Title Insurance Law Journal

Title Insurance

• Oil Leak Notice is a Defect in Title, Causing Large Loss: Old Republic Nat'l Title Ins. Co. v. RM Kids, LLC
• Policy Limits Access Judgment Reversed: Rio Mesa Holdings, LLC v. Fidelity Nat'l Title Ins. Co.
• Subrogated Insurer May Collect Against Loan Guarantor: Uddin v. Cunningham
• Insurer That Changed Legal on Deed of Trust Not Liable for Constructive Fraud: Carver v. RBS Citizens
• Insurer Gets Judgment Against Forger: First American Title Ins. Co. v. Chavannes
• Title Policy May Be a Financial Record, But Can Be Produced Under Subpoena: Nationwide Investments, LLC v. Pinnacle Bank

Escrow Matters

• Escrowee Entitled to Full Formulaic Fee Although Escrow Did Not Close: Bong Je Choi v. Prima Escrow, Inc.
• Escrow Disbursement to be Made Only After Final Order Entered: Flandreau Santee Sioux Tribe v. Terwilliger

RESPA Alert

• RESPA Affiliated Business Claim Dismissed: Cantrell v. New Penn Financial, LLC

Conveyance News

• Court Thwarts Attempt to Use Torrens to Undo Foreclosure: Matter of Warren

Title Insurance

• Survey Exception Negates Claim Based on Abandoned Driveway Easement: Haley v. Hume
• No Coverage for Mortgage Excepted in Policy: Fo Ge Investments LLC v. First American Title Ins. Co.
• No Coverage for Connection Fee That Was Not a Lien: Concepts TV Productions, LLC v. Sharpe
• Borrower Has No Rights Under Loan Policy: Dillon v. Bayview Loan Servicing
• Borrowers Have No Defenses to Insurer Subrogation Claim When Wrong Loan Paid Off: Fidelity Nat'l Title Ins. Co. v. Vontell
• Coverage Suit Dismissed Because Wrong Insurer Served: Faghi v. National Title Ins. of New York, Inc.

Agent Focus

• Attorney Owner of Title Agency May Have Been Seller's Attorney in Drafting Deed: Gorsha v. Clark

Escrow Matters

• Escrowee Faces Contempt Sanctions for Not Turning Over Escrowed Money Per Court Order: Securities and Exchange Commission v. Champion-Cain

Conveyance News

• Title Commitment Imparts Actual Knowledge of Recorded Instrument: Cosentino v. Kunkle

Title Insurance

• The Rationale Behind the Date of Loss Under Owner's and Loan Title Insurance Policies: Bushnell Nielsen, Editor
• Seller Church May Owe Insurer for Taxes Imposed After Property Placed Back on Tax Roll: Title Resources Guar. Co. v. The Lighthouse Church & Ministries
• Law of Property Situs Controls Right to Sue for Bad Faith: Buhl Building, L.L.C. v. Commonwealth Land Title Ins. Co.

Escrow Matters

• Delayed Return of Escrowed Money Leads to Host of Claims: Appel v. Boston Nat'l Title Agency, LLC
• Attorney Closer Personally Liable for Assisting in Loan Fraud: Fifth Third Mortgage Co. v. Kaufman
• Escrow Claims Filed Late; Could Have Been Discovered in Time: Sky Station Holdings I, LP v. Fidelity Nat'l Title Ins. Co.

Conveyance News

• Oregon Supreme Court Tempers Test for Reformation of Deed of Trust: Troubled Asset Solutions, LLC v. Wilcher

Title Insurance

• No Duty to Defend Insured in Lawsuit About Wall Not on Insured Parcel: 631 North Broad Street, LP v. Commonwealth Land Title Ins. Co.
• Fraud Claims Survive Against Agent for Undisclosed Senior Deed of Trust: Steele v. Title365 Company, 2019 WL 2912502 (Cal.App. 4 Dist.)
• Policy Does Not Insure Title to Unwanted Structure: Pandora Distribution, LLC v. Ottawa OH, LLC
• Policy Does Not Insure That Parcel Touches Lake Shore: Schiller v. Fidelity Nat'l Title Ins. Co.

Escrow Matters

• Duty to Release Deed of Trust Missing From Payoff Lawsuit: Rubie's LLC v. First American Title Ins. Co.
• Making Lenders Accountable When Loans Are Paid Off: Title Solution Services, Inc. v. Carrington Mortgage Services, LLC

Agent Focus

• Colorado Enforcement Suit Against Law Firm and Title Agent a Total Bust: State ex rel. Weiser v. Castle Law Group, LLC
• Lender Can Require Use of Title Agent on Property Sales: Wenig Saltiel, LLP v. Specialized Loan Servicing, LLC

Conveyance News

• Unread Title Commitment Imparts Notice: Sides v. Saliga
• Recent Equitable Subrogation Decisions

Title Insurance

• Insured Lender Gets Equitable Subrogation When Insurer Pays Off First Lien: 2977 Camino Las Palmeras, LLC v. Deutsche Bank Nat'l Trust Co.
• Insurer May Sue Lender for Oral Promise to Subordinate Lien: WFG Nat'l Title Ins. Co. v. Kavac Holding Company
• Insurer Has No Duty to Defend Insured Sued for Fraud Concerning Post-Policy Encroachments: Mortazavi v. Federal Ins. Co.

Agent Focus

• Tax Foreclosure Title Search Fees Reasonable: Brown v. Tax Ease Lien Servicing, LLC
• Agent Cannot Recoup From Contract Assignors for Forged Deed: Fidelity Nat'l Title Ins. Co. v. Assurance Abstract Corp.

Escrow Matters

• Escrowee Not Wrong in Delivering Condo Purchase Deposits to Developer for Construction: Streambend Properties II, LLC v. Ivy Tower Minneapolis LLC
• Disgruntled Seminar Attendees Claim Double Escrows Are RICO Violations: Just Us Realtors, LLC v. Nudge, LLC
• Double Escrow Middle Man Sues for Interference With Contract Rights: Ramji v. 6100 Clarkson, L.P.
• Escrow Claims Based on Corrective Deed Not Dismissed: Tison v. First American Title Ins. Co.
• Escrow Money Must Be Released When Claim Notice Submitted Late: Drury v. Poblocki Holdings, LLC

Agent Focus

• Bank Not Off Hook in Entity Theft Mortgage: Elm Cabin John, LLC v. United Bank

Title Insurance

• Policy Does Not Cover Nevada HOA Super-Priority Lien: Wells Fargo Bank, N.A. v. Commonwealth Land Title Ins. Co.
• No Duty to Defend Deed Alteration Lawsuit: Queens Organization, LLC v. First American Title Ins. Co.
• Insurer Cannot Recover Identity Theft Losses From Third Parties: Old Republic Nat'l Title Ins. Co. v. JM Bullion, Inc
• Title Insurer Brings Timely Action Against Surveyors: Commonwealth Land Title Ins. Co. v. KCI Technologies, Inc.
• Insurer Collects From Guarantor as Subrogee and Assignee: Uddin v. Cunningham

Conveyance News

• Pennsylvania Does Not Mandate Recording of Mortgage Assignments: MERSCORP, Inc. v. Delaware County

RESPA Alert

• RESPA One-Year Limitations Period Tolled Despite Substantial Publicity: Edmonson v. Eagle Nat'l Bank

Escrow Matters

• Agent May Be Liable for Not Recording Easement in Time: Muco v. Sadiku
• Fraudulent Reconveyance Not Effective: De Hoog v. Wells Fargo Bank

Title Insurance

• Insured Created Title Claim Based on Agreement Signed by Insured: 3 West 16th Street, LLC v. Commonwealth Land Title Ins. Co.
• Effects of Failed Development Do Not Invoke Policy Coverage: Northern California Community Development Corp. v. First American Title Ins. Co.
• Title Insurer Gets No Subrogation Against Taxpayer's Heir: United States v. Hall Family Trust Dated June 8, 2001
• Policy Lawsuit Not Ripe Until Claim Made: Lennen v. Marriott Ownership Resorts, Inc
• No Policy Coverage for Code Violations and "Falsified" Survey: Culley v. Bank of America
• Policy Limits Payment Ends Coverage; No Search Negligence in Arkansas: Friedeberg v. Bullard
• Discovery Rule Not Used to Delay Suit Over Recorded Instrument: Han Realty Corp. v. Bank of America

Agent Focus

• Agent Liable to Buyer For Legal Description Mix-Up: Tyler Title Company, LLC v. Cowley

Escrow Matters

• Illinois Double Escrow Case Decided: Federal Deposit Ins. Corp. v. Chicago Title Ins. Co.

Conveyance News

• Federal Tax Lien Imparts Notice Despite Misspelling: United States v. Z Investment Properties, LLC

Agent Focus

• Negligence Claim Against Agent Not Barred by Time: Fansler v. North American Title Ins. Co.

Title Insurance

• Lender May Sue Insurer for Denying Claim Based on Mortgage Recorded Against Wrong Parcel: S. Bank, N.A. v. HLC Escrow, Inc.
• Changes in Unrecorded Plat May Invoke Policy Coverage: Loflin v. BMP Development, LP
• Insured's Lawsuit Against Coverage Counsel Dismissed: Sammy v. Haupel
• Seller Cannot Sue Title Company Twice for Failure to Except Judgment Against Her: Williams v. Stewart Title Guar. Co

Escrow Matters

• Four Dollar Recording Fee Overcharge Violates Kansas Law: CitiMortgage, Inc. v. White
• Escrowee Liable for Obeying Forged Escrow Amendment: Penklor Properties LLC v. Buehler
• Escrowee Not Liable for Inflated Appraisals: Saleh v. Hasan Merchant
• Sellers May Be Clients of Lawyer Hired by Title Company to Draft Deed: Gorsha v. Clark

Title Insurance

• Creditors' Rights Exclusion Enforced, Reversing 2017 Utah Decision: Banner Bank v. First American Title Ins. Co.
• No Coverage When Policy Excepts One of Two Easement Instruments: Beaudin v. Stewart Title Guar. Co.
• Borrower May Not Bring Claims Based on Loan Policy: Watson v. State of Nebraska
• Access Dispute Not Clearly a Post-Policy Matter: Buroker v. Phillips

Agent Focus

• Agent Not Excused From Reading Deeds of Trust as Part of Title Exam: Stewart Title Guaranty Co. v. Closure Title & Settlement Co.
• Seller Title Disclaimer Does Not Absolve Title Agent for Search Error: Papunen v. Bay Nat'l Title Co.
• Agent E & O Policy Does Not Cover Claim Made After Policy Termination: JPMorgan Chase Bank

Escrow Matters

• Economic Loss Doctrine Does Not Bar Intentional Tort Claims Against Escrowee: Bates Energy Oil & Gas v. Complete Oilfield Services
• Bank That Aided Wire Fraud Not Off the Hook: Thuney v. Lawyers Title of Arizona, Inc.

RESPA Alert

• Real Estate Broker Kickback Class Actions Fall Under Purchase Contract Arbitration Provision: Virgilio v. Pickford Real Estate, Inc

Title Insurance

• Insurer Subrogee Obtains Fraud Judgment Against Mortgage Release Forgers: Chicago Title Ins. Co. v. Union Avenue Holding, LLC
• Trial Required on Coverage for Parcel Accidentally Included in Deed and Policy: Fidelity Nat'l Title Ins. Co. v. Wooden
• New York Anti-Kickback Regulation Mostly Affirmed: New York State Land Title Ass'n, Inc. v. New York State Dep't of Financial Services
• Borrower Has No Claim Under Loan Policy: Watson v. State of Nebraska
• Seller Railroad Not Required to Pay Insurer Back for Failure of Title: 212 Marin Boulevard, LLC v. Chicago Title Ins. Co.
• Treasury Secretary Asked to Tell Congress That Title is not Insurance: Klein v. Mnuchin
• Loan Policy Suit Stayed Until Lien Priority Established: Johnson v. North Dakota Guar. and Title Co

Escrow Matters

• Escrowee Entitled to Interplead Money and Walk From Escrow: First American Title Ins. Co. v. Cumberland Farms
• Customer in Escrow Litigation May Not See Account Entries About Others: Appel v. Boston Nat'l Title Agency, LLC

Agent Focus

• Negligence Standard in Agency Contract Enforceable: Fidelity Nat'l Title Ins. Co. v. Pitkin County Title, Inc
• Expert Opinion About Insurance Requires Scientific Method: FCOA, LLC v. Foremost Title & Escrow Services, LLC

Conveyance News

• Later Lender May Not Take Free of Mortgage Released by Forged Instrument: CitiMortgage, Inc. v. Porter

RESPA Alert

• Plaintiffs Who Were Not Overcharged Have No Standing to Sue Under RESPA: Baehr v. Creig Northrop Team, P.C.

Title Insurance

• California Title Companies Cannot Be Sued for Elder Abuse: Carr v. Chicago Title Ins. Co.
• No Duty to Defend Insured in Lawsuit About Land Not Insured: Casero v. Chicago Title Ins. Co.
• Policy and Negligence Claims Time Barred: 21st Mortgage Corp. v. Chicago Title Ins. Co.
• Mistaken Inclusion of Land in Policy Not a Basis for Abstractor Liability: Wheaton Theatre, LLC v. First American Title Ins. Co.
• SBA Not Immune From Suit for Failure to Release Deed of Trust: Rubie's LLC v. Wells Fargo Bank
• Lawsuit Against Notary's Surety Brought Too Late: Fidelity Nat'l Title Ins. Co. v. Western Surety Co.
• Unrecorded Easement Exception Negates Duty to Defend: Seilham v. Commonwealth Land Title Ins. Co.

Agent Focus

• Title Agent Not Negligent in Preparing Legal Description for Deed: Frye v. Monarch Title of Northern Missouri

Escrow Matters

• Deed of Trust Trustee Owes No Duty to Creditor: Shankar v. Chu

Title Insurance

• Recorded Building Limitation Is Excluded Governmental Use Regulation: JBGR LLC v. Chicago Title Ins. Co.
• Connecticut Unfair Practices Act Claims Kicked: Harrigan v. Fidelity Nat'l Title Ins. Co.
• Case Stayed While Separate Action Making Same Claims is Appealed: Williams v. Stewart Title Co.
• Insurer Can Recover From Life Insurance Policy: In re Brookes

Escrow Matters

• Arbitration Provision in Escrow Instructions Not Binding on Creditor: JAKS Properties, LLC v. St. Croix Hospice, LLC
• Lender Obligated to Release Equity Loan Deed of Trust: Deutsche Bank National Trust Co. v. E*Trade Bank
• Claims Against Escrowee Dismissed Because Earnest Money Delivered to Correct Party: Second Ave. Realty LLC v. 1355 Second Owner LLC
• Escrow Prevailing Party Attorney Fee Provision Enforced: Wei v. Culture Escrow, Inc.
• Member of Entity Cannot Sue Escrowee Directly: Home Title Co. of Maryland, Inc. v. LaSalla
• Minor Closing Errors Did Not Cause Losses: Meyers v. TrustTexas Bank

RESPA Alert

• Filed Rate Doctrine Bars Captive Reinsurance Class Actions: Patel v. Specialized Loan Servicing, LLC