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First Rebecca Baptist Church, Inc. v. Atlantic Cotton Mills & Rivoli Crossing Baptist Church, Inc.
Citations: 263 Ga. 688; 440 S.E.2d 159; 93 Fulton County D. Rep. 4202; 1993 Ga. LEXIS 1092Docket: S93A1334
Court: Supreme Court of Georgia; November 24, 1993; Georgia; State Supreme Court
The appeal concerns the ownership of property previously given by Atlantic Cotton Mills to Rebecca Baptist Church, with Atlantic seeking a declaration based on a reverter clause in the deed. Defendants include First Rebecca Baptist Church, Inc. and Rivoli Crossing Baptist Church, Inc., both claiming ownership. The trial court ruled in favor of Rivoli, affirming it as the original congregation and concluding that the reverter clause was not activated by Rivoli's relocation. However, the appellate court agrees with the trial court's identification of Rivoli as the rightful congregation but reverses its conclusion regarding the reverter clause, determining that it was activated when the property ceased to be used for church purposes by Rivoli in 1979. The reverter clause explicitly states that the property must be used for the benefit of the congregation, and the continued worship by the minority group, First Rebecca Baptist Church, does not comply with this requirement. Consequently, the property reverted to Atlantic as of 1979. Additionally, the appellate court addresses Rivoli's argument that the reverter clause is unenforceable due to being an impermissible restraint on alienation, referencing relevant case law and statutes. Georgia recognizes an exception to the general rule regarding property transfers, specifically when property is conveyed to a charitable organization for charitable purposes. In the case of Rustin v. Butler, the court upheld a reverter clause that mandated a school be built on the property, stipulating that forfeiture would occur if the property was not used for educational purposes. The rationale for this exception is that a donor can create a perpetual charitable gift and impose conditions to ensure the property remains with the donee indefinitely. Consequently, the donor's charitable intent is prioritized over concerns about alienation and vesting. Therefore, the reverter clause was deemed enforceable, resulting in the property reverting to Atlantic under those terms. The judgment was reversed, with all justices concurring.