Uploaded March 2025 | Updated September 2026, 3 weeks ago
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Ferrero Construction Co. v. Dennis Rourke Corp.
Court of Appeals of Maryland
536 A.2d. 1137 (1988)
The rule against perpetuities is a property law rule that prevents the remote vesting of property interests.
Most frequently, the rule invalidates interests created by trusts or wills that vest far in the future. But sometimes, it complicates real estate purchases, as an unsuspecting plaintiff learned in Ferrero construction company versus Dennis Rourke corporation.
Dennis Rourke corporation purchased two lots on Mercy Court from Ferrero construction company.
In the purchase contract, Ferrero granted Rourke a right of first refusal on the sale of any of the remaining lots Ferrero owned on Mercy Court.
Roughly three years later, Ferrero notified Rourke that a third party had offered to buy one of the remaining lots. Ferrero shared the essential terms of the offer with Rourke, and gave Rourke ten days to submit a contract for consideration.
Rourke told Ferrero it was exercising its right of first refusal, and submitted a contract essentially matching the third party's offer. Ferrero decided not to sell, and returned both offers unsigned.
Rourke sued Ferrero in state court, seeking specific performance.
Rourke alleged that it was entitled to conveyance of the lot, because it had exercised its right of first refusal.
The trial court entered judgment for Ferrero, determining that the rule against perpetuities invalidated Rourke's right. The Maryland Court of Special Appeals reversed, holding that the rule didn't apply, and the right of first refusal was valid. The Maryland Court of Appeals granted cert.
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Get more case briefs explained with Quimbee. Quimbee has over 42,700 case briefs (and counting) keyed to 988 casebooks ► quimbee.com/case-briefs-overview
Ferrero Construction Co. v. Dennis Rourke Corp.
Court of Appeals of Maryland
536 A.2d. 1137 (1988)
The rule against perpetuities is a property law rule that prevents the remote vesting of property interests.
Most frequently, the rule invalidates interests created by trusts or wills that vest far in the future. But sometimes, it complicates real estate purchases, as an unsuspecting plaintiff learned in Ferrero construction company versus Dennis Rourke corporation.
Dennis Rourke corporation purchased two lots on Mercy Court from Ferrero construction company.
In the purchase contract, Ferrero granted Rourke a right of first refusal on the sale of any of the remaining lots Ferrero owned on Mercy Court.
Roughly three years later, Ferrero notified Rourke that a third party had offered to buy one of the remaining lots. Ferrero shared the essential terms of the offer with Rourke, and gave Rourke ten days to submit a contract for consideration.
Rourke told Ferrero it was exercising its right of first refusal, and submitted a contract essentially matching the third party's offer. Ferrero decided not to sell, and returned both offers unsigned.
Rourke sued Ferrero in state court, seeking specific performance.
Rourke alleged that it was entitled to conveyance of the lot, because it had exercised its right of first refusal.
The trial court entered judgment for Ferrero, determining that the rule against perpetuities invalidated Rourke's right. The Maryland Court of Special Appeals reversed, holding that the rule didn't apply, and the right of first refusal was valid. The Maryland Court of Appeals granted cert.
Want more details on this case? Get the rule of law, issues, holding and reasonings, and more case facts here: quimbee.com/cases/ferrero-construction-co-v-dennis-rourke-corp
The Quimbee App features over 42,700 case briefs keyed to 988 casebooks. Try it free for 7 days! ► quimbee.com/case-briefs-overview
Have Questions about this Case? Submit your questions and get answers from a real attorney here: quimbee.com/cases/ferrero-construction-co-v-dennis-rourke-corp
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