Title Insurance Law Journal

Title Insurance

• Sewer Pipe Does Not Invoke Homeowner's Policy Coverage: Rouse v. North American Title Ins. Co.
• Oklahoma Abstractor Negligence Claim Dismissed: Riverbend Land, LLC v. First American Title Ins. Co.

Agent Focus

• Non-Compete Enforceable After Agency Purchased by Underwriter: First American Title Ins. Co. v. Northwest Title Ins. Agency
• Attorney Censured for Issuing Policies After Termination: In the Matter of Carey
• Court Sides with Insurance Commissioner on In-State Favoritism Claim: American Homeland Title Agency, Inc. v. Yonas

Escrow Matters

• Wire Fraud Email Spoofing Claim Partly Survives Dismissal: White v. Citywide Title Corp.
• Lender Claim Against Trustee Limited to Foreclosure Fee Paid: Meiri v. Hayashi
• Escrowee Not Obligated to Treat Liens as Expired: Perry v. First American Title Co.
• Utah Escrowee Has No Duty to Halt Suspicious Transaction: Pyper v. Reil
• 1031 Tax Deferral Fails Because Delivery of Identification Notice Not Proven: Smith v. California Franchise Tax Board

Title Insurance

• Third Circuit Rejects In-For-All Rule in Pennsylvania Case: Lupu v. Loan City, LLC
• No Duty to Defend in Lawsuit About Wall Not on Insured Parcel: 631 North Broad Street, LP v. Commonwealth Land Title Ins. Co.
• Policy in Effect Though Agent Appointed After Closing: North American Title Ins. Co. v. Maryland Ins. Admin.
• Title Indemnities Do Not Cancel Claims Against Insurer Made by Indemnitors: Halprin v. Federal Deposit Ins. Corp
• Insurer Harmed by Late Claim Notice: Lurie v. Commonwealth Land Title Ins. Co.
• Native American Harvesting Rights Do No Fall Under Easement Exception: Robbins v. Mason County Title Ins. Co.

Agent Focus

• Deed by Impersonator Voids Title of Later Buyer Also: GO Properties, LLC v. BER Enterprises, LLC

Escrow Matters

• Deed Altered After Signing is Void and Beats Bona Fide Purchaser: Yanez v. Kler
• Settlement Service Fees Are Ratemaking Under Insurance Department Jurisdiction: Villanueva v. Fidelity Nat'l Title Co.

Title Insurance

• Lien Subordination Dispute Creates Duty to Defend: Investors Warranty of America, Inc. v. Chicago Title Ins. Co.
• Title Claim Barred Because Not Identified in Bankruptcy: Agha-Khan v. Mortgage Electronic Registration Systems Inc.
• Insurer Owed No Duty to Non-Insured Borrower to Remove Lien: Jaisinghani v. U.S. Bank N.A.
• Insurer Recovers Under Short Sale Agreement and No-Lien Affidavit: Stewart Title Guar. Co. v. 2485 Calle Del Oro, LLC

Closing Protection Letters

• Loan Assignee Not a Party to Closing Protection Letter: PennyMac Holdings, LLC v. Fidelity Nat'l Title Ins. Co.

Agent Focus

• Twin Agency Contracts Complicate Claim Issues: First American Title Ins. Co. v. Bowles Rice, LLP
• Time to Sue Agent Contract Guarantor Begins When Agent Found Negligent: Kessock v. Conestoga Title Ins. Co.

Escrow Matters

• Loan Closer Convicted for Borrower's Loan Fraud: United States v. Granitur

Conveyance News

• Electronic Indices Broaden Constructive Notice of Liens: United States v. Z Investment Properties, LLC

Title Insurance

• Time to Sue Insurer Begins When Court Order Voids Insured Interest: Park v. First American Title Ins. Co.
• Employees of Insurance Broker Not Liable to Customer: DAB Three, LLC v. LandAmerica Financial Group, Inc.
• Policy Lawsuit Filed Too Late: Cole-Parker v. Fidelity Nat'l Title Ins. Co.

Escrow Matters

• Money in Escrow is Property of Bankruptcy Estate: In re Price
• Closer Responsible for Not Detecting Impersonation: Ultimate Title, LLC v. Ladd
• One-Party Escrow Did Not Benefit Other Owner of Property: Brassell v. Harbourview Abstract, Inc.

RESPA Alert

• Repeat Title Orders Not a RESPA Violation: Taylor v. Gorilla Capital, Inc.

Agent Focus

• Attorney Hired by Title Company May be Liable for ‘Wrong’ Legal on Mortgage: JBJ Investment of South Florida, Inc. v. Southern Title Group, Inc
• Bank Not Liable for Paying Escrowed Money to Title Agent's Creditor: National Title Agency LLC v. JPMorgan Chase Bank

Conveyance News

• Recent Equitable Subrogation Decisions

Title Insurance

• Title Transfer and Mortgages Voided Based on Off-Record Nominee Agreement: Mocco v. Licata
• Indiana Affirms That Insured Cannot Make Misrepresentation of Title Claim: Pearman v. Stewart Title Guar. Co.
• Texas Prompt Claim Payment Law Does Not Apply to Title Insurance: Hall CA-NV, LLC v. Old Republic Nat'l Title Ins. Co.
• Special Warranty Deed Contains No Covenant of Seisen: Cochran Investments, Inc. v. Chicago Title Ins. Co.
• Time to Sue on Policy Runs From Date Insured Discovers Lack of Access Right: Fletcher Ranch Road Properties, LLC v. Chicago Title Ins. Co.
• No Personal Jurisdiction Despite Hundreds of Contacts With State: Old Republic Nat'l Title Ins. Co. v. Bell
• Title Insurer Settlement Payment Is a Setoff: Sky View at Las Palmas, LLC v. Mendez

Escrow Matters

• Attorney Who Stole Money Did Not Do So as Agent of Lender: Pineda v. Chase Bank USA
• Escrow Statute of Limitations Enforced: Nemeth v. Republic Title of Texas, Inc
• Trustee Under Deed of Trust Protected by Privilege: Fox v. SA Challenger, Inc.

Conveyance News

• Court Sorts Out Misnumbered Condo Unit Dispute: Kealy v. JP Morgan Chase Bank

Title Insurance

• Title Not Cleared by Marketable Title Act: Chesapeake Land Development Company LLC v. Chicago Title Ins. Co.
• Creditors' Rights Exclusion Applied: Hanks v. First American Title Ins. Co.
• Rerecording of Forged Deed of Trust Did Not Slander Title: Sanchez v. Lawyers Title Ins. Corp.
• False Statements on Title Affidavits Make Debt Non-Dischargeable: In re Fakhuri
• Negligent Procurement of Insurance Claim Time-Barred: Union Street Tower, LLC v. First American Title Ins. Co.
• Insured Did Not Prove Lost Profit, Rent or Decline in Value "Damages": Neikes v. Ticor Title Company of Oregon
• Title Misrepresentation Suit Time-Barred: Gutierrez v. Stewart Title Co.

Agent Focus

• Colorado Agent Gets Big Fine for Foreclosure Commitment Overcharge: State ex rel. Coffman v. Robert J. Hopp & Associates, LLC

Escrow Matters

• Harsh Circumstances Do Not Make Deed Escrow Unenforceable: Edwards v. CBD & Sons
• Escrowed Money Not Property of Bankruptcy Estate: In re Expert South Tulsa, LLC

Title Insurance

• Homeowner's Policy Does Not Insure Ownership of Encroaching Structure: Wei v. Stewart Title Guar. Co.
• Overlap Did Not Make Title Unmarketable; No Loss Payable for Use Regulations: Lauritzen v. First American Title Ins. Co.
• Federal Jurisdiction Based on Amount of Demanded Policy: Jury v. WFG Nat'l Title Ins. Co.
• Policy and Escrow Claims Brought Too Late; Claim Practices Action Survives: US Bank, N.A. v. HLC Escrow, Inc.
• Insurer Cleared Title by Paying for Lawsuit Filed by Insured: Stewart Title Guar. Co. v. Machado Family Limited Partnership No. 1

Escrow Matters

• Closer Not Liable for Post-Closing Property Damage: Bianchi v. Ladjen

RESPA Alert

• Insurance Premium Not a Thing of Value: Consumer Financial Protection Bureau v. Borders & Borders, PLC

Agent Focus

• Agent Not Liable for Content of Municipal Records Search: Ilkowitz v. Durand
• Failure to Disclose Road Taking Negated by Condemnation Award: Peace v. ITCOA, LLC
• Agent Conversation About Title Did Not Make It An Abstractor: Marcantel v. Stewart Title Guar. Co.

Title Insurance

• Insureds Suffered Judgment Lien; Also, No Coverage for Known Loss: Moser v. Fidelity Nat'l Title Ins. Co.
• Insurer Action Against Surveyors Filed Late: Commonwealth Land Title Ins. Co. v. KCI Technologies, Inc.
• Policy Coverage Not Invoked When Title Not Attacked: C & G Farms Inc. v. First American Title Ins. Co.
• Lender Might Have Policy Claim for Lost "Equity": RCN Capital, LLC v. Chicago Title Ins. Co.

Escrow Matters

• Money No Longer Protected Retirement Money Once in Escrow: In re Goodwin Miller
• Escrowee Owed No Duty to Lender To Be Paid From Closing: Cadence Bank, N.A. v. DLO Title, LLC
• Escrowee Not an Initial Transferee for Bankruptcy Recapture: In re Stanwich Financial Services Corp.
• Condo Construction Escrow Suit Time-Barred: Holliday v. Stewart Title of California, Inc.
• Double Escrow ‘Investor’ Recovers for Stolen Money: White v. Parker

Conveyance News

• Incomplete Mortgage Legal Description Was Adequate to Impart Notice: Williams v. Schneider

Title Insurance

• Lender Suffered or Created Mechanic's Liens; Title Not Unmarketable: Captiva Lake Investments, LLC v. Fidelity Nat'l Title Ins. Co.
• Duty to Defend Not Determined by Outcome of Suit: Casero v. Chicago Title Ins. Co.
• Appraiser Not Excluded Based on DIV Method: Helms v. Old Republic Nat'l Title Ins. Co.
• New Jersey Title Insurance Limitations Period Clarified: Hirschberg v. Fidelity Nat'l Title Ins. Co.
• Policy 'Showed' Easement by Excepting One of Two Instruments: Parks v. Stewart Title Guar. Co.
• Mortgage Insurance Coverage Rescinded Due to Loan Fraud: Ocwen Loan Servicing, LLC v. Radian Guaranty, Inc.

Agent Focus

• Agent Nixes E&O Coverage By Not Disclosing Potential Claim on Application: Aztec Abstract & Title Ins., Inc. v. Maxum Specialty Group
• Agent Termination Turns Into Defamation Lawsuit: WFG Nat'l Title Ins. Co. v. Meehan
• Mortgage Not Recorded; Borrower Owes Title Agent Under Note: Independent Settlement Services, LLC v. Lewis

Escrow Matters

• Bank Not Bound by Wrong Payoff Letter: EvaBank v. Traditions Bank
• Escrowee Had No Duty to Prevent Ponzi Scam: Atooi Aloha, LLC v. Gaurino

Escrow Matters

• Lawyer Cannot Sue Escrowee on Clients' Behalf: Nevarez Law Firm, P.C. v. Dona Ana Title Co.
• Foreclosure Rescue Outfit Also Guilty of Unauthorized Practice of Law: Ohio State Bar Ass'n v. Home Advocate Trustees, L.L.C.

Title Insurance

• No Coverage for Parcel Not Insured in Policy: Kreider v. Correia

Agent Focus

• Loan Assignee Can Sue for Wrongful Release of Deed of Trust: SMS Financial XXIII, LLC v. Cornerstone Title Co.
• Agent Claim Lies in Crack Between Two E&O Policies: James River Ins. Co. v. Brick House Title, LLC
• Attorney Agent Gave Advice on Which Seller Relied: Feingerts v. D'Anna

Conveyance News

• Nevada Homeowners Association Liens Clarified: Bank of America, N.A. v. Toscano River Townhomes Ass'n, Inc.
• New Hampshire Homestead Right Not Subject to Mortgage: Deutsche Bank Nat'l Trust Co. v. Pike
• Foreclosure Not Barred by Statute of Limitations: Baughman v. Wells Fargo Bank
• Tardy Mortgage Satisfaction Recording Class Action Suit Dismissed: Nicklaw v. CitiMortgage, Inc.
• Bankruptcy Rulings on Recording Laws
• Recent Equitable Subrogation Decisions

Title Insurance

• Use Restriction Does Not Make Title Unmarketable, But Might Be an Encumbrance: Chesapeake Land Development Company LLC v. Chicago Title Ins. Co.
• Borrower Not a Beneficiary of a Loan Policy: Taylor v. JP Morgan Chase Bank
• Utah Court Addresses Date and Measure of Loss and Timeliness of Claim Payment: Marcantel v. Stewart Title Guar. Co.
• Insurer in Transaction Gets First Dibs on Forfeited Money: United States v. Gettel
• Insurer-Subrogee Barred from Fixing Title After Insured Failed: Bank of New York Mellon v. Georg

Agent Focus

• Agent's Closing of His Own Loan Ends Badly: First American Title Ins. Co. v. Sadek
• Agent Not Entitled to See Privileged Documents in Loss Recovery Suit: First American Title Ins. Co. v. Bowles Rice, LLP
• Insurer Must Prove Reasonableness of Claim Settlement to Recover From Agent: Colonial Title Company, LLC v. Commonwealth Land Title Ins. Co. Escrow Matters
• When Neither Party Prepared to Close, Neither Can Sue for Breach of Purchase Contract: Orlando Int'l Hotels, LLC v. Robert J. Guidry Investments, LLC (In re First Farmers Financial Litigation)

Conveyance News

• Borrower Cannot Worm Out of Mortgage Based on Acknowledgment Omission: Central Mortgage Co. v. Seye
• Lender Does Not Get First Lien Without First Proving That Its Mortgage Is on Correct Lot: West RADC Venture 2010-2, LLC v. Indymac Venture, LLC
• Inflated HOA Lien Boomerangs on Filers: 402 Lone Star Property, L.L.C. v. Bradford

Title Insurance

• Insurer With Independent Rights Against Third Party Not Bound by Ruling Against its Insured Although Insurer Paid for Insured's Lawsuit: Commonwealth Land Title Ins. Co. v. R&S Rose Creditor Group
• Appraisal of Phantom Units Not Excluded From Evidence: IDC Properties, Inc. v. Chicago Title Ins. Co.
• Title Insurer Did Not Slander Title and Cannot Be Sued for "Misrepresenting" State of Title: Cao v. BSI Financial Services, Inc.
• Sublease Termination Fee May be Loss Payable Under Leasehold Policy: Morris Builders, L.P. v. Fidelity Nat'l Title Ins. Co.

Agent Focus

• Title Agent Cannot Benefit From Having Induced Competitor to Make Payoff Mistake: McMahon v. Bouchal

Escrow Matters

• Lender May Be Liable for Closing Agent Acts: Emigrant Mortgage Co., Inc. v. Costa
• Jury Trial Waiver in Escrow Instructions Covers Entire Transaction: Highbridge House Ogden LLC v. Highbridge Entities LLC
• Escrowee Liable to Investors for Assisting in Fraud Although Investors Did Not Sign Escrow Instructions: Tafea v. Gateway Title Co.
• Illinois Enforces Escrow Agreement Liability Limitation Provision: Home Healthcare of Illinois, Inc. v. Jesk
• Escrowee Did Not Breach Instructions by Taking Unilateral Direction: In re L & R Development & Investment Corp.

Conveyance News

• Equitable Subrogation Case Roundup