## Facts

- W. J. and Hazel Somerville owned Lots 44–46 in a subdivision and, relying on a survey, believed they were constructing a warehouse on their own Lot 46.
- The Somervilles mistakenly constructed the warehouse on adjacent Lot 47, which was owned by William and Marjorie Jacobs.
- Construction was completed in January 1967.
- After completion, the Somervilles conveyed Lots 44–46 (not Lot 47) to Fred Engle and Jimmy Pappas, who leased the warehouse to a bottling company.
- The Jacobses discovered the warehouse stood on their lot and asserted ownership of the building and fixtures under the doctrine that improvements affixed to land become part of the realty.
- The Somervilles (joined by their grantees) filed an equity action seeking either compensation for the improvements’ value or, alternatively, an order compelling conveyance of Lot 47 for fair consideration.
- The circuit court entered a decree requiring the Jacobses to elect either to pay $17,500 and retain the building or to convey Lot 47 for $2,000; the Jacobses appealed.

## Issues

1. Whether equity may grant relief to a good-faith improver who, under an honest and reasonable mistake, erects a substantial permanent improvement on another’s land by requiring the landowner to compensate for the value added or convey the land for fair value.

## Decision

- The court held that equitable relief is available to a good-faith mistaken improver to prevent unjust enrichment.
- The court approved a conditional remedy requiring the landowner to choose between compensating the improver for the enhancement in value or conveying the land (or relevant interest) for its unimproved value.
- The court remanded for further proceedings to refine the monetary determinations while sustaining the equitable framework of the decree.

## Legal Principles

- At law, permanent improvements affixed to land belong to the landowner under annexation; equity may nonetheless impose an in personam obligation to avoid unjust enrichment.
- A mistaken improver may obtain equitable relief when the improvement was made under an honest, reasonable, and good-faith belief of ownership.
- The standard measure of recovery is the enhancement in the land’s value attributable to the improvement (often limited to the lesser of cost or value added), rather than automatic reimbursement of construction cost.
- Equity may structure relief as a forced election: the landowner may retain the improvement upon paying compensation or convey the land upon receiving fair value for the land in its unimproved condition.

## Conclusion

The court recognized an equitable mistaken-improver doctrine: although the landowner holds legal title to both land and building by annexation, a landowner who would otherwise receive a windfall from a good-faith boundary mistake may be required to compensate for the value added or to convey the affected land for fair value.


Somerville v. Jacobs, 153 W. Va. 613, 170 S.E.2d 805 (W. Va. 1969)