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This section contains the nature of the case and procedural background.

Elliot Construction owned a lot that is the subject of this lawsuit. On November 1, 1956, (D) executed a warranty deed from Elliot to Producers Lumber (P) conveying the lot for $1,428. The lot was purchased by P so that its general manager, Montgomery, would build a home thereon. Montgomery graded the lot and planted trees and grass. On February 27, 1958, Elliot and Orts, the owner of Olney Bldg Co.(D), decided to construct nine dwellings on the lot that P had a warranty deed on. On April 14, 1958, D did learn that the lot had been sold to P. The dwelling on the lot had almost been completed, and negotiations ensued and D tried to reach a settlement with Montgomery. On April 22, 1958, D broke off negotiations and demolished the building. P then sued D, and the evidence showed that the lot had been conveyed to P but that D has simply forgot that he had done so. The jury found that D had built the dwelling in good faith. The trial court found that D was entitled to damages of $900. D appealed.

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