Title Insurance Law Journal

Title Insurance

• Planning Map Coverage Decision Modified: Jericho State Capital Corp. of Florida v. Chicago Title Ins. Co.
• Insurer Cannot Force Arbitration of Bad Faith Claim in Pennsylvania: KEB Hana Bank USA, N.A. v. Fidelity Nat'l Title Ins. Co.

Agent Focus

• Owner Cannot Recover From Title Agent for Search Error Because He Got Land Worth More Than What He Paid: Pearman v. Hale Abstract Co., Inc., 
• Owner Has No Claims Against Title Agent for Unreleased Deed of Trust: Lamey v. Mazel
• Title Agent Sued for Promising Access Rights by Issuing Policy Insuring Access Easement: Fansler v. North American Title Ins. Co.

Escrow Matters

• Escrowee's Statement That Buyer Had Deposited Earnest Money Did Not Cause Owner to Lose a Better Deal: Kostanian v. Ticor Title Company of California
• Foreclosure Trustee Not Required to Sell Land in Separate Parcels: Rainbow Land & Cattle Company, LLC v. First American Title Ins. Co.

Conveyance News

• Indiana Tax Foreclosure Notice Constitutionally Adequate: Indiana Land Trust Co. v. XL Investment Properties, LLC
• Forgery of Deed Must BeProven, Not Inferred: Andrews v. Brown

RESPA Alert

• Kickbacks Support RESPA and Sherman Act Price-Fixing Claims: Kadow v. First Federal Bank
• Class Certified in RESPA Kickback Case Against Bank: Dobbins v. Bank of America, N.A.

Title Insurance

• Insurer Demand Letter to Seller Not Defamatory: Ezeiruaku v. Fidelity Nat'l Title Ins. Co.
• 2021 ALTA Policies Now Ready for Public Comment

Escrow Matters

• Escrowee Protected by Recording Order: Wells Fargo Bank, N.A. v. Jones
• Joint Escrow Instructions Not Altered by Unilateral Instruction: Infinia Asia Co., Ltd. v. Chicago Title Co.
• Escrow Expert Can Opine on Practices But Not Law: McLaughlin v. Langrock, Sperry & Wool, LLP
• Escrow Not Formed by One Person's Subjective Belief: South Avis Realty, Inc. v. Neece

Agent Focus

• Insurance Agent Did Not Promise Wire Fraud Coverage: Johnson v. Smith Brothers Insurance LLC

Conveyance News

• Private Transfer Fee Covenant Not Enforceable: Covenant Clearinghouse, LLC v. Kush and Krishna, LLC
• Equitable Conversion Beats Judgment Lien: Hamilton v. Rottenberg
• Recent Equitable Subrogation Decisions

Title Insurance

• Insurer Had No Duty to Defend Insureds in Suit About Land Not Insured: Rabinowitz v. Chicago Title Ins. Co.
• Insurer NotEstopped From Denying Coverage by Statement That Claim Might Be Covered: Pasha v. Eisele
• Title Agent May Choose to Recover Fees from Indemnitors: Halprin v. Federal Deposit Ins. Corp.
• Claim Payment Does Not Prevent Insured From Claiming to Own Land: Teonard v. Pantich

Escrow Matters

• Buyer Has No Claim Against Bank for Wire Transfer Fraud: Fragale v. Wells Fargo Bank, N.A.
• Escrow Agreement Not Void as and Ultra Vires Act: Mexico Infrastructure Finance, LLC v. Corporation of Hamilton
• Escrowee Did Not Breach Duties byInterpleading Deposited Money: Silver Star Title, L.L.C. v. Marquis Westlake Development, Inc.

Agent Focus

• Corporate Raiding by Ex-Employee is Debt NotDischargeable in Bankruptcy: In re Smith
• Loan Closer Owed No Duty to Borrower: Johnson v. U.S. Title Agency, Inc.
• Neither Recorder Nor Closer Liable for Altered Deed: Olenchick v. Scramling

Title Insurance

• Survey Exception Bars Coverage for Claims of Implied Easements: 1267 Rogers Avenue, LLC v. First American Title Ins. Co.
• Insurer Not Liable for "Coercing" Insured Into Sale of Home: Marceaux v. Tiffany & Bosco, P.A.
• Underwriting Bulletin is a Confidential Trade Secret: Bayview Loan Servicing, LLC v. North American Title Ins. Co.
• Acts of Member Imputed to InsuredLLC to Invoke Exclusion; Insured Suffered No Loss: Mazel v. Las Cruces Abstract and Title Co. (In re Lamey)
• NoAbstractor Liability in Michigan; Policy Did Not Insure Title to Adjoining Alley: Shower Curtain Solutions Limited, LLC v. First American Title Ins. Co.
• Lender That Seeks Loss Measured by Settlement Amount Must Produce Settlement Agreement: Carrington Mortgage Services, LLC v. Ticor Title of Nevada, Inc.

Escrow Matters

• Does D.C.Escrowee Have a Duty to Investigate?: Yudzon v. Sage Title Group, LLC
• Law Firm That Represented Loan Buyer Not an Escrowee: JTREO, Inc. v. Hightower & Associates, Inc.
• Escrowee Owes No Duty to Beneficiary of Seller Trust: Laws v. Laws

Conveyance News

• Judgment Lien Did Not Give Notice Because Name Did Not Match Deed: Vasquez v. LBS Financial Credit Union

Escrow Matters

• Rhode Island Clarifies Practice of Law As To Title and Closings: In re Paplauskas
• California Escrowee Correctly Disclosed Double Escrow: CBA International, LLC v. Nakata

Title Insurance

• Recorded Road Ordinance is an Encumbrance on Title: Jericho State Capital Corp. of Florida v. Chicago Title Ins. Co.
• No Duty to Defend Insured Against Easement That Insured Contracted to Give: Dudek v. Commonwealth Land Title Ins. Co.
• Lender Owes No Duty to Detect and Cancel Forged Trustee's Deed: Dudek v. Commonwealth Land Title Ins. Co.
• Insurer Has No Duty to Inform Insured That Seller Has Been Sued Before: Ukoha v. Provident Title Co.
• Insurer Cannot Recover From Seller for Breach of Special Warranty Deed: Chicago Title Ins. Co. v. Cochran Investments, Inc.
• Insurer Has No Duty to Pay for Insured's Quiet Title Suit: Irma Straus Realty Corp. v. Old Republic Nat'l Title Ins. Co.
• Insurer Subrogated to Insured to Enforce Purchase Agreement Against Seller: First American Title Ins. Co. v. Commerce Associates, LLC

Title Insurance

• Tribal Letter Invokes Duty to Defend Insured: Robbins v. Mason County Title Ins. Co.
• Lawsuit Against Title Agent Precludes Action Against Insurer Based on Same Facts: Cummings v. Stewart Title Guar. Co.
• Tardy Notice Defense Dismissed Because Prejudice Not Proven: Fansler v. North American Title Ins. Co.

Escrow Matters

• Class Certified for Borrowers Who Paid Escrow Fees Higher Than Filed Rates: Wilmot v. First American Title Co.

Agent Focus

• Insurer Not Liable for Agent's Closing Acts, Search Error; Member Cannot Sue on Policy Issued to Entity: Mazel v. Las Cruces Abstract and Title Co. (In re Lamey)

RESPA Alert

• Class Certified in Genuine Title Kickback Case: Edmondson v. Eagle National Bank
• Loan Broker Who Got Kickbacks in Contempt for Violating Settlement: Consumer Financial Protection Bureau v. Klopp
• RESPA Kickback Claim Dismissed Based on Limitations Statute: Obiefuna v. Hypotec, Inc.

Conveyance News

• State Lis Pendenses Do Not Put Buyer of Notice: Forde v. Dew Investments

 Title Insurance

• Insured Did Not Assume or Agree to Lien Priority Conflict: Bank of America, N.A. v. Chicago Title Ins. Co.
• No Duty to Defend Insured Over His Blockade of Road Not on Insured Property: Tritapoe v. Old Republic Nat'l Title Ins. Co.
• Access Lawsuit Not Stayed Because Policy Coverage Case is Pending: Flying T Ranch, LLC v. Catlin Ranch, LP
• Policy and Endorsements Give No Coverage Against Post-Policy HOA Lien: Deutsche Bank Nat'l Trust Co. v. Fidelity Nat'l Title Ins. Co.
• Insurer Entitled to Order Satisfying Arbitration Award on Payment of Award Less Set offs: Good Funds Lending, LLC v. Westcor Land Title Ins. Co.
• Insurer's Subrogation Claims Fail Because Policy Cover Not Attached to Pleadings: Stewart Title Guar. Co. v. Kelly
• Claim Reserve Information Discoverable in Bad Faith Lawsuit: Wells Fargo Bank, N.A. v. Stewart Title Guar. Co.

Escrow Matters

• Vermont Escrowee Can Be Liable for Failure to Disclose Fraud: Qureshi v. People's United Bank
• Insurer Sued in Class Action for Violating Florida Bar Contract by Charging Buyer a Closing Fee: Antao Properties LLC v. First American Title Ins. Co.
• RICO Claim Against Escrowee Dismissed Because Escrow Agent Not Part of Fraud Ring: Choi v. 37 Parsons Realty LLC

Title Insurance

• Loan Policy Loss Limited to Reduction in Security in Property: RCN Capital, LLC v. Chicago Title Ins. Co., 196 Conn.App. 528
• Recoupment by Insurer Foiled by Confused Use of Collateral Source Rule: Otto Baum Company, Inc. v. Süd Family Limited Partnership
• Unrecorded Easements Exception Negates Coverage for Ordinance Limiting Road Use: Munden v. Stewart Title Guar. Co.
• Claimant Not an Insured and Exceptions Negate Coverage: Angelo v. NVR, Inc.
• Subrogated Insurer Lost Right to Dispute Bankruptcy Discharge: In re Beyha

Escrow Matters

• Sale Proceeds in Escrow Not Held for Benefit of Creditor: In re Liddle
• Bidder at Trustee Sales Cannot Rescind Due to Unilateral Mistake: Matson v. S.B.S. Trust Deed Network
• Money Held in Constructive Trust When Escrow Agreement Invalid: Revell v. Burlison Law Group

Conveyance News

• When Can a Bankruptcy Trustee Attack Title in State Court?: Arnot v. ServiceLink Title Co. of Oregon

Title Insurance

• No Mechanic Lien Coverage Under Loan Policy: Hall CA-NV, LLC v. Old Republic Nat'l Title Ins. Co.
• No Coverage for Possible Trespassing Pipe: Harris v. Fidelity National Title Ins. Co.
• Court Adopts Formula for Diminution in Value Due to Trespass: McNulty v. Casero
• Endorsements Do Not Assure Priority Over HOA Lien: HSBC Bank USA, N.A. v. Fidelity Nat'l Title Ins. Co.

Agent Focus

• Agency Purchaser Not Liable for Escrow Acts Performed Two Years Before Sale: Lamey v. Las Cruces Abstract and Title Co.

Escrow Matters

• Premature Delivery of Money Not Gross Negligence as a Matter of Law: Chi Chen v. U.S. Bank, N.A.
• Escrowee Cannot Have Disobeyed Instructions When None Were Given: SASA Investment Holdings, LLC v. Chhatrala
• Tardy Mortgage Satisfaction Class Action Suit Done: Tarquinio v. Tarquinio
• Broker Could Be Liable for Wire Transfer Fraud Loss: Weare v. Bennett Brothers Yachts, Inc.

Title Insurance

• No Duty to Defend Insured Accused of Participating in Forgery Fraud: Security Title Guar. Corp. of Baltimore v. 915 Decatur St NW, LLC
• No Duty to Defend Insured Because Policy Terminated; Insured Has No Malpractice Claim Against Insurer's Claims Counsel: Westcor Land Title Ins. Co. v. Alicea

Escrow Matters

• Escrowee Entitled to Recover Attorneys' Fees from Escrow Principals Escrow: Halprin v. Federal Deposit Ins. Corp.
• Escrow Indemnity Provision Does Not Negate Escrowee's Liability for Breach of Instructions: R&J Oil v. R.C. Rod
• Law Firm Owed No Duty to Non- Client Investors for Wired Money: Meisels v. Fox Rothschild LLP
• Escrowee May Sue Escrow Principal on Post-Closing Tax Payment Escrow: Stewart Title Ins. Co. v. New York Title Research Corp.
• Buyer Not Required to Prepay Loan Until Closing Consummated: 295 Collins, LLC v. PSB Collins, LLC

Agent Focus

• Personal Guaranty of Agency Contract Enforceable After Cancellation: Chicago Title Ins. Co. v. Brookwood Title Agency, LLC

Conveyance News

• Tardy Mortgage Satisfaction Class Action Suit Done: Rimmer v. CitiFinancial, Inc.
• Easement Containing No Legal Descriptions Does Not Impart Notice: MAC Properties L.P. v. D.D. Dunlap Companies, Inc.

Escrow Matters

• Contributory Negligence Not a Defense to Breach of Fiduciary Duty Claim: Federal Deposit Ins. Corp. v. Chicago Title Ins. Co.
• Escrowee Is Not an Agent of the Principals: In re Munoz
• Escrowee Owed No Duty to Purchaser Who Was Not a Principal of the Escrow: Carter Development of Massachusetts, LLC v. Howard

Agent Focus

• New York Inducement Regulation Upheld, Again: New York State Land Title Ass'n, Inc. v. New York State Dep't of Financial Services

Title Insurance

• Title Exception is a Business Decision, Not a Legal Opinion: Mattlage v. Dividend Solar Finance, LLC,
• Duty to Defend Limited to Covered Claim: Cherry Hills Farm Court, LLC v. First American Title Ins. Co.
• Insured Assumed or Agreed to Take Title Subject to Option Rights and Lease: In re Pazzo Pazzo, Inc.
• Insurer's Malpractice Suit Against Defense Counsel Fails: Old Republic Nat'l Title Ins. Co. v. Shulman, Rogers, Gandal, Pordy & Ecker, P.A.
• Fraudulent Concealment Inducing Insurance Coverage Not Sufficiently Pled: Immobiliare, LLC v. Westcor Land Title Ins. Co

Title Insurance

• Policy Reformed to Add Exceptions; Binding on Successor Insured: BAPCO LLC v. Fidelity Nat'l Title Ins. Co.
• Insured Does Not Get to See Law Firm File for Other Insured Represented by Same Lawyers: Hall CA-NV, LLC v. Ladera Development, LLC
• Encroachment Exception Negated Duty to Defend: Pandora Distribution, LLC v. Ottawa OH, LLC
• Lender Insured Sanctioned for Not Sending Company Rep to Mediation: US Bank, N.A., as trustee v. First American Title Ins. Co.
• Policy Does Not Cover Lost Sale: Marceaux v. Baker
• Insurer May Sue on Note After Mortgage Declared Void: Commonwealth Land Title Ins. Co. v. Prado

RESPA Alert

• Postage Stamps are Title Order Kickbacks: Somerville v. West Town Bank & Trust

Agent Focus

• Full Credit Bid Negates Claim Against Title Agency for Escrow Negligence: First Bank of Lincoln v. Land Title of Nez Perce County, Inc.

Escrow Matters

• Extended Limitations Period Applies to Suit Against Escrowee for Altering Deed: Hancock v. Kulana Partners, LLC
• Escrowee Liable for Premature Release of Escrow Deposit: Inmobiliaria Buenaventuras S.A. de C.V. v. Chicago Title Co.