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In 1974 Bobby and Mary Proffitt (Ds) sold one and one-half acres of real estate to Truman and Earline Atkinson, who sold it to Shirley Carter in 1978, who sold it to Ps in 1980. Two months later Ps discovered that the land had been mortgaged by Ds and that the mortgage was still outstanding. Ps sued Carter, the Atkinsons, and the Proffitts (Ds) for damages based on the general warranties in the warranty deeds. The jury held for the Atkinsons and Carter but held Ds liable to Ps for $4,390.78 representing the unpaid balance on the mortgage plus interest and costs. Ds appealed.

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