United Virginia Bank/Citizens & Marine v. Union Oil Company of California
Supreme Court of Virginia
197 S.E.2d 174 (1973)
William Abbitt granted Union Oil Company (defendant) a 120-day option to purchase land at a planned Newport News highway intersection, with the option period not beginning until the city acquired the necessary highway right-of-way; Union Oil later assigned the agreement to Sanford & Charles (defendant). United Virginia Bank, executor of Abbitt's estate (plaintiff), sued arguing the agreement was void under the rule against perpetuities because, at execution, it was uncertain when, if ever, the city would acquire the right-of-way, meaning the option could vest more than 21 years later; Sanford countered that the highways were expected to be completed by 1987 (within 21 years) and asked the court to apply cy pres reformation or the wait-and-see doctrine. The trial court held the agreement valid, and the bank appealed.
Whether, if it is possible that an interest will not vest within 21 years, the interest violates the rule against perpetuities, even if the parties intend for the interest to vest within 21 years.