Southern California School of Theology v. Claremont Graduate UniversityAnnotate this Case
This cases concerns a dispute regarding terms included in a 1957 grant deed (and incorporated by reference into various other documents) transferring the land on which SCST's campus sits from Claremont College to SCST. The deed at issue contained two conditions subsequent, one regarding permissible uses of the property (Educational Use Clause) and one regarding conditions that would require SCST to offer the property for sale to Claremont on agreed terms (First Offer Clause), enforceable by a power of termination and right of reentry. On appeal, Claremont challenges the trial court’s use of the forfeiture doctrine to decline to enforce the deed's First Offer Clause and to create a first right of refusal in its stead.
The Court of Appeal reversed the trial court's judgment, agreeing with Claremont that the forfeiture doctrine has no application under these circumstances. The court need not decide whether the Marketable Record Title Act (MRTA) applies to the parties' dispute because even if it does apply, the First Offer Clause is an equitable servitude that the MRTA does not extinguish. The court concluded that enforcing the First Offer Clause as written would operate no forfeiture to either party; indeed, each party would receive that for which they bargained, and that to which they agreed. The court remanded with instructions.