Morello v. Land Reutilization Commission of the County of Douglas, Nebraska, 265 Neb. 735

Summary

The Nebraska Supreme Court considered whether a special warranty deed issued by the Douglas County Land Reutilization Commission obligated it to defend the purchaser against title defects arising before the Commission acquired the property. The court held that a special warranty deed warrants only against defects caused by the grantor or those claiming through it, not defects originating with prior titleholders. Because the title defect predated the Commission's ownership, the court affirmed summary judgment for the Commission.

Holdings

1. A special warranty deed warrants only against title defects arising from the acts or omissions of the grantor or persons claiming by, through, or under the grantor; it does not warrant against defects that existed before the grantor acquired the property.
2. The Land Reutilization Commission was not required to defend Morello against title defects that arose before the Commission obtained title to the property.
3. A special warranty deed is distinct from a quitclaim deed and is not converted into a quitclaim deed merely because it does not warrant against defects predating the grantor's ownership.

Questions Presented

1. Whether a special warranty deed issued by the Land Reutilization Commission under Neb. Rev. Stat. § 77-3205(2) warrants against title defects arising before the Commission obtained title through a foreclosure sale.
2. Whether the Commission was obligated under its special warranty deed to defend Morello in condemnation litigation when the title defect resulted from events occurring before the Commission acquired the property.

Disposition

affirmed