Schwenn v. Kaye

Schwenn (plaintiff) gave the oil royalties from her property to her daughter and son-in-law as a gift in 1969, then in 1974 sold the underlying property itself to the Kayes (defendants), with an escrow provision stating the royalties would be assigned to the Kayes "if assignable." After the sale closed and the Kayes began collecting royalties, Schwenn had her daughter transfer the royalty rights back to her, then sued the Kayes to claim the royalties for herself; the trial court ruled for the Kayes, and Schwenn appealed.