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Case Citations [i] (Fall 2023)

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                               THE   AMERICAN
                               LAW INSTITUTE


                                      Fall 2023 Citations



        PROPERTY 2D DONATIVE TRANSFERS



 DIVISION   I. SOCIAL  RESTRICTIONS IMPOSED UPON THE CREATION OF PROPERTY
                          INTERESTS BY DONATIVE TRANSFERS

      PART   II. DIRECT  RESTRAINTS ON ALIENATION IN DONATIVE TRANSFERS

                                 CHAPTER 3.   DEFINITIONS

§ 3.4 Use Restraint

Ohio, 2022. Quot. in diss. op.; Rptr's Note quot. in diss. op. Purchaser of subsurface mineral rights in
real property from nonprofit organization, which had acquired the property through a conservation grant
from the state public-works commission, sued commission, seeking a declaration that organization did
not violate a deed restriction that was required under the terms of the grant when it sold the mineral
rights without commission's prior written consent. The trial court denied commission's motion for
partial summary judgment. The court of appeals reversed and remanded. This court affirmed, holding
that the restriction was valid, because it was reasonable and served a charitable or public purpose, and
that organization's transfer of the mineral rights violated the restriction. Citing Restatement Second of
Property: Donative Transfers § 3.4, the dissent argued that the majority conflated the standards for
restraints on use of property with standards for restraints on transfer of property, and this resulted in the
majority holding as valid an unreasonable, direct restraint on alienation of the property. Siltstone
Resources, L.L.C. v. Ohio Public Works Commission, 200 N.E.3d 125, 146, 147.



                CHAPTER 4.   VALIDITY OF RESTRAINTS ON ALIENATION

§ 4.2 Validity of Forfeiture Restraint

Ohio, 2022. Cit. in diss. op. Purchaser of subsurface mineral rights in real property from nonprofit
organization, which had acquired the property through a conservation grant from the state public-works
commission, sued commission, seeking a declaration that organization did not violate a deed restriction
that was required under the terms of the grant when it sold the mineral rights without commission's prior
written consent. The trial court denied commission's motion for partial summary judgment. The court of
appeals reversed and remanded. This court affirmed, holding that the restriction was valid, because it
was reasonable and served a charitable or public purpose, and that organization's transfer of the mineral
rights violated the restriction. The dissent cited Restatement Second of Property: Donative Transfers §§
4.2 and 4.3 in defining different categories of transfer restrictions, and argued that the transfer restriction
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          For earlier citations, see the Appendices, Supplements, or Pocket Parts, if any, that correspond to the subject matter under examination.