Title insurer sued for vexatious refusal

Thinking it had a subordination agreement with the home equity lender on property in Missouri, the lender of a refinance mortgage moved forward with its transaction. The borrower defaulted on the home equity and when the home equity lender went to foreclose, the refinance lender discovered the subordination agreement never had been recorded. When its title insurer denied its claim, the refinance lender filed suit for breach of contract and vexatious refusal.