City of Palm Springs v. Living Desert Reserve
California Court of Appeal, Fourth District, Division 2
82 Cal. Rptr. 2d 859 (Ct. App.), review denied (1999)
A 1986 will conveyed 30 acres to Palm Springs (plaintiff) on the express condition it be used forever as a desert-flora-and-fauna park, with the land reverting to Living Desert Reserve (defendant) if the condition were breached. When the city later decided it wanted a golf course instead and failed to buy out Living Desert's reversionary interest, it filed an eminent-domain action to gain immediate possession before ever actually breaching the park condition; the trial court held Living Desert's reversionary interest was not compensable, applying the ordinary rule that reversioners are uncompensated unless the condition was already breached at the time of valuation.
Whether an entity that takes possession by eminent domain of property held subject to a condition subsequent must compensate the holder of the reversionary interest in the property.