CALVERT v. SWINFORD
2016 OK 100
| Okla. | 2016Background
- Sisters Lisa Calvert and Teresa Roper, acting as attorneys-in-fact for their father, contracted to sell Oklahoma surface property in 2000–2001 while intending to retain mineral rights.
- Kansas counsel (Koger / Bremyer & Wise) and Powers Abstract Co. handled closing; deeds executed July 20, 2002 and recorded July 25, 2002 did not reserve mineral interests.
- Plaintiffs filed suit in 2014 against the abstract company and others alleging professional negligence and seeking reformation of the deeds, claiming they only discovered the omission in 2013.
- Defendant Powers Abstract moved for summary judgment asserting the claims were time-barred because the relevant statutes of limitations began to run when the deeds were recorded in 2002.
- Trial court granted summary judgment, finding recorded deeds give constructive notice and the discovery rule did not toll the limitations period; plaintiffs appealed to the Oklahoma Supreme Court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| When does the statute of limitations for a grantor’s negligence/reformation claim accrue? | Limitations tolled under discovery rule until plaintiffs knew or should have known of the deed error (discovered ~2013). | Limitations began when the deeds were recorded in 2002 because recorded instruments give constructive notice. | Accrual began when the deeds were filed; discovery rule inapplicable. |
Key Cases Cited
- Pangaea Exploration Corp. v. Ryland, 239 P.3d 160 (Okla. Civ. App. 2010) (recorded public records provide means of discovery triggering limitations)
- Samuel Roberts Noble Foundation, Inc. v. Vick, 840 P.2d 619 (Okla. 1992) (discovery rule applies to some professional negligence claims where injury not reasonably discoverable)
- Board of Comm’rs of Garfield County v. Renshaw, 99 P. 638 (Okla. 1909) (public record of transaction charges party with notice of facts discoverable by diligent inquiry)
- Webb v. Logan, 150 P. 116 (Okla. 1915) (discovery rule tolled where grantor illiterate and fraud concealed deed contents)
- Cutright v. Richey, 257 P.2d 286 (Okla. 1953) (grantor presumed to have made all reservations intended; deed controls absent clear reservation language)