First National Bank of Oregon v. Townsend
Court of Appeals of Oregon
555 P.2d 477 (1976)
John Townsend executed an unrecorded 'Warranty Timber and Mineral Deed' to Claude Miller. After Miller died, First National Bank of Oregon (plaintiff), as his estate's personal representative, recorded the deed and claimed the property as part of the estate. The State of Oregon (defendant), representing Townsend's interests as grantor, argued the deed conveyed only timber and mineral rights, leaving Townsend with fee title -- meaning the property would escheat to the state, since Townsend died with no surviving heirs. The trial court found the deed conveyed fee simple title and ruled for the Bank; the state appealed.
Whether, under Oregon law, an ambiguous deed whose grantor's intent cannot be discerned from its language or from extrinsic evidence should be interpreted as conveying the greatest possible estate to the grantee.