Village Of Peoria Heights v. Keithley

132 N.E. 532 (1921)

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Nature of the Case

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Facts

Gilbert was the owner of the major part of a village of P. He conveyed by warranty deed to P, lots 28 and 29 in block 6 of said addition, the expressed consideration being 'the sum of $600 in hand paid and the observance of the provisions hereinafter named.' The deed contained the following conditions: 'The consideration for this deed is that P shall use the said lots for the purpose of a town hall and the location of the village waterworks and other village buildings of a public nature, provided, however, that the said village shall by ordinance provide that no saloon license for the sale of any intoxicating, malt, vinous, mixed or fermented liquors, and no license for the keeping of dram-shops or saloons, shall ever be granted to operate within said Seiberling's addition to P, and if there is a breach of such conditions, which form the consideration of his deed, such breach shall work a forfeiture of the said lots and the title to same shall revert to the grantors, their heirs and assigns, together with all the improvements thereon.' No cash was paid by P. P passed an ordinance prohibiting the sale of intoxicating liquors in the addition. P purchased a lot outside of the addition and built thereon a village hall. P has erected no buildings on the lots in question. On December 20, 1910, Gilbert and wife by an unconditional form of Warranty deed conveyed said property to D. There is no evidence that D paid anything for these lots nor that he has ever had possession of them. On March 1, 1920, Gilbert by quit-claim deed conveyed to P all his present and future interests in said lots, including all interest that he then had or could or might acquire through forfeiture or otherwise. P filed its bill praying that the deed to D be canceled and removed as a cloud upon P's title to said lots and for other relief. D filed his cross-bill asking that the title be quieted in him. The cross-bill was dismissed on demurrer. The court found that P was in possession of the lots and that at the time Gilbert executed his deed to D Gilbert had no interest in the premises capable of being assigned or conveyed and that D obtained no interest and that his deed was void. D appealed.