Court Report

A title insurer filed an adversary proceeding against a debtor in bankruptcy court for failing to disclose a $1.9 million deed of trust on the property that the title insurer eventually had to pay off. The case eventually went before the 11th Circuit Court of Appeals. Read on for more details.

Owners of a home in Pebble Beach, Calif., sought coverage of a lawsuit brought by Coastal Commission, alleging that the suit was a direct result of their title insurer’s efforts to address a previously undiscovered open air easement. The title insurer sought to dismiss the complaint in federal court. Read on for more details.

After paying off a claim for a mechanic’s lien on the insured property, a title insurer sued the owner of the property, the title agency that conducted the title work. The insurer argued that the owner knew that there was a chance the construction company that built the house on the property would file a mechanic’s lien.

When an insured bank went to foreclose on its mortgage, it discovered that it did not have a valid lien on one of the properties the borrower had put up as collateral. It sought a claim on the closing protection letter, but was denied. This suit in federal court followed.

After litigation was finished regarding property it held a mortgage on in Illinois, a bank went after its title company, arguing that the title company was required to defend any claim or counterclaim indicating the validity of the mortgage it insured. Read on for more details.

Despite having their debt discharged during a bankruptcy proceeding, the sellers of property in Texas sold their home with the lien attached. When the title company discovered the lien, it sued the sellers. Read on for more details.

After discovering that they had acquired defective title through fraud perpetrated by a third party, a couple lost a quiet title action filed against them. Although their title company defended them and provided the funds to discharge the mortgage the couple took out on their property, the couple didn’t feel that was full restitution and filed suit.

After money was stolen from its title company’s escrow accounts, a developer went after the title company’s errors and omissions insurance provider. Read on to find out how the 11th U.S. Circuit Court of Appeals ruled when the case went before it.

After paying out claims on five title policies on transactions signed by a fraudulent signer, a title insurer sued the notary that notarized the five signatures, alleging that the notary had negligently notarized the documents. The case eventually went before the Fourth Appellate District Court of Appeal of California.

In a recent opinion, the U.S. Supreme Court clarified what a borrower must do to invoke his or her right to rescind under the Truth in Lending Act. Read on to find out the court’s reasoning.