This section contains the nature of the case and procedural background.

The Dodge Company conveyed land bordering a lake to the City of Seattle (D). A condition in the deed stated that Dodge was to have the right to build and maintain a boathouse. D was to acquire the land for the boathouse and was to allow Dodge to build and use it. The deed provided that if this condition was breached allowed the Dodge or its successor to re-enter the land and forfeit the grant. From the time of the conveyance in 1908 until 1983 neither Dodge nor any of its successors asked D to allow it to build a boathouse. In 1983 several successors of Dodge (P) made such a demand on D, but D refused permission to construct the boathouse. P filed this action in an attempt to assert its right to forfeit D's interest in the land. The trial court held that the deed was valid, but that although P did not have a right to reenter the land, D was liable in damages for its refusal to grant permission to build the boathouse. Although both parties appealed, they agree that the deed created a condition subsequent. D challenged the validity of the condition in the deed, claiming that it was no longer enforceable. P cross-appealed, arguing that they did have the right to reenter the land, and challenging the adequacy of the damages awarded.

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