Court Report

An insured became entangled in a series of lawsuits regarding a piece of property in California. While working through those court cases, the insured sought defense or indemnification from its title insurer. The title insurer denied its claim and the insured sued the title insurer over its failure to provide a defense or indemnification in the various cases.

After being assigned a note and mortgage in default after the failure of the original bank, the assignee sought coverage under the title policy. The title insurer denied coverage and the bank filed suit for breach of contract. The title insurer countersued for declaratory judgment.

RP Family Inc., brought action against its title insurer, claiming breach of contract and other state law claims arising out of the insurer’s alleged failure to satisfy its obligations under RP Family’s title insurance company. The insurer brought a third-party complaint against the title agent and others, seeking indemnification. Each party now seeks summary judgment in the U.S. District Court for the Eastern District of New York.

After discovering it lost $7 million on loans secured under a fraudulent property flipping scheme, a bank went after several parties, including the title agents who closed the transactions and the title insurer. The bank sued, asserting claims against the agents for breach of closing instructions and claims against the title insurer for breach of the closing protection letter. The bank eventually appealed the case to the Court of Appeals of Michigan on a trial court’s dismissal of one of the agents and the title insurer.

After being unsuccessful in filing a quiet title action against the adjoining property owners over an easement dispute, the plaintiff homeowners submitted a claim for defense to their title insurer. The title insurer denied the claim, asserting the suit was excluded from coverage. The homeowners then sued the title insurer for breach of duty. The case eventually went before the Supreme Court of Nebraska.

California homeowners sued their title insurer for violating RESPA when it received marketing fees from several delivery companies in exchange for referring overnight delivery business to the carriers via the insurer’s subsidiaries. The case went before the U.S. District Court on the title insurer’s motion to dismiss.

After successfully preventing their lender’s attempt to obtain a deficiency judgment because the lender refused to remove a lien on their property and then foreclosed, a couple sued several entities, including a title insurer and the bank that held the questionable lien. Read on to find out what happened when the bank and insurer sought to dismiss the claims against them.

U.S. Representatives Robert Pittenger, R-N.C., and Denny Heck, D-Wash., have introduced a bill that would give small businesses a voice at the Consumer Financial Protection Bureau (CFPB). The bill, HR 4383, creates a small business advisory board at the CFPB. The advisory board would be similar to those established by the CFPB for outreach to community banks and credit unions. Advisory boards provide clear, formal and open channels of communication between bureau staff and industry.

A property owner purchased a fee interest in property in Brooklyn and air rights to contiguous property. It applied for a construction permit, but was denied because its certification of interested parties omitted certain necessary parties. It sued its title insurer for failing to submit the certification of interested parties on time.

After being sued and having a cross-claim filed against them, an insured sought indemnification by several insurers, including its title insurer. Each insurer denied the claim. The insured then filed suit against its insurers, claiming breach of contract, breach of good faith and fair dealing, and seeking declaratory relief. The insurers moved to dismiss the claims against them.