Property Law Keyed to Kurtz
Alby v. Banc One Financial
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- Topic: Identifies the topic of law and where this case fits within your course outline.
- Parties: Identifies the cast of characters involved in the case.
- Procedural Posture & History: Shares the case history with how lower courts have ruled on the matter.
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- Brief Facts: A Synopsis of the Facts of the case.
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- Facts: What are the factual circumstances that gave rise to the civil or criminal case? What is the relationship of the Parties that are involved in the case. Review the Facts of this case here:
Eugene and Susan Alby (Plaintiffs) sold a portion of the family farm to their niece and her husband for $15,000, $85,000 below market value. The contract and deed stated that the land would revert to the Plaintiffs automatically if the purchasers subdivided, mortgaged, or otherwise encumbered the property. The niece and her husband took out two mortgages on the property and then defaulted. Banc One Financial (Defendant) held one of the mortgages and purchased the property in foreclosure. Plaintiffs filed a quiet title action against Defendant, claiming that under the terms of the deed, the property had automatically reverted to the Plaintiffs when the purchasers encumbered the property. The trial court found the reversion clause to be an unreasonable restraint on alienation of property and therefore void as against public policy. The court of appeals reversed, finding the restraint reasonable. Defendant appealed to the state supreme court.
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