Chesapeake Exploration, L.L.C. v. Valence Operating Co

In Chesapeake Exploration, L.L.C. v. Valence Operating Co., No. H-07-2565, 2008 WL 4240486 (S.D. Tex. Sept. 10, 2008) in which a federal district court held that "an exclusion of warranty cannot, by itself, convert a deed in fee simple to a quitclaim deed." In that case, the court held that the lease at issue was not a quitclaim because, even though it contained a negation of warranty, the negation of warranty was not included in the habendum clause of the lease. The court reasoned that "a warranty is a separate covenant from the grant. It is not part of the conveyance . . . . It is a contract on the part of the grantor to pay damages in the event of failure of title." Id.