Garza v. Grayson
Oregon Supreme Court
467 P.2d 960 (1970)
Bjorn Gadeholt owned two adjacent subdivision lots. The city was in the process of installing a sewer system to the area, and Gadeholt’s lots were not yet connected. In June 1963, Gadeholt sold one lot to Dan and Norma Garza (plaintiffs), but the deed to the Garzas did not include an easement for sewer access. In December 1963, Gadeholt sold the second lot to William Leer and his wife. In the deed to the Leers, Gadeholt included a reservation for “an easement for public utility purposes over and across” the Leers’ property. Jeffrey and Jane Grayson (defendants) eventually became the owners of the Leers’ property. The Garzas sued the Graysons to enforce the easement and install a sewer line across the Graysons’ property. The Graysons responded that a deed cannot create an easement that benefits a third person not party to the conveyance, and, therefore, Gadeholt could not have created an easement in the deed to the Leers that benefitted the Garzas’ land. The trial court found for the Garzas, and the Graysons appealed.
Rule of Law
Holding and Reasoning (O’Connell, J.)
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