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

P bought land and paid D for a title insurance policy. After P began to build on the property, it was discovered that Mrs. Hal Padgett had an easement in and over the property, that P had notified D of this fact, that D admitted the validity of the easement and that D requested that it be allowed to bring suit in order to minimize the damages. The value of the property without the easement was $15,000 and the value encumbered was $5,000. The value of the property appurtenant to the easement was $50,000. P sued D for the proceeds of the policy $7,000. D claimed that the market value of the property was irrelevant and immaterial and the correct measure of damages was the difference between the purchase money and the market value of the property with the easement. D also demurred in that the land was adapted to P's business of selling building supplies. The trial court gave P twenty days to amend, and P refused, and the court sustained the demurrers.

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