Title Insurance Law Journal

Title Insurance

• No Coverage for Excepted Quiet Title Suit; No Escrow or Sub-Escrow Liability Either: 1500 Viewsite Terrace, LLC v. Pickford Escrow, Inc.
• Owner Cannot Sue Title Insurer After Trial in Main Case: Mocco v. Frumento
• Policy Protects Insured Against Liens Attaching to Interest of Her Co-Owner: Degueyter v. First American Title Ins. Co. of Louisiana
• Refi Rate Suit Loses Federal Jurisdiction When Class Claims Dropped: Gale v. Chicago Title Ins. Co.

Agent Focus

• Tight Connections to Agent Could Make Underwriter Liable for Alleged Investor Fraud: Adrianne Roggenbuck Trust v. Stewart Title Co.
• Underwriter Must Prove Claim Settlement Was Reasonable To Collect From Agent: Colonial Title Company, LLC v. Commonwealth Land Title Ins. Co.

Escrow Matters

• No Escrow Negligence Claim in Texas When Parties Signed Escrow Contract: Luppino v. York
• Bank Not Liable for Check Fraud: Belle Meade Title & Escrow Corp. v. Fifth Third Bank
• Alleged Violation of Good Funds Law Does Not Benefit Borrower: Newman v. Bank of New York Mellon

RESPA Alert

• Class Certified in Section 8 Kickback Case: Palombaro v. Emery Federal Credit Union

Title Insurance

• Agent's Knowledge Imputed to Insured; Claim Notice Was Tardy: Emigrant Bank v. Commonwealth Land Title Ins. Co.
• Insurer Recovers From Indemnitor: First American Title Ins. Co. v. Howell
• Fraud Claim Against Title Insurer Barred: Celestin v. Simpson

Agent Focus

• E & O Carrier Has No Duty to Defend Escrow Account Lawsuit: Fidelity Nat'l Title Ins. Co. v. Maxum Indemnity Co.
• Title Agent Not Liable for Search Error: Russo v. PPN Title Agency, LLC

Escrow Matters

• Rhode Island Escrow Suit Controlled by Legal Malpractice Limitations Law: Fogarty v. Palumbo
• Escrowee Not Liable Because Seller Made Unsecured Installment Sale: Jenkins v. Security Title Agency Inc.
• Sub-Escrow Owes No Duty to Borrower: Ruvalcaba v. Ocwen Loan Servicing, LLC
• Insurer May Argue Lender Negligence as Defense in Flipping Escrow Lawsuit: Federal Deposit Ins. Corp. v. Chicago Title Ins. Co.
• Conveyance News
• Unreleased Mortgage Forces Loan Repurchase: Community Banc Mortgage Corp. v. North Salem State Bank
• Tax Agreement is an Encumbrance: AHF-Bay Fund, LLC v. City of Largo

Title Insurance

• Limited Recoupment From Non-Borrower Owner: Stewart Title Guar. Co. v. Delcid
• Title Insurance Is Not Property Crime Coverage: Sullivan v. Chicago Title Ins. Co.
• Insurer Gets Default Judgment Against Defendants Who Gave No Discovery Documents in Fraud Case: Stewart Title Guar. Co. v. 2485 Calle del Oro, LLC
• Individuals Are Not Insureds Winding Up Affairs of Corporate Insured: Horowitz v. Stewart Title Guar. Co.
• Idaho Reissue Rate Class Decertified: Lewis v. First American Title Ins. Co.
• Bad Faith Failure to Clear Title Claim Abated: Stewart Title Guar. Co. v. The Machado Family Limited Partnership

Agent Focus

• Time to Sue Agent Begins Running on Policy Date: Stewart Title Guar. Co. v. ISGN Fulfillment Services, Inc.

Escrow Matters

• Person Who Deposited Money Not a Third Party Beneficiary of Escrow Instructions: Muller v. Stewart Title Guar. Co.
• Closer Did Not Err in Prorating Taxes: B & H Resources, L.L.C. v. 28925 Lorain Inc.
• Settlement Agent Not a Mere Notary: DiRenzo v. Katchen

Conveyance News

• Access Case Against BIA Dismissed: Northern New Mexicans Protecting Land, Water and Rights v. United States

RESPA Alert

• Title Agencies Did Not Violate RESPA Affiliated Business Rule: Consumer Financial Protection Bureau v. Borders & Borders, PLC

Agent Focus

• Quicken Loans' Title Agency Did Not Commit Unauthorized Practice of Law: Boone v. Quicken Loans, Inc.

Title Insurance

• Title Policy Lawsuit Filed Too Late: Park v. First American Title Ins. Co.
• Sellers Cannot Evade Warranty Liability to Buyers Because Insurer Paid Tax Debt: In re Brown
• Loan Policy Terminates on Trustee's Sale: Hovannisian v. First American Title Ins. Co.
• Insurer Cleared Title With Reasonable Diligence: Wade v. Stewart Title Guar. Co.

Escrow Matters

• Construction Escrowee Has No Duty to Inspect Project: 231 W. Scott, LLC v. Lakeside Bank

Title Insurance

• Policy and Duty to Defend Terminate on Voluntary Conveyance: Fidelity Nat'l Title Ins. Co. v. Butler
• Lender That Had Priority by Subrogation Had No Loss: First Bank Texas, SSB v. W.D. Welch, P.C.
• Easement by Necessity Does Not Automatically Qualify as Right of Access: BJD Properties, LLC v. Stewart Title Guar. Co.

Agent Focus

• Agent Debt to Insurer is Dischargeable: Conestoga Title Ins. Co. v. Patchell (In re Patchell)
• Escrow Theft Claim Not Dischargeable in Bankruptcy: Southern Title Ins. Corp. v. Syed Rizwan Mohiuddin (In re Mohiuddin)

Escrow Matters

• Attorney Closing Error Not a Consumer Protection Act Violation: Faerber v. Troutman & Troutman, P.C.
• Party Who Rejected Escrowee May Not Sue for Escrow Negligence: Goldberg, Sager & Associates v. Gilewski
• Judgment Creditor Cannot Grab Debtor's Escrowed Money: O'Reilly Law Group, LLC v. Stewart Title Co.

Closing Protection Letters

• Court Enforces CPL Notice Time Limit against FDIC: Federal Deposit Ins. Corp. v. Fidelity Nat'l Title Ins. Co.

Conveyance News

• Willingness to Insure Does Not Make Title Marketable: Latter & Blum, Inc. v. Ditta
• Actual Knowledge of Lien Matters Even if Defect Foils Constructive Notice: Borries v. Goshen Mortgage, LLC

Title Insurance

• No Bad Faith on Title Insurance Claim; "Agreed To" Not Limited to Bad Acts: Bank of America, N.A. v. Chicago Title Ins. Co.
• Ohio Court Bends Over Backwards to Find Mechanic Lien Coverage: Johnson v. U.S. Title Agency, Inc.
• Insurer Seeking to Fix Title Is Not a Debt Collector: S. Bank, N.A. v. McBride
• References to Federal Laws Do Not Support Federal Question Jurisdiction: Vos v. First American Title Ins. Co.
• Pre-Coupment Claim Not Ripe: Fidelity Nat'l Title Ins. Co. v. Wooden

Agent Focus

• Insurer May Sue Searcher for Claim Payment and Attorneys' Fees: Chicago Title Ins. Co. v. Accurate Title Searches, Inc.
• Agency Contract Not Clear About Whether Owner Owes for Escrow Account Shortage: First American Title Ins. Co. v. National Title Agency, LLC

RESPA Alert

• Illinois Attorney Agent RESPA Ruling Left Standing: Chultem v. Ticor Title Ins. Co.

Escrow Matters

• Principal Cannot Sue Escrowee for Performing Instruction to Alter Deed: Versailles Investments, LLC v. First California Escrow Corp.

Conveyance News

• Recorder Not Required to Redact Racial Restrictions From Recorded Deeds: Mason v. Adams County Recorder

Title Insurance

• Insured ‘Agreed To’ Grant Easement, Voiding Coverage; Escrowee Had No Duty to Search Title: Eleazer v. First American Title Ins. Co.
• Insurer Must Defend Suit Claiming Loan was Fraud on Creditors: Banner Bank v. First American Title Ins. Co.
• Title Insurer Must Defend All Claims in Pennsylvania: Lupu v. Loan City, LLC
• Policy Might Insure Title Not Conveyed to Insured: Michael v. Stock
• Survey Exception Negates Duty to Defend Boundary Dispute Action: Fischer Sand and Aggregate, LLP v. Old Republic Nat'l Title Ins. Co.
• Proposed Buyer From Insured Not a Third Party Beneficiary of Policy: McRae v. Westcor Land Title Ins. Co.

Agent Focus

• E&O Carrier That Refused to Defend Must Pay Judgment and Settlement Amounts: Title Industry Assurance Co., R.R.G. v. First American Title Ins. Co.

Escrow Matters

• Escrow Forum Clause Applies Even When Escrowee Accused of Fraud: Podesta v. Hanzel

Agent Focus

• Agent Has No E&O Coverage for Theft of Escrow Money by Email Impostor: Resource Real Estate Services, LLC v. Evanston Ins. Co.
• Time to Sue Agent for Deed Drafting Begins Running When Title Challenged: LCL, LLC v. Falen
• Agent Not Granted Perpetual Use of Underwriter's Name: Stewart Title Guar. Co. v. Stewart Title Latin America, Inc.

Escrow Matters

• Time to Sue for Recording Error Begins on Recording: Long v. Freedom Escrow
• Indemnity Not Enforceable When Escrowee Was Grossly Negligent: Busch v. Welling
• Title Agent Check Valid to Redeem Taxes: City of Chattanooga v. Tax Year 2011 City Delinquent Real Estate Taxpayers
• Escrow Instruction Forum Choice Clause Not Enforceable: Summit Diamond Bridge Lenders, LLC v. Philip R. Seaver Title Co., Inc.

Title Insurance

• Insurer Entitled to Conduct Watchful Waiting in Response to Affidavit: Osprey Landing, LLC v. First American Title Ins. Co.

Conveyance News

• Buyer Takes Title to Lien Vacated by Void Judgment: OC Interior Services, LLC v. Nationstar Mortgage, LLC
• Recent Equitable Subrogation Decisions

Title Insurance

• Full Credit Bid Does Not Extinguish Policy Claim: Equity Income Partners, LP v. Chicago Title Ins. Co.
• Exclusion 3(a) Negates Coverage for Liens Not Paid Off by Lender's Closing Agent: Northwest Savings Bank v. Fidelity Nat'l Title Ins. Co.

Agent Focus

• Insurer Not Liable for Acts of Title Agent that Allegedly Abetted Fraud: Thurber v. Thurber
• Insurer Not Bound by Escrow Agreement Signed by Title Agent: La Candelaria East Harlem Community Center, Inc. v. First American Title Ins. Co.

Closing Protection Letters

• Latest FDIC CPL Fight in Michigan Muddles On: Federal Deposit Ins. Corp. v. Fidelity Nat'l Title Ins. Co.

RESPA Alert

• Court Agrees With CFPB on Captive Reinsurance Agreement and RESPA: White v. PNC Financial Services Group, Inc.

Escrow Matters

• No Class Treatment For Escrow Dispute: Angelo v. Stewart Title & Trust of Phoenix, Inc.
• Waiver of Jury Trial in Escrow Agreement Is Enforceable: DAB, Incorporated v. Sunbelt Rentals, Inc.
• 1031 Intermediary Liquidity Problems Not a Racketeering Operation: Germinaro v. Fidelity Nat'l Title Ins. Co.

Conveyance News

• No Transfer Tax Payable on Mortgage Assignment: City of Chicago v. Elm State Property LLC
• Recent Equitable Subrogation Decisions

Title Insurance

• Closing Protection Letter Loss Capped at Value of Property at Time of Foreclosure: Aurora Loan Services, LLC v. Hirsch
• Michigan Reverses CPL Decision in Favor of Title Insurer: Bank of America, N.A. v. Fidelity Nat'l Title Ins. Co.
• Seller Has Legal Duty to Disclose Easement Not Excepted in Commitment: Gardner Group, LLC v. Commonwealth Land Title Ins. Co.
• Unrecorded Easement Exception Did Not Negate Duty to Defend Insureds: Schram v. Fidelity Nat'l Title Ins. Co.
• Statute of Limitations for Suit on Policy Starts When Claim Is Closed: Grill v. Ticor Title Ins. Co.
• Insured Cannot Sue Insurer for Bad Title After Court Rules That Her Title Is Good: Gillard v. Fidelity Nat'l Title Ins. Co.

Escrow Matters

• Borrowers Have No Claim Against Escrowee for Payoff of Borrowers' Income Tax Debts: Edwards v. First American Title Ins. Co.

Agent Focus

• Lender Sued Title Agent Too Late for Mortgage on Wrong Parcel: S. Bank, N.A. v. HLC Escrow Inc.

Title Insurance

• No Loss Payable Because Insurer Cleared Title: Kahama VI, LLC v. HJH, LLC
• Insurer Entitled to Judgment Against Seller for Policy Loss: Glassick v. Wells Federal Bank
• Closing Agent's Failure to Pay Off Prior Loan Invokes Exclusion 3(a): Plaza Home Mortgage, Inc. v. Fidelity Nat'l Title Ins. Co.
• Insurance Department Complaint Does Not Keep Case Out of Federal Court: WFG Nat'l Title Ins. Co. v. Peniel Holdings, LLC
• Coverage Action Determined Property Ownership: Swinger v. Vanderpol, 2016
• Insurer Cannot Recover Loss From Foreclosure Surplus: Board of Managers of the Coronado Condominium v. Silva
• Policy Might Cover Water Pipe Because it Might Include Land Where Pipe is Located: Evans v. City of Warrentown
• Suit Against Title Insurer Frivolous Because Policy Issued by Different Insurer and Dispute Would Not Be Covered: Johnson v. Law Office of Schwartz

Escrow Matters

• FDIC's Bullying of Closer Does Not Change the Facts: Federal Deposit Ins. Corp. v. Ticor Title Ins. Co.
• New York Escrowee's Duties Are Very Limited: Sasidharan v. Piverger
• FDIC Must Prove Escrowee Violated Instructions by Obeying Seller Payment Directions: Federal Deposit Ins. Corp. v. Chicago Title Ins. Co.

Title Insurance

• No Policy Owed When Requirements Not Met: Bank of New York Mellon v. Commonwealth Land Title Ins. Co.
• Guest Column: No Constructive Notice When Restriction Not Filed in Chain of Title to Parcel at Issue: By Michael J. Sikora III, Sikora Law LLC, Columbus, Ohio
• Court Cannot Enforce Settlement After Action Dismissed: Camp Horne Self Storage LLC v. Lawyers Title Ins. Corp
• No Fiduciary Duty or Punitive Damages Claims on Title Policy Dispute: Johnsen and Allphin Properties, LLC v. First American Title Ins. Co.
• Title Company Wins Suit Over Claimed Improper Release of Deed of Trust: Eagle Equity Fund, LLC v. TitleOne Corp.
• Federal $75,000 Jurisdictional Limit Based on DIV, Not Policy Amount: David & Sheri Elter, LLC v. Stewart Title Guar. Co.

RESPA Alert

• Class Certified in Marketing Services Kickback Case: Fangman v. Genuine Title, LLC

Agent Focus

• Agency Contract Need Not Say That Mortgages Must Be Recorded: Stewart Title Guar. Co. v. Lewis
• E&O Policy Void Because Lawsuit Threat Not Disclosed in Application: Alterra Excess & Surplus Ins. Co. v. Excel Title Agency, LLC
• Insurer Entitled to Arbitrate Claim Against Agent for Search Error: Fidelity Nat'l Title Ins. Co. v. Wendell L. Hawkins, PA

Escrow Matters

• Escrowee Owed No Duty to Person Not a Party to the Escrow: Alereza v. Chicago Title Co.
• Bank May Be Liable to Customer for Not Stopping Escrow Fraud: Chang v. JPMorgan Chase Bank