Like the zombie to the right, the Rule Against Perpetuities never dies and always marches forward. Most recently, in Yowell v. Granite Operating Co, the Supreme Court found that a reserved overriding royalty interest was an interest in real property (as well as a contract right) and could thus be subject to the Rule. Fortunately for Ruleaphobes, the Court also held: “Reformation under [CPRC] section 5.043 is not an ‘action’ to which the residual statute of limitations would apply. Rather, the Legislature enacted a remedial mandate for courts to reform interests, like the one in this case, that violate the Rule.” No. 18-0841 (May 15, 2020).
Category Archives: Limitations
No Hughes tolling
“Long after a corporate officer incurred personal liability for transferring corporate assets in violation of a federal statute, he sued the lawyer who purportedly ‘blessed’ the transactions without warning him about the collateral consequences.” Limitations on the officer’s legal-malpractice claim against that lawyer was time-barred because Hughes tolling was not available: “[T]he legal advice Erikson provided—approving Marine’s transfer of assets to creditors—was, at best, incidental to and tangentially related to the ongoing . . . litigation.” Erikson v. Renda, No. 18-0486 (Dec. 20, 2019) (emphasis added).