United Virginia Bank v. Union Oil Co. of California

The question for decision in this appeal is whether the provisions of a land option agreement violate the rule against perpetuities. For reasons to be later discussed, we hold that the rule is violated.

The question arose in a declaratory judgment proceeding brought by United Virginia Bank/Citizens & Marine (hereafter, the Bank), executor and trustee under the last will and testament of William Jonathan Abbitt, deceased, against Union Oil Company of California and Sanford & Charles, Inc. (hereafter, Sanford). The Bank sought a declaration that an option agreement entered into by Abbitt during…