Title Insurance Law Journal

Title Insurance

• Policy Terminated When Property Voluntarily Conveyed: Tithonus Partners II, LP v. Chicago Title Ins. Co.
• Survey Exception Negates Policy Survey Coverage: Watson v. Old Republic Nat'l Title Ins. Co.
• Insurer Liable Because Texas Home Equity Mortgage Is a Fraudulent Lien: Nationstar Mortgage LLC v. Barefoot
• Title Insurer Underwriting Warning NotTortious Interference: Porterfield v. Deutsche Bank Nat'l Trust Co.
• Court Dismisses All Claims By Insured Against Insurer's Claims Counsel: Westcor Land Title Ins. Co. v. Alicea
• Time to Sue Insurer Begins When Facts Discovered, Not When Lawyer Gives Advice: Madhok v. Fidelity Nat'l Title Ins. Co.
• Title Agent's Clearing of Title Did Not Necessarily Bar Claimed Loss: Rutkowski v. Fidelity Nat'l Title Ins. Co.

 Agent Focus

• Underwriter May Have Breached Agency Contract By Turning Over Confidential Data: SJ Abstract v. Old Republic Nat'l Title Ins. Co.

Escrow Matters

• Court Dismisses Lawsuit Bringing Policy Claims Against Escrow Company: Hillcrest Investments, Ltd. v. Chicago Title Co. of Nevada, Inc.
• Exculpatory Clause Does Not Bar Negligence Claim AgainstEscrowee: Browne & Price, P.A. v. Innovative Equity Corp.

Title Insurance

• No Duty to Fix or Indemnify Against Title Defect Cured by Passage of Time: Morris Builders, L.P. v. Fidelity Nat'l Title Ins. Co.
• Covenant Not to Sue Also Bars Action Based on Assigned Claims: ALR Oglethorpe, LLC v. Fidelity Nat'l Title Ins. Co.
• Policy Terminates on Transfer to Trustee: Green v. Chicago Title Ins. Co.
• Loss of Futile Development Rights Results in Zero Policy Loss Payable: IDC Properties, Inc. v. Chicago Title Ins. Co.
• Insurer and Borrower Made Enforceable Settlement To Repay Loan In Part: First American Title Ins. Co. v. Sadek
• Fraud Victim Recovery Not Limited by Criminal Restitution Judgment: Commonwealth Land Title Ins. Co. v. Shah

Escrow Matters

• Mishandling of Escrow Is a Racketeering Enterprise: Willims v. AmeriTitle, Inc.
• Claims Against Escrowee Dismissed in Illinois Investor Fraud Case:  Amran Property Investments, LLC v. Fidelity Nat'l Title Group, Inc.

Agent Focus

• E&O Carrier Must Defend Agent Accused of Negligence in Insuring Business Entity Theft Loans: Houston Specialty Inc. Co. v. Fontecilla
• E&O Carrier Not Required to Defend Agent Sued for Wrongly Charging Closing Fee: RLI Ins. Co. v. Baywalk Title Inc.

Title Insurance

• Ninth Circuit Mangles Policy Definition of Public Records: Munden v. Stewart Title Guar. Co.
• Texas Boundary Line Exception Negates Duty to Defend Boundary Dispute: Zarkasha Enterprise, Inc. v. Old Republic Nat'l Title Ins. Co.
• Insurer May Add Fraud and Rescission Claims in Policy Dispute Based on Facts Withheld by Insured: Commonwealth Land Title Ins. Co. v. 830 Eddy Street, LLC

Agent Focus

• Broker Gets No Defense When Sued by Customer About Wire Transfer Fraud: Helms v. Hanover Ins. Group Inc.

Escrow Matters

• Claims Against Escrowee By Man Who Created Fake Loans Are Dismissed Due to Unclean Hands: Meridian Financial Services, Inc. v. Phan

Conveyance News

• TOD Deed of Homestead Valid Though Spouse Did Not Join in Signing:  Chambers v. Bringenberg
• Buyer Took Title Subject to Mortgage and Unrecorded Loan Modifications: 2000 Presidential Way, LLC v. Bank of New York Mellon

Title Insurance

• Expiration of Subdivision Plan Does Not Invoke Policy Coverages: Community Bank v. Fidelity Nat'l Title Ins. Co.
• Insured Suffers No Loss From Title Defect Cured By Time: Stewart v. JP Morgan Chase Bank, N.A.
• Policy Arbitration Provision Not Enforceable: Ashby v. Kern

Escrow Matters

• Escrow Arbitration Agreement Does Not Cover Malpractice Claim: Dakota Oil Processing, LLC v. Hayes
• Borrower Has No Claims Against Short Sale Closer: SMS Financial XXIX, LLC v. Meakins
• Law Firm Not Vicariously Liable For Escrow Acts of Lawyer: Matter of 3 Star Properties, L.L.C.

Conveyance News

• Seller-Borrower May Enforce Prompt Mortgage Satisfaction Act: Jackson v. Pennymac Loan Services
• Ownership Claim Based on Unrecorded Deed Makes Title Unmarketable: Bowers v. Estate of Mounger
• Use Statement on Plat Not a Restriction Imposed by Owner: Carpenter Braselton, LLC v. Roberts

Title Insurance

• Montana High Court Agrees That Legislature OverturnedAbstractor Liability: Phipps v. Old Republic Nat'l Title Ins. Co.
• Recorded Building Limitation Is Excluded Governmental Use Regulation: JBGR, LLC v. Chicago Title Ins. Co.
• Claimed Access Right Does Not Substitute for Access Endorsement: In re Emerald Grande, LLC
• Claims by Insurer Against Surveyor Meet Federal Jurisdictional Minimum: Westcor Land Title Ins. Co. v. ND Remy Associates

Escrow Matters

• Wiring of Money From State Does Not Give Federal Court in That State Jurisdiction Over Escrow Company: WFG Nat'l Title Co. of California v. Schultz
• Inclusion of Colorado Resident in Escrow Agreement Did Not Give Colorado Court Jurisdiction Over UK Citizen: Patentbooks, Inc. v. Sowerby
• Escrow Agreement Prevailing-Party Fee Provision Applies to Fraud Claim Against Seller: Kim v. Lee

RESPA Alert

• Plaintiff Waited Too Long to Flip Suit From State Claims to Federal RESPA Claim: Munro v. First American Title Ins. Co.

Conveyance News

•  Taxpayer Receives Excess From Forfeiture Sale, Leaving Real Estate Taxes Unpaid: United States v. Close

Title Insurance

• Coverage For CondominiumDeclarant Rights Clarified: IDC Properties, Inc. v. Chicago Title Ins. Co.
• Possession Exception Negates Coverage for Encroaching Fence; Voluntary Settlement Provision Enforced: Murphy v. First Am. Title Guar. Co.
• Insurer Not Required to Defend Insured in Suit by True Owner To Turn Over Ownership: Rivera v. Fidelity Nat'l Title Ins. Co.

Agent Focus

• Mineral Title Exclusion Defeats E&O Coverage: Gorsha v. Greenwich Ins. Co.

Escrow Matters

• Wire Transfer Fraud Case AgainstEscrowee May Continue: Mago v. Arizona Escrow & Financial Corp.
• California Double Escrow Disclosure Case Proceeds: Ahern v.Chicago Title Co.
• Escrowee Cannot Be Sued in Michigan Just Because Escrow Party is Based in That State: Revelation Yogurt, LLC v. Kline Law Group, P.C.
• Law Firm Closer Must Return Loan Money to Lender After Non-Closing: Nevarez v. USAA Federal Savings Bank
• Plaintiff in Escrow Case Can Sue for Cost of Renting New Apartment: Tung v. Chicago Title Co.

Conveyance News

• Purchase Contract Did Not Obligate Seller to Give Gap Indemnity:  JTB Properties, LLC v. Zwillenberg

Title Insurance

• Insurer May Defend Covered Counts Only; Fraud Claims Against Prior Owner Do Not Invoke Exclusion 3(a): Badger Mining v. First American Title Ins. Co.
• Florida Decision Gives Rare Glimpse Into Title Plant Valuation Method: In re ATIF, Inc.

• Insurer Not Required to Pay Judgment AgainstInsureds Based on Their Conduct in Interfering With Easement Use: Hughes v. First American Title Ins. Co.

Escrow Matters

• Lawyer's Radio Comments AboutEscrowee Not Protected Speech: Close It! Title Services, Inc. v. Nadel
• Lien Release Penalty Law Applied to Lender That Failed to Release Money Judgment: Capital One Bank (USA), N.A. v. McWaters

Conveyance News

• Insured Charged With Insurer's Knowledge of Title Records; Quiet Title Judgment Not Enforceable: Tsasu LLC v. U.S. Bank Trust, N.A.
• New Jersey Court Unwinds Complex Title Raider Plan to Seize Government Land: Phoenix Pinelands Corp. v. Davidoff
• Borrower Keeps Title to Mobile Home Despite Foreclosure of Land on Which It Is Affixed: Wright v. Miller

Title Insurance

• No Mechanic Lien Coverage Under Loan Policy: Hall CA-NV, LLC v. Old Republic Nat'l Title Ins. Co.
• Lender Voided Mechanic Lien Coverage by Failing to Pay Out All Committed Construction Money: Fidelity Nat'l Title Ins. Co. v. Osborn III Partners LLC
• Exclusion 3(a) Applies to Both Easement and Use of Pipes For Which Easement Was Granted: Dudek v. Commonwealth Land Title Ins. Co.
• Insurer Has Valid Unjust Enrichment Claim Against Borrower: General Star Indemnity Co. v. First American Title Ins. Co. of Napa

Escrow Matters

• Rate Filing Law Does Not Protect Insurer From Suit Based on Rates Not Filed With State: Villanueva v. Fidelity Nat'l Title Co.
• Claims Against Bank for Wire Transfer Fraud Fail: Pedersen v. MidFirst Bank
• Escrow Officer Cannot Force Arbitration of Dispute Under Purchase Contract or Policy: DiTucci v. Ashby

Agent Focus

• Fact Question Remains as to Cancelled Agent's Apparent Authority to Issue Policy: Schwartz v. WFG Nat'l Title Ins. Co.

Closing Protection Letters

• Insurer That Cancelled Agent Before Closing Has No CPL Liability: First IC Bank v. North American Title Ins. Co.

Title Insurance

• Lender Cannot Suffer Loss After Loan Paid in Full: Delhoyo v. Stewart Title Guar. Co.
• Policy Does Not Pay for Amending Plat to Modify Ownership Regime: Villages at Country Club, LLC v. Chicago Title Ins. Co.
• Suit About Zoning Endorsement Brought Too Late: Millennium Group I, LLC v. First American Title Ins. Co.

Escrow Matters

• Money Not Held in Escrow When No Escrow Instructions Were Signed: Porters Neck Limited, LLC v. Porters Neck Country Club, Inc. (In re Porters Neck Country Club, Inc.)
• Some Claims Dismissed in 1031 TIC Escrow Suit: Mooney v. Chicago Title Co.
• Escrow Company Did Not Guarantee Performance of Escrow: Sakthiveil v. Clear Title Agency of Arizona LLC

Conveyance News

• Washington Race Restriction Law Does Not RequireExpungement of Records: May v. Spokane County
• Buyer Breached Contract by Refusing to Close After Failing to Make Title Objection: Red Star Group, LLC v. 1933 Lyndale, LLC
• Loan Application Rejections Do Not Make Title Unmarketable: Angelo v. NVR, Inc.

Title Insurance

• Access Coverage Not Invoked When Insured Parcel Abuts Public Street: Chicago Title Ins. Co. v. Jen
• Insurer Has No Duty to Defend Insureds Sued for Trespass; Discovery Response Also Does Not Invoke Duty to Defend: Safeco Ins. Co. of America v. Fidelity Nat'l Title Ins. Co.
• Georgia Court Misunderstands Nature of Closing Protection Letter: CoreVest American Finance Lender LLC v. Stewart Title Guar. Co.
• Possession Exception Negates Duty to Defend Adverse Possession Lawsuit: Melamed v. First American Title Ins. Co.

Escrow Matters

• CaliforniaEscrowee Cannot Enforce Bank's Payoff Letter: Rubie's, LLC v. Wells Fargo Bank, N.A.
• Closing Attorney Must Trace Money He Claims Was Stolen From Escrow Account: Campbell v. Riggs
• Escrow Principal Cannot Deny Escrow Exists Because Instructions Were Delivered Late: Bar Kochba Botach v. Nibo

Agent Focus

• Cancelled Agent Who Issued Fake Policies Must Serve Sentence: United States v. Cunningham
• Conviction Affirmed for Woman Who Impersonated a Real Title Agency to Close Fraudulent Loans: United States v. Hernandez
• Court Will Not Decide if E & O Carrier is Liable for Indemnity Until Suit Against Agent is Decided: RLI Ins. Co. v. Baywalk Title Inc.

Title Insurance

• Homeowner's Policy Does Not CoverInsureds' Harassment of Neighbors: Horwood v. North American Title Ins. Co.
• Insurer's Recoupment Against Borrower Thwarted by Statute of Limitations: First American Title Ins. Co. v. Holohan
• Nevada Court Rejects Snap Removal ofHOA Lien Coverage Suits: 
  • Wells Fargo Bank, N.A. v. Fidelity Nat'l Title Group, Inc.
  • U.S. Bank, N.A. v. Fidelity Nat'l Title Group, Inc.
  • Deutsche Bank Nat'l Trust Co. v. Fidelity Nat'l Title Group, Inc.,
  • HSBC Bank USA, N.A. v. Fidelity Nat'l Title Group, Inc.
  • HSBC Bank USA, N.A. v. Old Republic Nat'l Ins. Group, Inc.
• Insurer That Buys Loan and Sues Owner is an Assignee, Not a Subrogee: Melancon v. Commonwealth Land Title Ins. Co.
• Insured's Claim Based on "Lost" Property Precluded by Prior Judgment Declaring That Insured Lost Nothing: Cummings v. Stewart Title Guar. Co.

Escrow Matters

• Bank Not Liable for Wire Transfer Fraud: Attisha Enterprises, Inc. v. Capital One, N.A.
• Title Agent Has No Insurance Coverage for Wire Transfer Fraud: Authentic Title Services, Inc. v. Greenwich Ins. Co.
• Overbroad Escrow Exculpatory Provision Invalid: Chen v. U.S. Bank¸ N.A.
• Entity Theft Requires Proof For Deed and Mortgage To Be Voided: Lucky's Real Estate Group, LLC v. Powell
• Court Refuses to Order Fraudsters to Deliver Money to Clerk: Freedom Mortgage Corp. v. Madariaga

• Escrow Party Must Prove Contract Was Formed to Get Damages for Claimed Breach: Jatho v. Northeast Title Co.

Title Insurance

• Proposed Insured Entitled to Disclose Material Risk to Preserve Policy Coverage: AB Stable VIII LLC v. MAPS Hotels and Resorts One LLC
• Federal Court Declines to AddressAbstractor Liability in Washington: Covington 18 Partners, L.L.C. v. Lakeside Industries, Inc.
• Loss Amount Disputed Through Dueling Appraisal Methods: Wells Fargo Bank, N.A. v. Stewart Title Guar. Co.
• Use Limitation Coverage ofHomeowner's Policy Not Invoked: Batstone v. Chicago Title Ins. Co.
• Owner's Policy Terminated on Deed From Insureds to Their LLC:

• Pak v. First American Title Ins. Co.
• PennyMac Holdings, LLC v. First American Title Ins. Co., 2020 WL 7024845 (Md.Sp.App.) (unpublished)

Agent Focus

• Closing Letter Recording Fee Class Certification Rejected: Chassen v. Fidelity National Financial, Inc.