Brown v. Lober

Facts

Plaintiffs bought 80 acres in Montgomery County from William and Faith Bost. They received a statutory warranty deed, with no exceptions, dated December 21, 1957. They took possession and recorded the deed. On May 8, 1974, plaintiffs granted Consolidated Coal Company a coal option on the coal rights for $6,000. About two years later, plaintiffs discovered that they owned only a one-third interest in the subsurface coal rights. A public record showed that in 1947 a prior grantor had reserved a two-thirds interest in the mineral rights. Plaintiffs had their abstract of title examined in 1958 and 1968 for loan purposes, but they contended that until May 4, 1976, they believed that they were the sole owners of the surface and subsurface rights. Plaintiffs and Consolidated then renegotiated the deal to provide $2,000 for a one-third interest in the coal rights. On May 25, 1976, plaintiffs sued the executor of Faith Bost's estate for $4,000 in damages. Nobody had begun to remove the coal or otherwise shown a clear intent to possess the mineral estate exclusively.

Issues

1. When did plaintiffs' cause of action for breach of the covenant of seisin accrue, and did the 10-year statute of limitations bar it?
2. Was the covenant of quiet enjoyment breached, through a constructive eviction, when the grantees learned that another held paramount title to two-thirds of the coal but no one had interfered with their right of possession?
3. Will the court decide a covenant against incumbrances claim that was raised for the first time on appeal?

Holding

The seisin claim accrued when the deed was delivered in 1957, so the 10-year statute barred it. The quiet enjoyment claim was premature: the mineral estate was vacant, and no one holding paramount title had yet interfered with plaintiffs' right of possession, so there was no constructive eviction and no breach.