Court Reverses First American Verdict

May 30, 2007

Associated Press

NEW YORK (AP) -- Business information provider First American Corp. said a federal appeals court has reversed a $32.4 million punitive damages verdict against one of its subsidiaries.

First American said in a Securities and Exchange Commission filing Friday that the 6th U.S. Circuit Court of Appeals reversed the verdict in the case of Chicago Title Insurance Corp. versus James A. Magnuson.

The appeals court also ordered a new trial in on the $10.8 million compensatory damages verdict in the case, according to the filing.

During 2005, First American recorded a reserve of $10 million in connection with the case and said it's currently evaluating the appropriateness of this reserve in light of the court decision.

First American shares rose 2 cents to $53.17 in morning trading.

Coopyright 2007 Associated Press

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North American Title Insurance Company (NATIC) is a seasoned title insurance underwriter, helping title agents to achieve their individual business goals for more than 50 years. Today, the company conducts real estate settlement services in 39 states and the District of Columbia through a network of experienced, independent agents.