Mastro v. Kumakichi Corp.

Kumakichi Corporation conveyed real property to Michael Mastro by statutory warranty deed. An adjacent landowner, Newhall/Jones, encroached upon the property at the time of the sale, but did not assert rights to the encroached portion until nearly one year after closing. Mastro sued Kumakichi and its shareholders, as successors in liability, for breaching the warranty deed covenants. The trial court awarded summary judgment in Mastro’s favor, and Kumakichi and its shareholders appeal.

We affirm, finding that: (1) Kumakichi breached its duty to defend Mastro against the Newhall/Jones adverse…