Urquhart v. Teller And The Cinnabar Foundation

958 P.2d 714 (1998)

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Nature of the Case

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Facts

Teller and his late wife were owners of 280 acres. In May 1971, they entered into an agreement with the Urquharts to sell 270 acres. Urquhart was given an option to purchase the ten remaining acres. As per the contract, the Urquhart's paid off the Contract for Deed and the unrestricted warranty deed was released from escrow and recorded. The contract for deed contained the option agreement. In the fall of 1993, Teller conveyed the 10-acre parcel to Cinnabar as a charitable gift. The value of the land had increased to about $400,000. Urquhart (P) sued seeking to enforce its option. Both parties filed motions for summary judgment. The trial court granted D partial summary judgment holding that the first right of refusal was limited to the duration of the Contract for Deed constituted an unreasonable restraint on alienation and violated the Rule Against Perpetuities.