Promissory note holder sues title insurer for negligence

A promissory note holder sued several parties, arguing it is entitled to collect money due under a promissory note on a condominium development. Among others, it sued the title company that conducted the closings of individual condominium units alleging that the insurer negligently transferred title to the units and funds to the developer without verifying the developer’s debt to the promissory note holder. Read on to find out what the Court of Appeals, Second District, California, had to say when the issue went before it.