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Real Property Law

By Stewart Sterk
December 01, 2020

Possibility of Reverter Enforced

Paul Smith's College of Arts and Sciences v. Roman Catholic Diocese of Ogdensburg 2020 WL 5549734 AppDiv, Third Dept., 9/17/20 (Opinion by Garry, P.J.)

In an action by a private college for a determination that it owned property in fee simple, the college appealed from Supreme Court's grant of summary judgment to the Roman Catholic Diocese. The Appellate Division reversed, holding that because the diocese initially acquired a fee simple determinable, and the diocese had stopped using the property for church purposes, the private college, as the grantor's successor, had acquired a fee simple absolute in the property.

In 1896, Paul Smith's Hotel company transferred property to the Bishop of Ogdensburg by a deed which provided that the property was to be used "[a]s and for [c]hurch purposes only, … and in case the said premises shall be devoted to any other use than for [c]hurch purposes, … this conveyance shall be void and the parties of the first part shall have the right to re-enter and take possession of said premises …." A church was then built on the property. In 1937, the then-owner of the hotel company died with a will creating the private college and directing that all of the hotel company's assets be transferred to the college. The parties to the current dispute stipulated that the transfer included a deed transferring all reversionary rights and rights of entry held by the hotel company. In 2015, the Bishop of Ogdensburg relegated the church on the premises to "profane but not sordid use," and indicated that parishioners would be served by another church. The dioceses subsequently removed the altar and the stained glass windows. The private college then brought this action for a declaration that it now owned the church in fee simple absolute. Supreme Court disagreed and granted the diocese's summary judgment motion.

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