Title Insurance Law Journal

Title Insurance

• Nevada Homeowner Assessments Became Liens When Levied; No Policy or Endorsement Coverage: Deutsche Bank Nat’l Trust Co. as Trustee v. Fidelity Nat’l Title Ins. Co.
• No Conflict of Interest when Insurer’s In-House Litigation Group Represents One Insured Adverse to Another Insured: Ash Development, LLC v. Fidelity Nat’l Title Ins. Co.
• Claims Manual and Underwriting Bulletin Sealed as Confidential: HSBC Bank USA, N.A. v. Chicago Title Ins. Co.
• Exclusion 3(a) Bars Coverage for Agreement Signed by Insured That Caused His Title to Fail: Salas v. Commonwealth Land Title Ins. Co.
• Policy Arbitration Provision Not Enforceable Because “Not Usual”: Fucci v. Bowser

Agent Focus

• Nevada Court Rejects E&O Carrier’s Coverage Defenses: First American Title Ins. Co. v. ACE American Ins. Co.

Escrow Matters

• Escrowee Not Liable for Seller’s Failure to Deliver Water Rights: Anderson v. Reliant Title Agency, LLC
• Court Dismisses Closer’s Wire Transfer Fraud Action Against Paying Bank: Cosmopolitan Title Agency, LLC v. JP Morgan Chase Bank
• Bank Could Be Liable Based on Comfort Letters Issued to Non-Client: Metrocity Holdings, LLC v. Bank of America
• Seller’s Signing of Closing Statement Barred His Claim That Title Agent Coerced Him to Make Inflated Loan Payoff: Kelly v. Jackson

Title Insurance

• Insurer Has Good Claim of Non[1]Cooperation Against Insureds Who Refused Offer of Corrective Deed: Chicago Title Ins. Co. v. Schrader
• Exclusion 3(a) Negates Duty to Defend Insured Accused of Obtaining Title by Fraud: NY-32 Realty Group, Inc. v. Westcor Land Title Ins. Co.
• Insurer’s Knowledge of Zoning Code Action Might Invoke Zoning Violation Notice Coverage: Sachtleben v. Alliant Nat’l Title Ins. Co.
• Loan Payoff Indemnity Enforceable: Westcor Land Title Ins. Co. v. McCarthy

Agent Focus

• Seller, Not Title Agent, Has Duty to Deliver Good Title: Mathias v. Stewart Title Co.
• Insurer Gets Default Judgment Against Cancelled Agent and Injunction Prohibiting Issuance of Commitments and Policies: WFG Nat’l Title Ins. Co. v. Paradise Settlement Services, LLC

Escrow Matters

• Escrowee Could Be Liable For Forged Operating Agreement Based on What It Knew Two Years Earlier: Capital River Enterprises, LLC v. Abod
• Escrowee May Demand Arbitration Under Provision in Purchase Agreement It Did Not Sign: First American Title Insurance Company v. Barron
• Escrowee Had No Duty to Disclose Information to Loan Assignee: Norlund v. Old Republic Title Co.
• New York Court Has Jurisdiction Over Alleged Wire Fraudster: Jakob v. JPMorgan Chase Bank, N.A.

Title Insurance

• Oklahoma Court Says Policy Insures Abutter’s Rights: Riverbend Land, LLC v. First American Title Ins. Co.
• Policy Does Not Cover Business Expenses or a Post-Policy Ordinance: Munden v. Stewart Title Guar. Co.
• Insurer’s Recoupment Action Against Sellers Moves On Because Insurer Made Payment Demand on Seller: Chicago Title Ins. Co. v. Delgado
• Court Does Not Need to Quiet Title to Rule on Policy Claim About Defective Title: PHH Mortgage Corp. v. Old Republic Nat’l Title Ins. Co.
• Seller May Not Assert Lack of Knowledge and Search Negligence as Defenses to Insurer’s Breach of Warranty and Unjust Enrichment Claims: Fidelity Nat’l Title Ins. Co. v. Corrasco

Agent Focus

• Title Agent May Be Liable to Customer for Wire Fraud Enabled by Agent’s Hacked Email Account: 333 8th Street, NE, LLC v. Turnkey Title, LLC

Escrow Matters

• Closing Company Owes No Duty to Owner Claiming Deed Was Forged: Sandles v. Fidelity Nat’l Financial, Inc.
• Judgment Creditor May Not Sue Title Agent for Failing to “Disclose” Judgment: Hillary Developer, LLC v. Security Title Guar. Corp. of Baltimore
• Borrowers May Sue on Lender Construction Inspection Reports Despite Disclaimers: Kastl v. Associated Bank N.A.

Conveyance News

• Building Code Violation is Not an Encumbrance on Title: Galvan v. Poon

Title Insurance

• Insured Suffered No Loss Due to Invalid Lease: VBK Santoshi, LLC v. Chicago Title Ins. Co.
• Road Maintenance Lawsuit Not a Covered Encumbrance on Title: Snug & Monk Properties, Inc. v. First American Title Ins. Co.
• Insureds Failed to Cooperate by Concealing Facts; Exclusion 3(a) Applies: Cherberg v. Fidelity Nat’l Title Ins. Co.
• Insurer Recoups Against Insured Property for Judgment Debt: WFG Nat’l Title Ins. Co. v. Martinez
• Insurer May Waive Coverage Defenses in Utah: Cottonwood Acres, LLC v. First American Title Ins. Co.
• Exclusion 3(a) Applies Because Insured Bought Subject to Mortgage and Well Before Policy Was Issued: Afghani v. Old Republic Nat’l Title Ins. Co

Escrow Matters

• Government Breached Escrow Terms; Escrowee Did Not: Mexico Infrastructure Finance, LLC v. Corporation of Hamilton
• Fifth Amendment Limits Documents That Escrowee Must Produce: Benthos Master Fund, Ltd. v. Etra
• Completion Escrow Work Not Finished: Dollard v. Coen
• Wire Transfer Fraud Release Read Broadly: Vale Rive Development LLC v. Estate of Ankrom

Title Insurance

• Underwriting Bulletins Remain Under Seal: Bayview Loan Servicing, LLC v. North American Title Ins. Co.
• Confusion Over Tax Sale Does Not Alter the Fact That Policy Insures Only One Parcel: Fidelity Nat’l Title Ins. Co. v. Steve Fitzgerald, LLP
• Insurer May Not Assert Voluntary Settlement Defense After Denying Claim: Landfall Trust LLC v. Fidelity Nat’l Title Ins. Co.

Escrow Matters

• Wire Transfer Fraud Case Against Bank Continues: Chicago Title Co., LLC v. JPMorgan Chase Bank, N.A.
• Loss Caused by Escrowee’s Theft of Money Borne by Party Having More Control Over Escrowee: Boozer v. Fischer
• Suit Against Escrowee is Premature Until Rights in Escrowed Money are Resolved: Family of Care Real Estate Holding Co., Inc. v. Chapman Property, LLC
• Missouri Court Freezes Bank Accounts of Alleged Wire Transfer Fraudsters: Fidelity Nat’l Title Ins. Co. v. APM Management Service’s LLC
• Escrowee May Release Escrowed Money to Business Owner After Partner Released All Claims in the Business: Lantz v. Lantz

Agent Focus

• Passage of Time Does Not Relieve Agent of Duty to Pay Premiums to Underwriter: First American Title Ins. Co. v. Northwest Title Company LLC

Title Insurance

• Insurer Owes Lender Despite Loan Payment in Full: Centerpoint Mechanic Lien Claims, LLC v. Commonwealth Land Title Ins. Co.
• Evidence or Discussion of Title Insurance Policy Not Allowed When Purpose Is To Prejudice Trier of Fact: Rahn v. Gonyea
• Admission of Evidence of Title Insurance Okay for Limited Purpose: S. Bank, N.A., as Trustee v. McAfee
• Judge Faces Disqualification for Accusing Doma of Conducting a Shell Game: North American Title Co. v. Superior Court of Fresno County

Agent Focus

• FedEx Discount Promise to Title Agent May Not Be Enforceable: Metropolitan Title Agency, Inc.
• Closing Fraud Issue Reported Too Late Under Claims-Made Policy: Blazek v. Ohio Bar Liability Ins. Co.

Escrow Matters

• Closing Company Not Off the Hook for Phishing Wire Fraud Loss: Hoffman v. Atlas Title Solutions, Ltd.
• Broker Lien Escrowee Owes No Duty to Buyer Not a Party to Escrow Agreement: Elevation Enterprises Limited v. Anchor Capitol L.L.C.
• Title Insurer Has No Claims Against Law Firm That Failed to Deliver Loan Payoffs: Stewart Title Guar. Co. v. Law Offices of David Fleischmann, P.C.
• Lender Did Not Prove That Notary Was Title Insurer’s Agent: Dattala v. Precision Assets

Title Insurance

• Insured Rewarded for Suing Agent to Defeat Diversity Jurisdiction: 2386 Hempstead, Inc. v. WFG Nat’l Title Ins. Co.
• Insurer Not Liable Under Policy or Closing Protection Letter for Loan Closer’s Defalcation: Ticor Title Ins. Co. v. Kiavi Funding, Inc
• Second Nevada Federal Judge Agrees That One Endorsement Covers Post- Policy Assessment Liens: HSBC Bank USA v. Fidelity Nat’l Title Group, Inc
• Subrogation Against Borrower Harder Than It Looks Insured’s: Chicago Title Ins. Co. v. Valembrun
• Seller Fraud Recoupment Based on False Owner’s Affidavit: Lewis v. Fidelity Nat’l Title Ins. Co

Escrow Matters

• Escrow Company Liable for Phishing Wire Transfer Fraud: Mago v. Arizona Escrow Financial Corp.
• Buyer Suffers Wire Transfer Fraud Loss, Not Escrow Company: Wheeler v. Clear Title Co.
• Title Agent Creates Legal Tangle By Switching Legals on Two Deeds: Burt v. Furtado
• Escrow Company Not Liable For False Statement in Document Delivered Through Escrow: Sushi KJ Corp. v. Hana Escrow Company Inc

Title Insurance

• Cemetery Is Physical Condition, Not a Title Issue; Insurer Has No Duty to Defend Claim That Post-Policy Structures Impede Use of Excepted Easement: Stewart v. Old Republic Nat’l Title Ins. Co.
• Insurer Did Not Waive Voluntary Settlement Provision: Knox TL Lot Acquisition, LLC v. First American Title Ins. Co.
• Insured’s Consultant’s Opinion Is Not Forced Removal: Dixon v. Connecticut Attorneys Title Ins. Co.
• Insurer Does Not Concede Title Defect by Commissioning DIV Appraisal: Landfall Trust LLC v. Fidelity Nat’l Title Ins. Co.
• Insurer Has No Duty to Defend Tort Claims Relating to Insured Easement: Sanzotta v. Devor

Escrow Matters

• Real Estate Agent Not Liable for Wire Transfer Fraud: Roemer v. Hurd
• Judgment Creditor Cannot Sue Escrowee for Failure to Pay Judgment From Closing: Larson Real Estate Ventures, LLC v. Nations Title Agency of Michigan, Inc.

 Title Insurance

• Insured Entitled to Limited Discovery of Insurer Claim Procedure Manuals, No Information About “Similar” Claims: First American Title Ins. Co. v. Hanson Aggregates Midwest
• Important Arizona Mechanic Lien Case Remanded: Fidelity Nat’l Title Ins. Co. v. Osborn III Partners LLC
• Insurer Not Required to Produce All Documents About Policy Defenses Before Deposing Insured’s Principal: Cottonwood Acres, LLC v. First American Title Ins. Co.
• True Owner’s Possession and Rent Collection at the Property Negates Policy Coverage for His Rights: Zucker Real Estate Corp. v. Old Republic Nat’l Title Ins. Co.  
• Policy Does Not Cover Broken Elevator: 228 W 72 LLC v. 228A West 72 LLC

Agent Focus

• Buyer Has No Claims Against Title Agent for Forgery Fraud: Houndstooth Capital Real Estate, LLC v. Maverick Title of Texas, LLC

Escrow Matters

• Buyer One Has No Standing to Sue Escrowee for Closing Escrow With Buyer Two: Kravchuk v. Trelles
• Escrow Party Has Priority Claim to Interpled Money: Alford v. Seiler

Escrow Matters

• Title Agent Gets Major Victory on Wire Transfer Fraud Insurance Coverage: Valero Title Inc. v. RLI Ins. Co.
• Closer’s Wire Transfer Fraud Action Against Paying Bank Proceeds: Cosmopolitan Title Agency, LLC v. JP Morgan Chase Bank, N.A.
• Wire Fraud Action Offers Practice Pointers: Fidelity Nat’l Title Ins. Co. v. APM Management Service’s, LLC
• Close My Account Letter Necessary to Prove HELOC Mortgage Must Be Released: Todaro v. Wells Fargo Bank, N.A.
• Party Flunks ID Verification Agreement by Accepting Fake Passport: Zaftr Inc. v. Lawrence

Title Insurance

• Insurer Had No Duty to Defend Insured in Fight About Ownership of Aerial Conveyor Bridge: Pandora Distribution, LLC v. Ottawa OH, LLC
• Title Insurer Has No Duty to Procure Property Insurance: Yao v. State Farm Fire & Cas. Co
• Title Insurer Gets Judgment Against Buyer Who Did Not Pay Off Lender After Purchase Rescinded: WFG Nat’l Title Ins. Co. v. Kim

Agent Focus

• Nebraska Holds Abstracting is a Pro Service, Two Year Limitations Applies: Mai v. German
• Buyer Has No Claim Against Title Agent for Missing Parcels: Diehl v. Hulls

Title Insurance

• Latest Developments in Nevada HOA Lien Coverage Actions: Wells Fargo Bank, N.A. v. Fidelity Nat’l Title Ins. Co.
• Loan Policy Loss Measured as Market Value of Lost Parcel, Not Lender’s Diminution in Security: Wells Fargo Bank, N.A. v. Stewart Title Guar. Co.
• Virginia Rejects Search Negligence Claim Based on Title Insurance Policy: Landfall Trust LLC v. Fidelity Nat’l Title Ins. Co.
• Owner’s Policy Terminates on Voluntary Conveyance, With a Wrinkle Added by Adverse Possession: Shah v. Fidelity Nat’l Title Ins. Co.

Agent Focus

• Title Agent May Seek Declaration That Its Insured Has Good Title: Title Agent May Seek Declaration That Its Insured Has Good Title Richardson v. Republic Title of Texas, Inc.

Title Insurance

• Exclusion 3(a) Negates Coverage For Rights in Off-Record Agreement Given to Insured Bank: First Nat’l Bank of Izard County v. Old Republic Nat’l Title Ins. Co.
• Title Agent Wrongly Joined to Defeat Federal Diversity Jurisdiction: Naber v. First American Title Ins. Agency, Inc.
• Claims Counsel Communication Privileged in Insured’s Quiet Title Action: 240 GA, LLC v. Greenwich Harbor View Ass’n, Inc.
• Title Insurer Claims No Interest in Property by Conducting a Closing: Lynch v. DeMotte State BankLynch v. DeMotte State Bank
• Loan Policy Successor Rights Tested: S. Bank N.A., as Trustee v. Fidelity Nat’l Title Group, Inc.

Agent Focus

• Tax Deed Voided Because Litigation Guarantee Listed Wrong Address: Wells Fargo Bank, N.A. v. Zinvest, LLC

Escrow Matters

• Customer May Proceed in Suit Against His Bank for Wire Transfer Fraud: Jakob v. JPMorgan Chase Bank, N.A.
• Bank Not Liable For Delivering Wired Money to Fraudster: Approved Mortgage Corp. v. Truist Bank
• Choice of Forum Provision in Escrow Agreement Trumps Conflicting Term in Purchase Agreement: In re Siluria (Assignment for the Benefit of Creditors), LLC
• Construction Disbursing Service Owes No Duty to Builder: Henry Adams, Inc. v. U.S. Bank, N.A.