Paul R. and Suzanne B. Staley (plaintiffs) sued Paul L. and Carolyn A. Stephens (defendants) in connection with their contract for the sale and purchase of property in a residential subdivision. A pre-closing survey disclosed that the Staley's house infringed on subdivision setback requirements by one and one-sixth feet, and infringed on the local zoning setback line by about two inches. Several years remained before the statute of limitations on challenging the infringements would expire. The Stephenses asked the Staleys to get their neighbors to waive their rights to litigate over the infringements, but the Staleys refused to do so. In response, the Stephenses pulled out of the contract, on the grounds that the Staleys could not fulfill their contractual obligation to convey marketable title to the property. The Staleys sued. The trial court entered summary judgment for the Stephenses, and the Staleys appealed to the Indiana Court of Appeals.