Anderson v. Musick (Oct. 24, 2024)
Posted Date: Tuesday, November 19, 2024
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The plaintiff sought specific performance related to the sale of a mobile home park and the surrounding land. The trial court denied relief, saying the papers introduced by the plaintiff as a purported real estate contract between the parties did not constitute a valid contract. In fact, the court could not discern the terms of the purported contract. The plaintiff appealed.
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Harman v. 105 Partners, LLC (Aug. 1, 2024)
Posted Date: Thursday, November 14, 2024
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Two real estate developers each signed an agreement to buy the same property from the same seller. Through a series of circumstances, one developer ended up with the title. The second developer sued the first developer and the seller. The district court dismissed all claims by the plaintiff, who then appealed.
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Kiesel Living Tr. v. Hyde (Aug. 30, 2024)
Posted Date: Wednesday, November 6, 2024
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The purchaser of a Montana subdivision lot had high hopes for building on the land, but an unrecorded easement – and questions about whether it should have been disclosed in the purchase agreement – sank the project.
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Providence Title Co. v. Truly Title, Inc. (Aug. 22, 2024)
Posted Date: Tuesday, November 5, 2024
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Employee mobility between title insurance agencies is not a new trend, but courts continue to scrutinize the actions of companies and their employees in a highly competitive landscape. In fact, recent rulings in a contentious lawsuit between two former competitors in Texas concluded that “the possibility of crippling, or even destroying, a competitor is inherent in a competitive market.”
But what conduct in this situation is lawful? A Texas federal court delivered mixed rulings to parties accused of engaging in unlawful conduct surrounding the departure of former employees of Providence Title Co. to join a competitor, Truly Title, Inc.
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Adriana Hedden v. Navy Federal Credit Union, et al. (Oct. 29, 2024)
Posted Date: Tuesday, November 5, 2024
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A federal court in the eastern district of Pennsylvania considered a consumer’s plea to invalidate a fraudulent loan taken out by a scammer posing as a Navy Federal Credit Union employee.
Navy Federal, while sympathetic toward her plight, moved to dismiss the action, stating her claim lies with the scammer, not the lender.
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Madden v. New Zion Baptist Church of Atlanta, Inc. (Oct. 24, 2024)
Posted Date: Monday, October 28, 2024
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In a property dispute, a church sought a statutory partition of commonly owned real property and asserted claims for breach of contract and breach of the duty of good faith and fair dealing after its motion to strike the defendant’s answer and dismiss his counterclaim was granted. The defendant appealed.
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Parrish v. Ratliff
Posted Date: Monday, October 14, 2024
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In a long-standing boundary line dispute, one party sought to appeal the decision of an Alabama trial court, arguing the testimony of the surveyor and the surveys provided were contradictory.
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Van Swol v. Geiger
Posted Date: Monday, October 14, 2024
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After the holder of a right of first refusal failed to exercise his right of first refusal or release his right, the property owners sought to quiet title. When a trial court quieted title in favor of the property owners, the holder of the right of first refusal appealed.
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Tracy George v. Allen Martin Ventures LLC
Posted Date: Thursday, October 10, 2024
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A lender sued the LLC that borrowed money from them, as well as the managing member of the LLC that signed the promissory note under which she personally guaranteed the loan, after both the LLC and the managing member failed to pay back the loan.
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First American Title Insurance Co. v. Ram Abstract LTD
Posted Date: Thursday, October 10, 2024
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After paying out a claim due to a fraudulent payoff, a title insurer filed suit against the sellers of the subject property, among others. The title insurer then moved for default judgment.
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Liezl de Guzman v. Real Time Resolutions Inc.
Posted Date: Thursday, October 10, 2024
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A foreclosed upon property owner appealed a decision in favor of defendant entities that foreclosed upon her, after a trial court granted summary judgment in their favor. The owner had brought various theories as to why the foreclosure was wrongful.
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Tek Grubu v. Coretitle LLC
Posted Date: Thursday, October 10, 2024
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After it was sued for conducting a fraudulent transaction, a title company filed a third-party complaint against a listing owner, arguing the listing owner should have confirmed the identity of the purported seller prior to the transfer.
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EagleBank v. Schwartz
Posted Date: Monday, September 30, 2024
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In the latest complaint in a long dispute with guarantors of two loans under which the guarantors agreed to a confessed-judgment provision, a bank sought partial judgment on the pleadings on the guarantors’ tortious interference and slander of title counterclaims.
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HSBC Bank v. Fidelity National Title Group
Posted Date: Monday, September 30, 2024
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After prevailing in a title insurance dispute stemming from litigation over a homeowners’ association’s foreclosure sale, the title insurer sought attorney’s fees from the bank that sued it.
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High Definition Homes LLC v. Stewart Title Guaranty Co.
Posted Date: Tuesday, September 24, 2024
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The owner of property in Centralia, Wash., sought coverage after discovering a boundary line adjustment consolidated two lots it had purchased into one. Its title insurer denied coverage and the owner filed suit.
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Heinz v. State of Ohio
Posted Date: Tuesday, September 24, 2024
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A man filed the latest of several attempts to challenge a 2014 foreclosure action by filing suit against the state of Ohio, Ohio Attorney General David Yost and a title company, among others.
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Title Inc. v. U.S. Bancorp
Posted Date: Tuesday, September 24, 2024
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After being the victim of payoff fraud, a title agency filed suit against the bank that received the funds from the fraudulent payoff instructions. The bank moved to dismiss the case.
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Silk Title Holdings v. Fifth Third Bank
Posted Date: Monday, September 23, 2024
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A title agency and its holding company filed suit against its bank for breach of contract regarding a credit the bank placed in the company’s account and later reversed.
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Stanley Ford Sr. v. Mark Ritter
Posted Date: Monday, September 23, 2024
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A buyer sued several parties to a transaction, asserting claims of negligence, negligent representation, breach of fiduciary duty, and breach of contract, seeking to recover funds lost in a wire fraud scheme. After a trial, the buyer dismissed claims against all defendants except his real estate agent.
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James Thomas Dunphy III v. American Heritage Title Agency Inc.
Posted Date: Monday, September 23, 2024
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After purchasing property in Delta County, Colo., a property owner found that his policy disclosed and excluded from coverage an access easement for adjacent property. He was asked to execute an easement deed. The situation escalated and he filed suit against the adjacent property owner and the title company.
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U.S. Bank N.A. v. Shannon Fassett and Brian Fassett
Posted Date: Monday, September 23, 2024
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Two banks filed competing claims arising from their mortgages on the subject property. They later filed cross-motions for summary judgment, each arguing that their lien had priority over the other. The lower court ruled that one bank’s lien was superior, and the case was appealed.
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Harold Davis v. First National Bank of Pennsylvania
Posted Date: Monday, September 23, 2024
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In one of a series of cases alleging violations of RESPA where a bank allegedly received kickbacks in exchange for referring business to a now-defunct title company, the plaintiff homebuyer moved to remand the case to state court.
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Juan Ortiz v. Keystone Premier Settlement Services LLC
Posted Date: Monday, September 23, 2024
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A homebuyer in Pennsylvania filed a class action against a settlement services company and its employees for overcharging for notary services, claiming violations of Pennsylvania’s Revised Uniform Law on Notarial Acts and the state’s Unfair Trade Practices and Consumer Protection Law. The company and its employees moved to dismiss the case and strike the class allegations.
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City of Philadelphia v. Leverett
Posted Date: Monday, September 23, 2024
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The widow of a property owner in Philadelphia appealed an order denying her petition for the distribution of excess proceeds following a 2012 tax sale of her deceased husband’s property. The city filed an application to quash the appeal.
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Irons v Lin
Posted Date: Monday, September 23, 2024
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After the new owner of vacant property acquired the property after a sheriff’s sale, the owner of adjacent property filed suit to quiet title, arguing she acquired the property via adverse possession.
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Security Title Guarantee Corp. of Baltimore v. 915 Decatur St. NW LLC
Posted Date: Monday, July 29, 2024
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After being sued for allegedly defrauding a property owner and forging her name on a deed, the insured sought indemnity from its title insurer. The insurer filed suit against its insured, seeking declaratory relief that its insured was not entitled to legal defense or indemnification in the underlying suit.
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771 Allison Court LLC v. Nicholas Sirianni and Brett Sirianni
Posted Date: Monday, July 29, 2024
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The seller of property in Moorestown, N.J., filed a breach of title action against the proposed buyers for backing out of the purchase after finding a right of first refusal on the property deed. After a trial court found the right of first refusal restricted the sale of the property, the seller appealed.
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Martin Tait, et al. v. Commonwealth Land Title Insurance Co.
Posted Date: Monday, July 29, 2024
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When property owners found an easement prevented them from subdividing their property, they sought coverage from their title insurer. The insurer provided compensation based on the loss of value of the owner’s actual use of the property. The property owners filed suit, alleging the insurer failed to pay the full amount by which the property’s value was diminished.
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Cottonwood Acres LLC v. First American Title Insurance Co.
Posted Date: Monday, July 29, 2024
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As part of a suit against an insurer alleging it failed to provide coverage under the title policy, the insured deposed a title operations manager at the insurer. The deposition was suspended when the parties disagreed on the line of questioning. The insured now seeks to compel the employee’s testimony.
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West 125th Street Realty LLC v. Chosen Realty Corp.
Posted Date: Monday, July 29, 2024
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After being sued by the purchaser to invalidate an easement and for fraud, the seller filed suit against the title insurer and abstractor for indemnity. The case eventually went before a New York State appellate court.
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Moldovan v. Long
Posted Date: Monday, July 1, 2024
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When the purchaser of property in Paradise Valley, Ariz., entered into an agreement to sell the property, the escrow agent for the transaction required a previously undisclosed deed be conveyed to the seller before the transaction could occur. The seller paid the deed holder to convey the deed to it but filed suit, arguing the escrow agent was negligent or breached its fiduciary duty.
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Providence Title Co. v. Truly Title Inc., et al.
Posted Date: Wednesday, June 26, 2024
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As part of a lawsuit brought by her former employer for alleged trade secrets violations, a former title agency employee alleged her former employer went through her Gmail and LinkedIn accounts on the computer they provided after she left for another job.
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DJL AZ Investments LLC v. Chicago Title Insurance Co.
Posted Date: Wednesday, June 26, 2024
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After being sued by its insured, a title insurer filed a third-party complaint against the owner of the subject property, seeking indemnification because the owner provided an inaccurate statement on an owner’s affidavit by failing to include an encumbrance on the affidavit.
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Kim Coolbeth v. Connecticut Attorneys Title Insurance Co., et al
Posted Date: Monday, June 10, 2024
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For years, the owner of property in the town of Kent, Conn., had an understanding with his parents that he could park on their property and have access to his adjacent property. He lost that access when his parents sold the lot. He filed a claim with his title insurer, who denied it. After that, he filed suit against his title insurer for breach of contract.
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Carlos McKenzie v Keith Boodoo
Posted Date: Wednesday, June 5, 2024
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In an action brought to quiet title by virtue of adverse possession and cancel a New York City declaration that the deed transferring ownership between two prior owners may be fraudulent, a New York state court determined whether the subject deed was fraudulent.
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Nationstar Mortgage LLC v. Ivelaw Scarville, et al
Posted Date: Wednesday, May 8, 2024
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The subsequent owners of property in Garfield Heights, Ohio, appealed the confirmation of a sheriff’s sale following a judgment in foreclosure. They also sought to intervene in the foreclosure action.
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Sanford Sachtleben and Luciann Hruza v. Alliant National Title Insurance Co.
Posted Date: Monday, May 6, 2024
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The Supreme Court of Missouri, sitting en banc, recently ruled in an appeal of a coverage dispute in favor of a title insurer. The property buyers unknowingly got involved in a legal dispute over the land because the sellers constructed a barn on the property in violation of the city’s zoning ordinances. The buyers sued their title insurer when the insurer denied coverage for the dispute.
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Wells Fargo Bank NA v. Commonwealth Land Title Insurance Co.
Posted Date: Wednesday, April 17, 2024
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The Ninth U.S. Circuit Court of Appeals recently heard an appeal of a district court’s grant of summary judgment to a title insurer on a lender’s claims for coverage under its title policy when its deed was extinguished after a homeowners association enforced its superpriority lien for delinquent assessments.
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Real Advantage Title Insurance Co. et al. v. United States et al.
Posted Date: Wednesday, April 3, 2024
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The title companies that eventually were forced to purchase property after the U.S. Department of Housing and Urban Development (HUD) failed to record a reconveyance of a deed of trust on a reverse mortgage it held filed suit against HUD and the loan servicer. The servicer’s email system had been compromised and bad actors sent a fraudulent payoff statement to the title companies when conducting a sale of the subject property.
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U.S. Bank National Association v. Fidelity National Title Group Inc.
Posted Date: Monday, April 1, 2024
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A bank that held the mortgage on property in Las Vegas filed suit against the title insurer that insured the lender’s title interest after a homeowners association foreclosed on its lien and sold the property. The insurer moved to dismiss the case.
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Cary v. First American
Posted Date: Monday, March 25, 2024
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After entering into a real estate purchase option agreement to help alleviate her growing debt, the owner of property in Washington State discovered the true terms of the agreement when she filed for voluntary bankruptcy. She then filed suit against the escrow agent that facilitated the transaction.
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Robert Casner v. Raymond Roberts
Posted Date: Wednesday, March 13, 2024
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The developer of property in Connecticut filed suit against the owners of the property, arguing they breached the restrictive covenants encumbering the property by putting up a large garage on the property and operating a business from it.
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Johnston v. Flying S Title
Posted Date: Monday, March 4, 2024
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The Supreme Court of Montana heard a case to determine whether a title company was contractually liable to homebuyers for title insurance on disputed properties. The district court had granted summary judgment in the title company’s favor.
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Keyvan Parsa v. WestStar Title LLC
Posted Date: Wednesday, February 28, 2024
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A title company and the seller of property disputed whether the seller owed the title company money after the company stepped in to pay off the lien. A trial court affirmed summary judgment in the company’s favor and the seller appealed.
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Brian Seplow v. Closing Pro Inc
Posted Date: Wednesday, February 21, 2024
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A buyer filed a class action against the real estate services firm that assisted in closing on property in Pottstown, Pa., for overcharging him for notary services, alleging claims under the state’s Revised Uniform Law on Notarial Acts, the Unfair Trade Practices and Consumer Protection Law, and unjust enrichment.
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In re: Shaw 3rd Holdings LLC
Posted Date: Tuesday, February 20, 2024
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The replacement lender of two liens on property in Washington, D.C. filed an action to determine the priority of the two liens, after the property owner filed for bankruptcy.
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Vasilios Kiritsis et al. v. Stewart Title Guaranty Co.
Posted Date: Wednesday, February 14, 2024
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When a neighbor found out the owners of property in Ocean City, Md., were selling their property to a developer who wanted to take down the current residence to replace it with three residential dwellings, they filed a complaint arguing the new owner would not be able to do that under the city’s zoning code. After their title insurer denied their claim to defend them in that action, the current owners filed suit against it.
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Sona Pillai v. David Scalia
Posted Date: Wednesday, February 14, 2024
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A husband and wife and the wife’s mother purchased property in Westford, Mass., as joint tenants. After the spouses divorced and the mother passed away, the wife sold the property to a third party. The purchaser later sought to refinance her loan and was told of a potential title defect because there was a question of whether the mother’s descendants owned her interest in the property. The purchaser filed a complaint to address the possible issue.
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Susan Galette v. Avenue 365 Lending Services LLC and Newrez LLC
Posted Date: Wednesday, January 31, 2024
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A former funding specialist sued the title agency she worked for, alleging that when it terminated her employment, it denied her a reasonable accommodation to which she was entitled under the Americans with Disabilities Act. She had worked remotely for two years before the company determined she could not perform all the essential functions from home.
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Andrew Christensen, et al. v. First American
Posted Date: Wednesday, January 31, 2024
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The current owners of property in California sued the title insurer that conducted the transaction, as well as the former owners of the property and their real estate agents when they discovered they did not own the addition the former owners had purchased earlier.
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Chicago Title Insurance Co. v. Charles Valembrun
Posted Date: Thursday, January 18, 2024
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After the first mortgage on property went into foreclosure, the holder of a second mortgage took out a title policy. The title insurer defended the second mortgage holder and entered into a settlement with the first mortgage holder. It then filed suit against the mortgagor for breach of contract and common-law indemnification.
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Eddy Copot v. Stewart Title Guaranty Co.
Posted Date: Thursday, January 18, 2024
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The former employee of a title insurer sued their former employer, arguing that the insurer sued them for discriminatory reasons. After the court granted summary judgment in the employer’s favor, the employee sought relief from the judgment.
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Raymond Moss v. Clark County Title
Posted Date: Thursday, January 18, 2024
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The seller of property in Vancouver, Wash., sued the escrow agent that conducted the sale of the property for failing to pay off a second mortgage on his former residence.
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JMMJ Development LLC v. Town of Greenport
Posted Date: Monday, January 8, 2024
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The purchaser of property in the town of Greenport, N.Y., sued the town, arguing the town didn’t have a valid easement on its property for sewer and water lines. After a trial court ruled in the town’s favor, the purchaser appealed.
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In Re Chicago Title Insurance Co.
Posted Date: Monday, January 8, 2024
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A title insurer asked an appellate court to compel a trial court to vacate its order denying the insurer’s motion to dismiss a suit for want of prosecution and to compel the trial court to dismiss the case for want of prosecution.
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Landfall Trust v. Fidelity National Title
Posted Date: Monday, December 18, 2023
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A title insurer sought a court’s reconsideration in a breach of contract case. The U.S. District Court for the Eastern District of Virginia had found that the insured established the insurer’s breach of its title policy by failing to compensate the insured for losses incurred because of unmarketable title.
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Sharestates Investments LLC v. WFG National Title Insurance Co.
Posted Date: Monday, December 18, 2023
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A lender filed suit against its title insurer after the insurer denied defense of the lender in a suit brought by a person alleging that the lender and others conspired to obtain fraudulent mortgages and aided and abetted a conman. Various motions went before the U.S. District Court for the District of Maryland.
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Gennaro v. North American Title
Posted Date: Monday, December 4, 2023
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After purchasing property in California and purchasing title insurance, the buyer of the property was notified of land use violations on the property. The title insurer denied a claim regarding the violations and the buyer filed suit.
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21647 LLC v. Deutsche Bank National Trust Co., as indenture trustee for New Century Home Equity Loan Trust 2005-3
Posted Date: Monday, November 20, 2023
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After a mistake on a mortgage was fixed, the borrower defaulted on the mortgage and the lender’s assignee attempted to foreclose on the unit. At the same time, the condominium association for the unit foreclosed on its lien on the property. An entity purchased the unit at the condominium association’s foreclosure auction and sought to quiet title to the property. The case eventually went before the 2nd U.S. Circuit Court of Appeals.
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Jha v. Chicago Title Insurance Co.
Posted Date: Thursday, November 16, 2023
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When a couple purchased property in Woodinville, Wash., from a bank that had acquired the property after foreclosing on the previous owners, it agreed to do so as-is. It also obtained title insurance and later sought coverage for alleged title defects. The insurer denied all but one of the claims, and the couple sued.
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PennyMac Corp. v. Westcor Land Title Insurance Co.
Posted Date: Friday, November 10, 2023
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The Supreme Court of Nevada recently heard an appeal from a district court order granting a motion for summary judgment in an insurance coverage and bad faith dispute arising out of an homeowners’ association foreclosure.
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Saybree Fillyaw v. Community National Bank & Trust, et al.
Posted Date: Friday, November 10, 2023
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A party to real estate transactions filed suit against bank and title and escrow entities, alleging they violated her constitutional rights by racially discriminating against her and thwarting her transactions by breaching and interfering with contracts.
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WW3 Ventures LLC v. The Bank of New York Mellon
Posted Date: Friday, November 10, 2023
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The Court of Appeals of Georgia considered whether a defective security deed, which does not provide constructive notice to future bona-fide purchasers of the subject property, may provide inquiry notice in view of a purchaser’s failure to inquire into the chain of title prior to purchasing the property.
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Dalton M. LLC v. North Cascade Trustee Services
Posted Date: Monday, October 30, 2023
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The Supreme Court of Washington recently heard a case where the owner of property sued the lender that wrongly foreclosed on the property. The owner prevailed at trial court on both quiet title and damages for slander of title, and the trial court awarded substantial fees based on the slander of title claim. The appellate court reversed the slander of title claim but awarded fees to the owner on a new theory before the case was reviewed by the highest court of the state.
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Saticoy Bay LLC v. Feda
Posted Date: Monday, October 30, 2023
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After a seller was unsuccessful in obtaining title insurance as required under the sales contract, it returned the buyer’s earnest money and canceled the contract. The buyer filed suit, seeking performance of the contract.
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Salas v. Commonwealth Land Title Insurance Co.
Posted Date: Monday, October 30, 2023
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When a trust purchased property from a developer, the purchase and sales agreement required it to develop the lot within two years or the developer would have the right to repurchase the lot. The trust failed to do so and eventually settled with the developer, seeking coverage from its title insurer. The insurer declined coverage of the losses and the trust sued.
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Sundby v. Fidelity National Title Co.
Posted Date: Monday, October 30, 2023
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A couple, as themselves and as trustees of a trust, filed suit against a title insurer for the purported wrongful foreclosure on their property. Two related cases are also making their way through the court system, and the court ruled it was necessary to stay this case pending appeal in the others.
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Commonwealth Land Title Insurance Co. v. Mohammad Islam
Posted Date: Thursday, October 19, 2023
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After receiving a default judgment against a buyer and seller for unjust enrichment, a title insurer provided information at an inquest to provide evidence of the damages incurred. The court denied the request for damages and, after the court denied the request to reopen the inquest, the insurer appealed the decision.
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Landfall Trust LLC v. Fidelity National Title Insurance Co.
Posted Date: Thursday, October 19, 2023
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The U.S. District Court for the Eastern District of Virginia heard renewed cross-motions for summary judgment from an insurer and its insured in a breach of contract case. The insured party alleged that its title insurer breached the policy contract in part by failing to compensate it for losses allegedly covered under the policy.
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Fletcher v. Merritt
Posted Date: Thursday, October 12, 2023
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The owners of adjacent properties disputed the ownership of land between the two properties. One party filed a quiet title suit and was found to have superior title. The other party appealed.
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Clallam Title and Escrow v. Patricia Pronesti, Kyle Fritz
Posted Date: Thursday, October 12, 2023
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A title company filed an interpleader action against a buyer and seller to resolve the conflicting claims to earnest money for a failed sale. The seller appealed a trial court’s order directing that interpleader funds be released to the buyer following a directed verdict in favor of the buyer.
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Trailhead Restriction, LLC v. City of Phoenix, et al.
Posted Date: Monday, October 9, 2023
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A group of owners of property stemming from a decades-old land swap transaction sued the city of Phoenix and the title company that conducted the transaction, arguing that the deed and escrow instructions of the land swap prohibited the construction of trails on the subject property.
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Mer Rouge Partners LLC v. First American Title Insurance Co.
Posted Date: Monday, October 9, 2023
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A buyer purchased hundreds of acres of property out of bankruptcy, as well as title insurance to cover the property, and later entered into a timber agreement to cut timber on part of the property. The previous owner had entered into a debt for nature conservation contract with the U.S. Department of Agriculture which prevented the harvesting of timber. Eventually, the buyer sued the title insurer to determine coverage under the policy for this issue.
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Chicago Title Insurance Co. v. Edward Schrader, et al.
Posted Date: Wednesday, September 27, 2023
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A title insurer sued an insured seeking a declaratory judgment to determine the parties’ duties under the title policy after the insured refused to allow the insurer to pursue efforts to cure the alleged invalidity of the insureds’ deed.
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James Stewart v. First American Title Insurance Co.
Posted Date: Friday, September 22, 2023
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A man sued his title company for consumer fraud and breach of contract. In 2021, a district court dismissed his complaint for failure to state a claim. A year later, after the court denied a motion to reconsider, the man filed a series of post-judgment motions. The district court denied those motions and the man appealed the decision to the Seventh U.S. Circuit Court of Appeals.
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Rosa DiTucci, et al. v. Christopher J. Ashby, et al.
Posted Date: Friday, September 22, 2023
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As part of extensive litigation between numerous parties, a title insurer and its employee who acted as the escrow agent for the purchases of commercial real estate sought the dismissal of the claims against them. The plaintiff in the case sought to lift the stay of litigation pending arbitration.
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PHH Mortgage Corp., successor by merger to Ocwen Loan Servicing LLC v. Old Republic National Title Insurance Co.
Posted Date: Thursday, September 14, 2023
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The successor-in-interest to a loan servicer sued a title insurer for breach of contract for denying a claim to recover the value of loss under the title insurance policy. The U. District Court for the Western District of Texas denied the parties’ cross motions for summary judgment and dismissed the case for failure to join a required party. The parties appealed to the Fifth U.S. Circuit Court of Appeals.
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NY-32 Realty Group Inc. v. Westcor Land Title Insurance Co.
Posted Date: Thursday, September 14, 2023
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A realty company sued their title insurer seeking indemnification and defense after several third parties alleged claims adverse to, or defects on, the title to property it purchased in Catskill, N.Y.
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Elliott v. Fant
Posted Date: Friday, September 1, 2023
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The former owner of property in Chesterfield County, Va., appealed a trial court’s order dismissing his claim for partition of the property and for damages against the new owner of the property after discovering an error on the deed that omitted one of the lots from the property. The new owner purchased the property from the former owner’s lender after the lender foreclosed and the former owner surrendered the property.
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Consumer Financial Protection Bureau v. Borders & Borders PLC
Posted Date: Friday, October 25, 2013
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The Consumer Financial Protection Bureau filed an action against a Kentucky law firm, alleging that the firm violated RESPA’s kickback provisions. The bureau alleged that the firm, Borders & Borders PLC, and its principals, used a network of sham affiliated business arrangements to pay kickbacks in return for real estate settlement referrals.
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BB Syndication v. First American
Posted Date: Friday, January 11, 2013
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A mortgage company filed suit over a dispute with its title insurer concerning the scope of coverage provided by a construction title insurance policy. The company believed it was covered by the policy because the mechanics liens at issue were filed before the insurer’s last date-down endorsement. The insurer disagreed.
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REBA v. National Loan Closers
Posted Date: Thursday, December 13, 2012
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The Superior Court of Suffolk County, Mass., handed down a judgment in an unauthorized practice of law (UPL) suit against a national closing company doing business in the state. Much like the case the Real Estate Bar Association for Massachusetts Inc. (REBA) brought against National Real Estate Information Services Inc. (NREIS), the company, National Loan Closers Inc., had hired Massachusetts attorneys to close real estate transactions it had worked on for companies doing business in the state.
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First American response to FDIC's CPL suit
Posted Date: Thursday, December 13, 2012
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First American Title Insurance Co. filed an answer to the FDIC’s allegations that it failed to address claims on closing protection letters the insurer issued to Washington Mutual Bank.
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Stewart motion for more definite statement against FDIC
Posted Date: Thursday, November 8, 2012
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Stewart Title Guaranty Co. responded to allegations from the Federal Deposit Insurance Co. by filing a motion for a more definite statement. The FDIC, acting as receiver for Washington Mutual Bank had been seeking to recover funds from underwriters after discovering their title agents had allegedly defrauded the bank.
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Murphy v. MERS
Posted Date: Thursday, November 8, 2012
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The 8th U.S. Circuit Court of Appeals partially reversed a lower-court decision to dismiss quiet title claims in a suit against MERS and the loan servicer who handled the foreclosures on several Minnesota properties while affirming the dismissal of the remaining counts against the defendants.
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ATIF response to FDIC CPL suit
Posted Date: Friday, November 2, 2012
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Attorneys’ Title Insurance Fund filed its response to the Federal Deposit Insurance Corp.’s closing protection letter suit by filing a motion for a more definite statement. It alleges that the allegations cannot be lumped into two claims.
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Stewart Title Guaranty Co. v. Timothy Finney
Posted Date: Friday, November 2, 2012
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After a circuit court in Kentucky certified two classes of consumers in a reissue rate suit against Stewart Title Guaranty Co., the insurer appealed to the Court of Appeals of Kentucky. The appeal revolved around a subgroup certification the court had made.
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Fannie Mae v. Hendricks
Posted Date: Friday, October 26, 2012
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The Massachusetts Supreme Judicial Court rejected a significant challenge to Massachusetts foreclosure procedures. Now it will be harder to challenge foreclosures in the state.
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Bea Huml v. Mortgage Electronic Registration Systems Inc.
Posted Date: Thursday, October 25, 2012
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The U.S. District Court for the Western District of Texas granted Mortgage Electronic Registration Systems Inc.’s motion to dismiss a case against it that alleged improper foreclosure using “robo-signed” documents. Read on for the court’s reasoning.
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FDIC v. Attorneys' Title Insurance Fund Inc.
Posted Date: Thursday, October 25, 2012
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The Federal Deposit Insurance Corp., acting as receiver for Washington Mutual Bank, sued Attorneys’ Title Insurance Fund Inc., seeking to enforce closing protection letters Attorneys’ Title issued to WaMu.
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Gondeck v A Clear Title
Posted Date: Monday, October 22, 2012
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A managing member of an Illinois title agency and another company employee sought dismissal of the claims brought against them as part of a suit against the agency. Two former customers alleged in the suit that they were the victims of a mortgage fraud scheme involving the misappropriation of funds they deposited into escrow accounts with the company. The employees’ motion went before the U.S. District Court of the Northern District of Illinois.
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Montgomer County v. MERS
Posted Date: Friday, October 19, 2012
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A U.S. District Court in Pennsylvania rejected Mortgage Electronic Registration Systems Inc.’s arguments that it was not required to record an assignment of mortgage every time a mortgage for which it was nominee was bought and sold on the secondary market.
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Kimble v. Land Concepts
Posted Date: Thursday, October 11, 2012
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After reaching a settlement with the current owners of property in Wisconsin, former owners counter-sued the current owners’ title insurer for breach of bad faith and breach of contract for not covering an easement dispute. The case eventually went before the Court of Appeals of Wisconsin.
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FDIC complaint against First American
Posted Date: Tuesday, October 9, 2012
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The FDIC brought a complaint against First American, alleging the insurer did not honor its commitments under several closing protection letters.
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FDIC complaint against Stewart Title
Posted Date: Tuesday, October 9, 2012
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The FDIC brought a complaint against Stewart Title, alleging the insurer did not honor its commitments under several closing protection letters.
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Bridges v. JPMorgan Chase
Posted Date: Thursday, October 4, 2012
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A Texas woman sued Mortgage Electronic Registration Systems Inc. and others, alleging statutory fraud, fraudulent foreclosure and negligent misrepresentation.
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FDIC v. ATIF complaint
Posted Date: Tuesday, October 2, 2012
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The Federal Deposit Insurance Corp., acting as receiver for Washington Mutual Bank, sued Attorneys’ Title Insurance Fund Inc., seeking to enforced closing protection letters Attorneys’ Title issued to WaMu.
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Home Federal Savings Bank v. Ticor Title
Posted Date: Friday, September 21, 2012
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A bank that got caught in a dispute between a developer and general contractor sought the defense of its title insurer in handling the dispute. When the title insurer refused, the bank sued for breach of contract. The trial court ruled in favor of the title insurer, but the bank appealed.
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Walsh Securities v. Cristo Property Management
Posted Date: Friday, September 21, 2012
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The U.S. District Court for the District of New Jersey approved a motion for reconsideration regarding its decision to deny motions for summary judgment by both a warehouse lender and its title insurers stemming from a fraudulent scheme involving 220 mortgages the lender funded.
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Oaks v. Countrywide
Posted Date: Thursday, September 20, 2012
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After the wrong mortgage was paid off, causing a homeowner to accrue fees and charges, she sued the mortgage servicer and title company who helped with the refinance. They, in turn, sued the refinance loan originator for providing them with the wrong loan number, causing the suit. The question that came before the U.S. District Court for the Eastern District of Louisiana is, “Can the servicer and title company sue the originator when the original suit is still in progress?”
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Texas Capital Bank v. First American
Posted Date: Thursday, September 20, 2012
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After being sued by a warehouse lender for breaching its duties as a bailee, a national underwriter sought a third-party complaint against the person who misappropriated the lender’s funds. The lender moved to strike the third-party complaint. The U.S. District Court for the Western District of Kentucky granted the motion, finding that the insurer was not entitled to an apportionment instruction.
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Whitlock v Stewart Title
Posted Date: Wednesday, September 12, 2012
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While a district court ruled that a title insurer was liable under the policy for an unremovable defect, it left it up to the South Carolina Supreme Court to determine how to calculate the damages. Read
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Fifth Third Mortgage Co. v. Chicago Title
Posted Date: Thursday, August 30, 2012
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After it was discovered that a title agent and straw buyer defrauded a lender, the lender went to its title insurer for coverage. The underwriter denied the claim. In the suit that followed, the underwriter argued that it was not required to indemnify the lender because if the lender had better underwriting practices, it would have discovered the scam. The case eventually went before the 6th U.S. Circuit Court of Appeals.
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Gondeck v. Clear Title
Posted Date: Wednesday, August 22, 2012
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After discovering they were victims of a real estate investment scheme, two investors sued the escrow company that conducted the scam, as well as the company’s title insurer. The title insurer argued that it should not be party to the suit because the escrow company wasn’t its agent for escrow purposes. Its motion to dismiss the claims against it went before the U.S. District Court for the Northern District of Illinois.
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Plymouth County Iowa v. MERS
Posted Date: Tuesday, August 21, 2012
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In the latest news on county recorders’ efforts to recover funds from secondary market entities, a U.S. District Court judge in Iowa dismissed a claim against Mortgage Electronic Registration Systems Inc. and its partners brought by the Plymouth County recorder of deeds. Read on for the court’s reasoning.
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White v. Conestoga Title
Posted Date: Monday, August 20, 2012
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The Pennsylvania Supreme Court found that, though a homeowner had to exhaust administrative remedies before bringing a claim for unjust enrichment and money had and received against a title insurer she claims overcharged her for title insurance, she could proceed against the title company on her claim for a violation of the state’s Unfair Trade Practices and Consumer Protection Law.
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Sparks v. Pate-Campbell Properties
Posted Date: Friday, August 17, 2012
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After selling a second parcel of land to a company in Kansas, the sellers discovered they had already conveyed more property than they had planned during the first sale. The deed had been recorded with the wrong acreage. The couple attempted to remedy the problem with the buyer, but ended up suing the company and the title insurer who conducted the transaction.
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Fidelity v. Captiva Lake Investments
Posted Date: Friday, August 17, 2012
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A title company refused to give a claims report to the successor in interest to a loan policy it issued. The policy holder moved to compel the information. The case went before the U.S. District Court for the Eastern District of Missouri.
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Mahon v. Chicago Title
Posted Date: Friday, August 17, 2012
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A home owner in Connecticut brought a suit against her title insurer, alleging the insurer overcharged her, as well as others, for title insurance when they were refinancing the mortgages on their property. The insurer attempted to have the case dismissed in a judgment on the pleadings, but was unsuccessful.
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First American v. Apex Title
Posted Date: Thursday, August 16, 2012
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After having to make several payoffs that should have been made through an attorney’s escrow account, a national title insurer sued the attorney, his family and their other businesses. However, the underwriter also sued the bank where the attorney held his escrow accounts. The attorney filed a counterclaim against the bank as well, arguing that the bank should have notified him directly and returned insufficient checks rather than allowing the account to go into overdraft.
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Ahmad v. Old Republic
Posted Date: Monday, August 13, 2012
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Following its reversal in Benavides v. Chicago Title based on similar issues, the 5th U.S. Circuit Court of Appeals reversed a Texas district court’s grant of class certification in a reissue rate case against another national underwriter.
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FIrst American v. Western Surety
Posted Date: Wednesday, August 8, 2012
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After receiving answers to certified questions by the Virginia Supreme Court, the 4th U.S. Circuit Court of Appeal determined that a title insurer was covered as subrogee for a lender under a required surety bond.
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First American v. Resource Real Estate Services
Posted Date: Tuesday, August 7, 2012
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A national title insurer sought reimbursement from its agent after indemnifying an insured in a series of court actions stemming in part from the agent’s negligent acts. The agent refused and sought to dismiss the suit that followed.
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Ritchie v. Capital Indemnity Corp.
Posted Date: Tuesday, July 31, 2012
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A federal court granted a fidelity bond claimant partial summary judgment against the insurer, after the claimant’s escrow funds were embezzled by the escrow officer. The insurer had denied the claim for a host of reasons, including that the bond had been cancelled 10 days before the claimant had deposited funds with the escrow company.
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MacDonald v. Old Republic
Posted Date: Tuesday, July 31, 2012
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The U.S. District Court for the District of Massachusetts found a national title insurer liable for a negligent title search that was done by its agent. The insured sued the title insurer after discovering he had been sold fictitious condominiums as part of a Ponzi scheme.
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Associated Bank v. Stewart Title
Posted Date: Friday, July 27, 2012
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The U.S. District Court for the District of Minnesota broke down the parties’ arguments in determining what duties a title insurer had to a lender who had discovered it was a victim of a real estate investment scam. The buyer had made the loan unknowingly, thinking it was part of a group of real estate investors. The lender and buyer reached a settlement on the amount owed before the lender sued the title company for breach of contract.
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Wasserberg v. Flooring Services of Texas
Posted Date: Tuesday, July 24, 2012
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A Texas appellate court affirmed a judgment against homebuilders in favor of a title company who had paid off mechanic’s liens on behalf of the new homeowners. The homebuilders had signed affidavits allegedly claiming all contractors had been paid. The court also affirmed a judgment on behalf of the flooring company who filed the mechanic’s liens, noting that the homebuilders had provided personal guaranties in their individual capacities to obtain a line of credit with the flooring company.
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Boucher v. First American
Posted Date: Tuesday, July 24, 2012
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In a second attempt to certify a class of Washington state homeowners who had allegedly been overcharged for title insurance during a refinance transaction, a couple once again fell short of providing the needed information to prove to the court that they can efficiently and reliably identify class members.
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Stewart Title Guaranty v. Revolutionary Marketing
Posted Date: Thursday, July 19, 2012
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National underwriter Stewart Title Guaranty Co. went after the co-conspirator of one of its agents, seeking the money the conspirator received from the agent’s escrow account. The magistrate judge assigned to the case was asked to make a recommendation as to Stewart’s motion for default judgment as to the co-conspirator.
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Saul v. Fidelity
Posted Date: Wednesday, July 18, 2012
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When refinancing her property, a homeowner in New York found that Home Heating Oil Corp. had obtained a UCC-1 fixture filing against her property to cover debt owed by the previous owner. After the title insurer denied coverage because the fixture was not part of the property, a trial court in New York had to determine whether such a lien was actually covered.
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United Community Bank v. Prairie State Bank and Trust
Posted Date: Wednesday, July 11, 2012
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A purchaser and seller hammered out an unrecorded purchase agreement, unaware of a judgment lien placed on the property. The title company who insured the transaction didn’t identify the lien, but paid off the most senior lien, a construction loan. When the issue of who had priority came before a trial court in Illinois, the trial court sided with the judgment lien holder, saying the title company should be the real party in interest because it was providing the defense because of its mistake in not identifying the judgment lien. The purchaser appealed the decision to the Fourth District Appellate Court of Illinois.
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WIlliams v. North American Title
Posted Date: Monday, July 9, 2012
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A California homeowner who had resolved issues surrounding a sewer line that ran through his property by reaching a settlement with his title insurer tried to get the insurer to indemnify him against a suit his neighbor brought against him regarding the sewer line. One condition of the settlement was that the homeowner would not bring any related claims to the insurer in the future.
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Galiano v. Fidelity
Posted Date: Tuesday, July 3, 2012
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Finding the plaintiffs had not alleged factual content to support their claim that title insurers in New York paid kickbacks to their title agents for business referrals, the 2nd U.S. Court of Appeals affirmed a lower court decision dismissing the case.
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Eaton v. Federal National Mortgage Association
Posted Date: Friday, June 22, 2012
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After months of anticipation and concern on the part of consumer advocates and members of all aspects of the mortgage industry, the Massachusetts Supreme Judicial Court (SJC) handed down a decision in Henrietta Eaton v. Federal National Mortgage Association (No. SJC-11041), and the answer they gave provided something for both sides to cheer about.
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Barton v. Vallejos
Posted Date: Friday, June 15, 2012
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Sometime after the sale of property in Utah, the purchasers discovered an oil and gas company was going to drill on their property, making part of the property unusable. They sued the sellers and the escrow company, who they felt breached the title policy and engaged in negligent misrepresentation by not informing them of the lease. Read on to find out what the U.S. District Court for the District of Utah had to say when the escrow company filed a motion for summary judgment against the buyer.
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Wilmington Plantation v. Fidelity National Title
Posted Date: Tuesday, June 12, 2012
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Wilmington Plantation LLC, the purchaser of property to be used to build condominium units, sued its title insurer, Fidelity National Title Insurance Co., for breach of contract after discovering that the use of the property was restricted by agreements the seller made to condominium unit purchasers before the sale. The developer alleged it had no knowledge of the defect and that Fidelity broke the agreement by not providing title in fee simple. The U.S. District Court for the Middle District of Tennessee had to determine whether Wilmington had, or should have had, knowledge of the defect when ruling on Fidelity’s motion for summary judgment.
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Perme v. Union Escrow
Posted Date: Thursday, May 31, 2012
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An escrow company and a mortgage lender in Ohio challenged the certification of a class in a suit against it in which the class representative alleges the companies have overcharged sellers and buyers since 1987.
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Hogan v. Washington Mutual Bank
Posted Date: Tuesday, May 22, 2012
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An Arizona homeowner failed to persuade the Arizona Supreme Court that a trustee must hold the promissory note before foreclosing on a deed of trust. The court affirmed the decision of both the trial court and the appellate court in making its decision on this case of first impression in the state.
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Hyjurick v. Commonwealth Land TItle
Posted Date: Friday, April 27, 2012
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As part of a case in which the insured was seeking coverage after discovering she did not receive title to a portion of the property she purchase, the U.S. District Court for the Middle District of Pennsylvania had to determine when it was appropriate to grant abstention. The insured had filed suit in state court and federal court alleging claims of bad faith in handling her claim.
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Peterson v. McCavic
Posted Date: Wednesday, April 18, 2012
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After spending several months building on property he thought he purchased, a man in Oregon found that he had actually purchased an adjacent lot in the same development. As part of a series of court proceedings, he sued the title company for changing the lot number in the title commitment and deed without informing him or the seller of the property.
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First Tennessee Bank v. Lawyers Title
Posted Date: Tuesday, April 17, 2012
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A division of First Tennessee Bank loaned money to an individual under the assumption the company was secured by a second mortgage. First Tennessee soon realized, however, that Countrywide Home Loans had obtained a superior lien, making First Tennessee a third mortgage. Countrywide Home Loans began a foreclosure proceeding, causing First Tennessee Bank to fight for indemnification.
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First American Title v. Gregory Lyons
Posted Date: Tuesday, April 17, 2012
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An insured tried to SLAPP down a lawsuit filed against it by an underwriter trying to regain money it spent to clear a judgment lien. The company argued the insured misrepresented the status of the property and the judgment lien. Read on to find out what happened when the case went before the Court of Appeal, Fifth District, California.
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Dyer v. Stewart TItle
Posted Date: Monday, April 16, 2012
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After an alleged swindle, Michelle Dyer attempted to recover monetary damages she lost. Her payments, held in the defendant’s Title Connection escrow, were disclosed to two individuals working for Harbor Funding without an established loan commitment or a loan closing schedule. Dyer files suit for securities fraud, breach of contract and professional negligence.
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CitiMortgage v. Absolute Title
Posted Date: Monday, April 2, 2012
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After it was discovered that a closing agent failed to pay off prior mortgages when conducting several refinance transactions, the lender went to the underwriter to make it whole. When the underwriter denied the claim, the lender sued for breach of contract, among other things.
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Hart v. Ticor Title
Posted Date: Tuesday, March 27, 2012
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The Supreme Court of Hawaii recently decided whether a title company had a duty to defend an insured homeowner in a dispute with the state over the state’s claims on the property. The insurer argued that it was not required to defend the insured because no actual claims to the title were being made. The insured disagreed, saying that the potential for a claim was cause for the insurer to step in.
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Tavenner v. The Talon Group
Posted Date: Monday, March 26, 2012
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A dispute over allegedly improper closing costs caused a U.S. District Court judge in Washington to examine the role of the escrow agent. Read on to find out what he had to say about the escrow agent’s responsibilities.
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Hawks v. American Escrow
Posted Date: Friday, March 16, 2012
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After an escrow company was sued for failing to disburse escrow funds to satisfy buyers’ obligations, it turned to its liability insurer to defend it in court. When the liability insurer denied coverage, the escrow company filed suit against it.
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Mitchell-Tracey v. United General
Posted Date: Wednesday, March 14, 2012
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After two underwriters successfully convinced a Maryland court that homeowners must first seek an administrative remedy before suing the insurers in a reissue rate dispute, they were awarded costs. The homeowners sought reconsideration, claiming that the insurers were not prevailing parties under the law. The motion was brought before the U.S. District Court for the District of Maryland.
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Tudor Insurance Co. v. 1st National Title Insurance Agency
Posted Date: Monday, March 12, 2012
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After a liability insurer sued a title agent it insured, the agent’s underwriter tried to step in. Both parties to the suit opposed intervention when the motion came before the U.S. District Court for the District of Utah.
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First American v. MacLaren LLC
Posted Date: Friday, March 9, 2012
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After a mistake on a deed provided the buyer more land than agreed upon, the seller sued the purchaser to fix the deed. Fighting the suit against it, the purchaser tendered defense of the suit to its title company. The title company then filed suit against the purchaser, seeking declaratory judgment finding it did not have to defend the initial suit. Read on to find out what the U.S. District Court for the District of Delaware had to say about the case.
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Miller v. LandAmerica
Posted Date: Wednesday, March 7, 2012
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After being sued by the county for placing improvements on their property based on an incorrect survey provided at closing, homeowners in Texas sued their title company. They made claims for negligent misrepresentation and deceptive trade practices because the title company gave them the survey at closing. Read on to find out what the Court of Appeals of Texas had to say on the matter.
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Shaw v. Freeman
Posted Date: Tuesday, March 6, 2012
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A Connecticut property owner sued the attorney who conducted the title search and closing on the property after the city of Hartford bulldozed the building for violations of city code and emergency repair, notifications of which were in the property records before she purchased the property. The trial court granted summary judgment in favor of the attorney and the case went to the Connecticut Appellate Court.
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Howland v. First American
Posted Date: Tuesday, March 6, 2012
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A national underwriter’s attorney title agent program in Illinois was called into question by homeowners who felt the program violated RESPA Section 8, as well as state laws. The plaintiffs tried to get class certification, but were denied twice by the district court. Read on to find out how the 7th U.S. Court of Appeals ruled on the matter.
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First Merchants Bank v. Gower
Posted Date: Friday, March 2, 2012
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After an order of sale in a foreclosure action had already been entered, and without either party objecting to the procedure, a trial court in Ohio brought into question a law governing foreclosures in the state. The Ohio Attorney General stepped in and asked for an appeal of the court’s decision.
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First American v. Western Surety Co.
Posted Date: Friday, March 2, 2012
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The Virginia Supreme Court ruled that title insurance companies operating in the state can sue under a surety bond issued as required under the Virginia Consumer Real Estate Settlement Protection Act, a question that had been plaguing the state’s trial courts.
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Data Trace v. Cuyahoga County Fiscal Officer
Posted Date: Wednesday, February 29, 2012
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In a win for industry members seeking access to property records at a reasonable cost, the Ohio Supreme Court ruled in favor of two title search companies who sought a writ of mandamus ordering the Cuyahoga County Fiscal Officer to provide electronic copies of real estate title documents at the actual cost of copying the digital images of the requested documents. Read on to find out the court’s reasoning.
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Chicago Title v. Washington State Office of the Insurance Commissioner
Posted Date: Wednesday, February 29, 2012
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Chicago Title Insurance Co. recently sought reversal of a Washington State Office of the Insurance Commissioner ruling, arguing that the ruling erroneously imposed vicarious liability on the title insurer for the regulatory violations of its agent, merely because the insurer underwrites the agent’s insurance policies. Read on to find out what the Court of Appeals of Washington had to say when it ruled in the case.
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GMAC Mortgage v. First American
Posted Date: Tuesday, February 28, 2012
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The U.S. District Court for the District of Massachusetts is asking the state’s Supreme Judicial Court to answer certified questions regarding whether a title insurer was obligated to defend a lender against all related claims after curing a title defect through litigation. This is a case of first impression in the state.
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Fey Family v. Commonwealth
Posted Date: Tuesday, February 28, 2012
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A California appellate court upheld a lower court’s dismissal of the title insurance defendants from a negligence case for failure to state a cause of action, noting that the plaintiff failed to allege facts to show the companies owed it any duty of care and opining that no amendment could cure the defects.
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Chase v. Shelton
Posted Date: Monday, February 27, 2012
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The Supreme Court of Georgia recently heard a case involving title to a house in Forsyth County, Ga., in which title to the property was clouded when a man transferred property via quitclaim deed to his wife and children and later purportedly transferred the property back to himself. The property was later foreclosed upon, purchased by another lender and re-sold to third-party buyers.
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Duffy v. Lawyers Title
Posted Date: Friday, February 24, 2012
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A district court denied a title insurance company’s motion to dismiss in an equity skimming case, saying the caselaw was unclear as to whether the plaintiffs could properly plead a violation of Pennsylvania’s Unfair Trade Practices and Consumer Protection Law under the circumstances. The court also refused to dismiss a civil conspiracy claim, saying at this stage of the proceedings, the exact relationship of the parties cannot be ascertained for the purposes of determining the relevance of the intracorporate conspiracy doctrine.
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Greenapple v. Capital One
Posted Date: Tuesday, February 21, 2012
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The New York Supreme Court, Appellate Division, held that prospective purchaser sufficiently alleged a cause of action against escrow agent for breach of fiduciary duty, overturning the lower courts granting of the escrow agent’s motion to dismiss, and returning the case to trial. The court said the defendant had failed to “utterly refute the allegations” in the plaintiffs’ complaint.
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Branch Banking and Trust Co. v. First American
Posted Date: Friday, February 17, 2012
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A federal district court ordered a plaintiff to join additional parties to a lien dispute case, saying the title insurer could not establish liability for loss or damage until there was a final determination of ownership and/or lien priority. Read on for details about the complicated land transaction that led to the dispute.
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Forbes v. Chicago Title
Posted Date: Friday, February 17, 2012
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A California appellate court determined that a title company was not liable for damages where the agent recorded the deeds provided by the client and issued the insurance policy. In its role as escrow holder, the court said, the company had no duty to determine whether the property description was accurate. The owner of the property contended that had asked for two sections of a property to be transferred and insured, while the legal description on the deeds referred to only one section.
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Goodin v. Fidelity
Posted Date: Tuesday, February 14, 2012
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The purchaser of property in Hawaii who had to fight to gain possession of his property after discovering a couple occupying the house sought reimbursement of the cost to defend the suit from the title company, which refused to defend the owner in the matter.
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Deutsche Bank v. Lippi
Posted Date: Friday, January 20, 2012
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The Fifth District Court of Appeal of Florida reversed a circuit court judgment, finding that an assignment endorsed in blank of a promissory note and an allegation that it was the owner and holder of the note at the time of a foreclosure filing was enough to establish standing.
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Arthur Chassen v. Fidelity National Financial Inc
Posted Date: Tuesday, January 10, 2012
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Last year the U.S. Supreme Court decided that the Federal Arbitration Act preempted a California law regarding the unconscionability of arbitration waivers. Until that point, a class action suit against several title insurers alleging their settlement agents violated individual closing protection letters did not address the letters’ arbitration clause. Once the decision was rendered, however, the title insurers indicated their intent to arbitrate and asked the U.S. District Court for the District of New Jersey to compel arbitration.
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Shawn Krock v. Financial Title
Posted Date: Monday, January 9, 2012
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A borrower who feels he was wrongfully foreclosed upon sued numerous entitles involved in the origination and servicing of his loan, including the title company that handled his closing. Read on to find out what the U.S. District Court for the Eastern District of California had to say when the defendants filed a motion to dismiss several of his claims.
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CSK Investments LLC v. Select Portfolio Servicing
Posted Date: Tuesday, January 3, 2012
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To fulfill a capital contribution requirement with his investment company, the owner of property in Scottsdale, Ariz., delivered the property to the company by quitclaim deed. When it was discovered that there was a mortgage on the property and it was being sold at trustee’s sale, the owner sued his title company to enforce the policy.
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MIchigan Properties v. Chirco Title
Posted Date: Tuesday, January 3, 2012
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After purchasing property with what it thought was clear title at a foreclosure sale, an insured purchaser was drawn into a lien dispute. Though the title company defended the owner and cleared title to the property, the owner sued its title agent and underwriter for not clearing title sooner.
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Commonwealth Property Advocates v. MERS
Posted Date: Friday, December 23, 2011
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The third-party buyer of three pieces of property in Utah, who purchased the property from defaulting borrowers, sued the various defendants who held interests in the property, seeking to prevent foreclosure. The company argued that the defendants had no authority to foreclose because the notes had been securitized, necessitating the approval of each investor in order to foreclose. After each of three cases was dismissed, the purchaser appealed to the 10th U.S. Circuit Court of Appeals.
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Bourne v. Stewart Title
Posted Date: Wednesday, December 7, 2011
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After a property owner got into a series of property disputes with a town in New Hampshire, he turned to his title company to defend him. When the company refused, he sued for breach of contract. The case eventually made it to the U.S. District Court for the District of New Hampshire on cross-motions for summary judgment.
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Sageser v. Stewart Title
Posted Date: Tuesday, December 6, 2011
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The seller of property in Washington state questioned a reconveyance tracking fee on his HUD-1, but went along with the sale anyway. Later on, he sued the title company for charging the fee.
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Villanueva v. First American
Posted Date: Thursday, December 1, 2011
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A Georgia lawyer was sued for breach of contract and malpractice after his firm failed to pay off mortgages at a real estate closing. The disbursement of those funds was to be handled by his partner and an escrow account signatory, as instructed. The newly-established lawyer had suspicions about the acts of his partner’s escrow signatory.
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Meisterlin v. California Land TItle Association
Posted Date: Thursday, November 17, 2011
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After a title insurer in California denied homeowners’ claims, the homeowners sued the state’s trade association for false advertising. They claimed that they relied on the advertisement in making their decision to purchase title insurance and that they lost money as a result of the violations.
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Austin v. Investors Title
Posted Date: Tuesday, November 8, 2011
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A South Carolina homeowner decided to try one last time to appeal the decision in a claim dispute with her underwriter to the 4th U.S. Circuit Court of Appeals. The issues in the case had been litigated in a previous case that worked its way up from the U.S. District Court for the District of South Carolina.
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Hopper v. Lawyers Title
Posted Date: Friday, October 21, 2011
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A title insurer refused to release funds held as part of an indemnity agreement, alleging the property owner had failed to perform under the agreement. The property owner sued, A trial court entered a judgment of dismissal on the property owner’s lawsuit against the insurer, but on appeal the court reversed, saying there were too many factual disputes to sustain the demurer.
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Kasco v. Chicago Title
Posted Date: Wednesday, October 19, 2011
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A court had to determine whether to award damages and how much should be awarded to a property owner who was prevented from developing his property for five years due to an undiscovered easement across his entire property. The easement was eventually shortened due to a settlement between the property owner and the holder of the easement, without the help of the title company.
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Francis Bevilacqua v. Pablo Rodriguez
Posted Date: Tuesday, October 18, 2011
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In a much anticipated decision by the Massachusetts Supreme Judicial Court (SJC), the court held that a third party purchaser at a foreclosure sale did not hold title to a property that had improperly been foreclosed upon by the foreclosing lender.
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Stewart TItle v. Shelby Realty Holdings
Posted Date: Friday, October 14, 2011
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The Alabama Supreme Court declined answering a certified question from the U.S. District Court for the Northern District of Alabama, which asked the court to determine whether an insured’s valuation evidence is limited to the use to which the property is being devoted as of the date of the discovery of the defect of title.
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National Union Fire Insurance v. Absolute Title Services
Posted Date: Thursday, October 13, 2011
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After being sued in state court by their underwriter for their alleged participation in a mortgage fraud scheme, a title insurance agency, its owners and two employees looked to their liability insurer to defend them. The liability insurer refused and sought declaratory judgment confirming that it was not required to defend the agent in the case.
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Fifth Third v. Hance
Posted Date: Thursday, September 29, 2011
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Can a closing protection letter (CPL) be issued post closing, or is a CPL, by its very nature, legally a prospective, rather than retroactive document? Two Michigan judges wrangled over the contractual language and arrived at far different conclusions.
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Hawkins v. Weichert Title Agency
Posted Date: Wednesday, September 28, 2011
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When a New Jersey couple was taken to court by their neighbors to settle a boundary dispute, the couple turned to their title insurance company to defend them. After the title company denied their claim, they filed suit for breach of contract and breach of fiduciary duty. The case eventually went to the Superior Court of New Jersey, Appellate Division on the title insurer’s motion to dismiss.
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Tyson v. Chicago Title
Posted Date: Tuesday, September 27, 2011
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A title insurer that fixed legal descriptions of the warranty deeds for units of a duplex that had been mistakenly switched was sued for negligence by the owner of one of the units after the owner was named in a quiet title suit to address the switched legal descriptions on her mortgagee’s deed of trust.
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Texas Capital Bank v. First American
Posted Date: Tuesday, September 27, 2011
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A warehouse lender sued a title company for breach of contract after discovering the originating lender had defrauded it of millions. It argued that had the title company reported suspicious requests it received from the originator, the warehouse lender would have been able to prevent the fraud.
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Home Federal Savings Bank v. Ticor Title
Posted Date: Tuesday, September 27, 2011
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A federal trial court granted summary judgment to a title insurer in a mechanics’ lien claims case, refusing to grant the lender the ‘windfall’ they sought after they refused to release construction funds to satisfy the lien.
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Tabatabai v. Emerald Estate Escrow
Posted Date: Friday, September 23, 2011
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An incarcerated homeowner sued the escrow company that conducted the escrow for a real estate transaction in which the man to whom he had given a power of attorney and his business partner defrauded the homeowner of title to his property in Beverly Hills.
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First American v. Ordin
Posted Date: Wednesday, September 14, 2011
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After purchasing title insurance and transferring title to their property several times, property owners in California discovered an encroachment on their property that prevented them from selling it. The claim dispute eventually went to arbitration. When the arbitrator ruled in favor of the property owners, the title insurer appealed.
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US vs. Deer
Posted Date: Friday, September 9, 2011
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A federal court awarded restitution to two underwriters and a closing agent, as well as several lending institutions, in a fraud case, refusing to buy the perpetrator’s argument that the value of the security should offset restitution where one of the underwriters had suffered nearly a million dollar loss in claims based on the fraud.
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MGD Partners v. First American
Posted Date: Thursday, September 8, 2011
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A federal appellate court determined that a marketability problem with a property in Louisiana was not due to a defect in title, but rather due to the condition of the property, where the new owners discovered bomb remnants on the property. The trial court had granted the title insurer summary judgment, concluding that the landowner’s claim was not covered under the title insurance company’s policy. The landowner appealed, arguing that a servitude was created on the property under a Louisiana statute.
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Stonich v. First American
Posted Date: Wednesday, September 7, 2011
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Homeowners in California sold a house to their children, receiving a $75,000 promissory note in exchange. When their children refinanced the mortgage on the property, the parents believed they would receive those funds, but didn’t. They turned and sued the title company that conducted the refinance for negligence and breach of trust.
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Chapman v. Commonwealth
Posted Date: Thursday, September 1, 2011
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After allegedly being charged an unearned fee for title insurance when he refinanced his mortgage, a Texas homeowner sued his title insurer for money had and received, unjust enrichment, violations of RESPA and breach of implied contract. When the RESPA claims were dismissed, the title insurer motioned for summary judgment on the state law claims, arguing that the court lacked subject matter jurisdiction over these issues.
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Scott v. First American
Posted Date: Tuesday, August 30, 2011
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A U.S. district court judge in Kentucky denied class certification to a group of homeowners who alleged they received the wrong discount when they refinanced their mortgages.
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Shapiro v. Kennedy
Posted Date: Monday, August 15, 2011
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An appellate court judge in California tossed a shareholder suit against the parent company of one of the nation’s largest title insurers, which alleged that the company knew about misdeeds of its title insurance subsidiary and did nothing to stop them.
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Prime Real Estate Closing & Escrow v. Heberlling
Posted Date: Tuesday, August 9, 2011
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After a misunderstanding led an escrow company to pay off the wrong mortgage in a refinance transaction, the owner used money provided to fix the mix-up to purchase additional property. When the escrow company had to pay its title insurer for a claim brought because of that mistake, the escrow company sought restitution from the property owner.
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Lakeside National v. Chicago Title
Posted Date: Wednesday, August 3, 2011
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An insured lender sued its title agent and title insurer after failing to get notice that the property it held a lien on was going to be razed by the City of Baltimore because the agent failed to record the deed properly. Read on to find out what the U.S. District Court for the District of Maryland had to say when the insurer filed a motion to dismiss the claims against it.
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Branch Banking and Trust v. Nevada Title
Posted Date: Wednesday, August 3, 2011
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After failing to establish the primacy of an outstanding loan in state court, a defunct bank’s successor filed a federal suit against the title insurer involved in the deal. The court dismissed the complaint under the doctrine of collateral estoppel. The successor asked the court to amend its order, arguing that court’s finding regarding a Federal Deposit Insurance Corp. (FDIC) purchase and assumption agreement should be removed from the record because the issues involved were not litigated at the state level. The court denied the motion, determining that collateral estoppel should apply.
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16th & K Hotel v. Commonwealth
Posted Date: Wednesday, August 3, 2011
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A title insurer was sued for breach of the owner’s policy by a hotel that was unable to expand the property it purchased because of an undisclosed brick wall that attached the purchased property to the next lot. The title insurer demanded that the case be dismissed because the hotel’s lenders had not joined as parties to the suit.
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Rodriguez v. Lakeview Title
Posted Date: Wednesday, July 27, 2011
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The seller of property in Angola, Ind., sued the title agency that handled his transaction after the company’s independent abstractor failed to discover unpaid property taxes. The case eventually was heard by the Court of Appeals of Indiana.
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Puri v. First Southwestern Title
Posted Date: Monday, July 25, 2011
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The First District Court of Appeal of California heard a case in which the holder of a third deed of trust on property sold in a short sale, who did not have his lien satisfied, eventually sued the title company who conducted the title work for attorneys fees after having to defend his lien against the property.
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266 Summit LLC v. Lawyers Title
Posted Date: Friday, July 22, 2011
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When an insured party to a series of transactions gets sued in multiple cases, it turns to the title insurer to defend it. When the insurer refuses to pay for the insured party’s loss, the insured party sues, leaving it up to the U.S. District Court for the District of Minnesota to decide.
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Close, Jensen and Miller v. Fidelity
Posted Date: Tuesday, July 12, 2011
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Title insurers for two properties sued the surveyor of buildings for damages after receiving claims from the owners due to encroachments that were not on the “as built” survey provided by the surveyor. After its liability insurer paid out damages to the title companies, the surveyor sued the title insurers to recover those damages. The case was eventually heard by the Appellate Court of Connecticut regarding whether the principles of res judicata had been properly applied in this case.
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Wedgewood Square Center v. Stewart Title
Posted Date: Thursday, June 30, 2011
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A Missouri appellate court determined that in releasing its lien in a full reconveyance settlement with defaulting borrowers, a company had effectively wiped out an underwriter’s subrogation rights and therefore was not entitled to reimbursement for nebulous losses under an alleged title impairment.
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Royale Westminister Retirement v. Commonwealth
Posted Date: Thursday, June 30, 2011
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When a forged deed gave rise to a false chain of title, several lawsuits followed. One of the companies involved attempted to establish that it was entitled to protection under a title insurance policy and that a title company had a duty to defend. An appeals court ruled that even if the company had received a policy, none of the causes of action the company faced gave rise to potential liability.
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In re Russell Looney
Posted Date: Wednesday, June 29, 2011
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A bankruptcy appellate court determined that debt owed to Old Republic Title Company of Tennessee, which had been reduced to judgment by a state court settlement agreement, was nondischargeable because the company had proven fraudulent misrepresentation.
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In Re California Title Insurance Antitrust Litigation
Posted Date: Monday, June 27, 2011
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As a result of the U.S. Supreme Court’s decision in AT&T Mobility LLC v. Concepcion, a California judge sent plaintiff homeowners’ suit alleging their title insurers fixed title prices to arbitration.
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U.S. v. Deer
Posted Date: Friday, June 24, 2011
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A federal court awarded restitution to two underwriters and a closing agent, as well as several lending institutions, in a fraud case, refusing to buy the perpetrator’s argument that the value of the security should offset restitution where one of the underwriters had suffered nearly a million dollar loss in claims based on the fraud.
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Little Italy Development v. Chicago Title
Posted Date: Friday, June 24, 2011
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A federal district court determined that a title insurer was obligated to provide a defense as to all of the claims in a title dispute, in spite of the fact that only one of the claims — a claim alleging public prescriptive easement — was actually covered by the policy. The underwriter had refused to defend the remaining claims on the basis that those causes of action alleged matters not insured against by the policy.
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JYS Investment v. Fisher
Posted Date: Wednesday, June 22, 2011
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When a would-be developer in New Jersey defaulted on a mortgage, the lender agreed to discharge the mortgage to allow the borrower to refinance. The refinance fell through and the borrower used a copy of the unrecorded discharge to secure another loan. The initial lender attempted to foreclose but a court ruled the discharge belonged to the borrower. An appellate court affirmed the lower court’s decision.
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Gibbs v. PrimeLending
Posted Date: Thursday, June 16, 2011
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When an Arkansas couple sued several parties following an apparent instance of escrow fraud, some of the alleged conspirators argued that the use of the conspiracy theory of in personam jurisdiction at the federal level violated state law. A U.S. district court presented the matter to the state supreme court in the form of a certified question. That court found that the conspiracy theory does not violate due process rights.
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Hamilton v. First American
Posted Date: Tuesday, May 17, 2011
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A federal appeals court vacated a district court's class certification order in a reissue rate case and remanded the case for reconsideration in light of a recent decision in which the court determined that individualized inquiries were necessary to determine whether particular persons qualify for a discounted reissue rate.
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Randleman v. Fidelity
Posted Date: Monday, May 16, 2011
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Citing the 5th U.S. Circuit Court of Appeals decision in Benavides V. Chicago Title, the 6th U.S. Circuit Court of Appeals determined that a class could not be certified in a reissue rate case based on the class description, and that the district court did not abuse its discretion by refusing to adopt a proposed case management plan that would have created subclasses to overcome a predominance barrier.
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Pump Shop v. Lawyers Title
Posted Date: Monday, May 16, 2011
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A Massachusetts appellate court affirmed the granting of summary judgment to a title insurer, where the insured willingly obtained a mortgage on a property, knowing that the former owner had not filed Massachusetts income taxes for the years 2001 through 2004.
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Levy Gardens Partners v. Lewis Title
Posted Date: Monday, May 16, 2011
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When the discovery of an old city law scuttled a New Orleans- housing project, the developer sued its title insurer seeking to collect under the policy’s zoning endorsement. In determining that the issue was covered under the policy, the court noted that a thorough abstract had apparently never taken place.
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Old Republic v. Warner
Posted Date: Wednesday, April 6, 2011
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A U.S. district court rejected defendants’ attempts to shift blame to PNC, after their indemnification agreement with Old Republic National Title Insurance Co. resulted in alleged losses of over $100,000, saying while it was clear the claims were related, there was little to show how PNC could be liable under an agreement between the defendants and Old Republic. The defendants had claimed that the losses Old Republic incurred — for which Old Republic is now suing to recover from the defendants — were a direct result of PNC’s failure to file a proper no-lien document, allowing a mechanic’s lien to secure a lien position ahead of the bank.
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Meridian Title v. Gainer Group
Posted Date: Monday, April 4, 2011
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The Appeals Court of Indiana determined that a trial court had erred in denying Meridian Title Corp.’s motion for summary judgment. The court concluded that there was no long-standing, intimate relationship between the buyer and the title company that would justify imposing a duty on the title company beyond its general duty of reasonable care, skill and good faith diligence in obtaining a policy of insurance.
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Loef v. First American
Posted Date: Monday, April 4, 2011
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The U.S. District Court for the District of Maine denied one national underwriter’s request for decertification of a class of homeowners who allege they were overcharged for title insurance when they refinanced their home.
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Double AA v. Lawyers Title
Posted Date: Monday, April 4, 2011
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Buyers sought determination that contract for construction and purchase of condominium was voidable, based on developer's failure to comply with its escrow obligations under Florida law, and also sought to recover from escrow agent. The United States District Court for the Southern District of Florida, No. 1:08-cv-23444-CMA, Cecilia M. Altonaga, J., 2010 WL 1258086, entered judgment in favor of buyers, and developer and escrow agent appealed.
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Plaza Layenda v. Lawyers Title
Posted Date: Thursday, March 31, 2011
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Lawyers Title of Arizona, Inc. (“Lawyers Title”) appeals from the trial court's judgment after a trial to the court in favor of the Richard L. Jones Revocable Trust (“the Trust”) and Plaza Leyenda, LP, which had sued Lawyers Title for negligence and breach of fiduciary duty. The claims arose from the failure of Lawyers Title, the escrow agent, to promptly notify Plaza Leyenda and the Trust that the check provided by the buyer of a piece of property Plaza Leyenda was selling had been returned for non-sufficient funds. Plaza Leyenda contended that, as a consequence, it was unable to accept a bid for construction on the property, resulting in an increase in construction costs. Plaza Leyenda and the Trust appeal the trial court's denial of its request for attorneys' fees. For the following reasons, we hold that Lawyers Title breached no duty to the Trust and so vacate the judgment in favor of the Trust. We affirm the court's verdict in favor of Plaza Leyenda on its claims of negligence and breach of fiduciary duty. We vacate, however, the court's award of damages and remand with an order to recalculate damages in accordance with this decision.
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Commonwealth v. Higgins
Posted Date: Monday, February 7, 2011
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Florida homeowners sued two title insurers alleging they were not provided a reissue rate discount when they refinanced their home loans. After a trial court granted class certification to Florida homeowners who allege they were not provided a reissue rate when they refinanced their home, the title insurers appealed the decision.
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Grill v. Ticor Title
Posted Date: Wednesday, February 2, 2011
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The owner of property in Nevada County, Calif., sued his title insurer when the insurer denied his claim. The company had argued that it had already addressed the underlying issue in the claim and that the owner was no longer the insured under the policy after the owner had put the property in a trust.
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McDonough v. First American
Posted Date: Friday, January 28, 2011
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New Hampshire homeowners filed suit against a national title insurance company, alleging the company used a “network of title agents” to conduct a Racketeer Influenced and Corrupt Organizations Act scam, overcharging them for title insurance during their refinance transactions.
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M&I Bank v. Wright
Posted Date: Wednesday, January 19, 2011
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The court has before it defendant Lawyers Title of Arizona, Inc.'s motion to dismiss, plaintiff M & I Bank's response , and Lawyers Title's reply. We also have before us defendant First American Title Insurance Company's motion to dismiss (doc. 29), plaintiff's response, and First American's reply. Finally, we have before us First American's joinder in Lawyers Title's motion (doc. 54), plaintiff's response, and First American's reply.
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U.S. Bank v. Ibanez
Posted Date: Friday, January 7, 2011
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After foreclosing on two properties and purchasing the properties back at the foreclosure sales, U.S. Bank National Association (U.S.Bank), as trustee for the Structured Asset Securities Corporation Mortgage Pass-Through Certificates, Series 2006-Z; and Wells Fargo Bank, N.A. (Wells Fargo), as trustee for ABFC 2005-OPT 1 Trust, ABFC Asset Backed Certificates, Series 2005-OPT 1 (plaintiffs), filed separate complaints in the Land Court asking a judge to declare that they held clear title to the properties in fee simple. We agree with the judge that the plaintiffs, who were not the original mortgagees, failed to make the required showing that they were the holders of the mortgages at the time of foreclosure. As a result, they did not demonstrate that the foreclosure sales were valid to convey title to the subject properties, and their requests for a declaration of clear title were properly denied.
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Windsor Village v. Stewart Title
Posted Date: Thursday, January 6, 2011
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Appellants, Windsor Village, Ltd. and Jackob Elbaz, appeal from the trial court's judgment awarding damages and attorney's fees to appellee, Stewart Title Company, on its claims for fraud and indemnity. We affirm, in part, and reverse and render, in part.
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Pavilion Park v. First American
Posted Date: Thursday, January 6, 2011
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Plaintiff, Pavilion Park, LLC (“Pavilion Park”) initiated this action against First American Title Insurance Company (“First American”) grounded upon contractual claims under First American's title insurance policy. Both sides have now moved for summary judgment. The Court finds that the contract issues are relatively straightforward. The Court will dismiss Pavilion Park's claims.
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GRK v First American
Posted Date: Thursday, January 6, 2011
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Defendants Quarles & Brad LLP, John O'Neal and Lauren Stein (collectively “Quarle Defendants” and, for the purposes of this motion, “Defendants”) move to dismiss Plaintiff' tortious interference with contract and abuse of proces claims. The motion has been fully briefed and the parties do not request oral argument. For the reasons stated below, the Court will grant in part and deny in part Defendants' motion.
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US vs. Deer - Example
Posted Date: Thursday, September 9, 2010
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A federal court awarded restitution to two underwriters and a closing agent, as well as several lending institutions, in a fraud case, refusing to buy the perpetrator’s argument that the value of the security should offset restitution where one of the underwriters had suffered nearly a million dollar loss in claims based on the fraud.
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