Leach v. Gunnarson

The Leaches (defendants), who in 1954 had granted their in-laws Henry and Betty Leach the right to build a small dam and run a pipe carrying spring water across the Leaches' land, sold that land in 1975 to Ove Gunnarson (plaintiff) via a warranty deed containing a covenant against encumbrances; Gunnarson accepted the deed knowing about the dam and pipe. When Henry and Betty later sued in 1977 to have the pipe arrangement declared an easement, Gunnarson denied their rights and brought a third-party claim against the Leaches for breach of the warranty against encumbrances if Henry and Betty's rights were upheld; the trial court ruled for Henry and Betty and dismissed Gunnarson's claim, and Gunnarson petitioned for review.