Title Insurance Law Journal

Title Insurance

• Insurer Did Not Delay Claim By Shifting From Clearing Title to Paying Loss: Mansur Properties LLC v. First American Title Ins. Co.
• Court Dismisses Tort Claims Made by Successor Insured Because Claims Were Not Assigned: Wells Fargo Bank N.A. v. Fidelity Nat’l Title Group, Inc
• Warranty Breach Subrogation Suit Viable: First American Title Ins. Co. v. Chesapeake Holdings GSG, LLC
• Mortgage Re-Recording is a Title Clearance Action: 21647 LLC v. Deutsche Nat’l Bank Trust Co.
• The Terms Loss and Damage Are Not Ambiguous: Stewart v. JP Morgan Chase Bank, N.A.

Escrow Matters

• Wire Fraud Bank Account Freeze Order Entered: Chicago Title Company, LLC v. Wilson Re Services, Inc.
• Vague Claim That Escrow Company Conspired in Fraud Not Enough: Tye v. Emerald Escrow
• Person in Charge of Construction Work Has Power to Waive Lien Rights: Gershom v. Triple N LLC
• No Professional Malpractice Claim Against New York Title Agency: Bellevue Towers and Gardens, LLC v. Atlantis National Services, Inc.

Conveyance News

• Claimed Business Entity Theft Victim Denied Injunction: IHarel Alternative Real Estate L.P. v. All Brooklyn Management LLC

Title Insurance

• Illinois Supports Defense of Covered Counts Only; Independent Counsel Not Required in Dispute Between Insureds: Findlay v. Chicago Title Ins. Co.
• Prior Litigation Did Not Prove That Insurer Had a Pattern of Delaying Communication With Insureds: Harrigan v. Fidelity Nat’l Title Ins. Co.
• Insured Has No Loss After Receiving Refund of Purchase Price: Louisiana Property Development, LLC v. U.S. Nat’l Title Ins. Co.
• Nevada HOA Lien Case Takes Different Slant: Bank of New York Mellon v. Stewart Information Services Corp.
• Statutes of Limitation Begin Running When Claim Denied: Regal Center, LLC v. Fidelity Nat’l Title Ins. Co.

Agent Focus

• Title Agent Owes No Duty to Competing Potential Buyer: Springbrook Village Batesville LLC v. Southeast Indiana Title Inc.

Escrow Matters

• Preference Transfer Occurred When Money Deposited With Court, Not When Money Disbursed: In re Holbert
• Loan Closing Attorney Had No Duty to Search Title for Buyer: Christian v. Messina

Conveyance News

• Georgia Again Permits Trustee to Avoid Security Deed Fixed by Affidavit: In re Antwinette Belintha Grier

Title Insurance

• Insured Assumed and Agreed to Known Title Risk: In re Pazzo Pazzo, Inc.
• Insured Not Entitled to Defense Merely Because Adverse Party Held Policy Issued by Insurer’s Sister Company: Murphy v. Commonwealth Land Title Ins. Co.
• Title Insurance Coverage Not an Alternative to Injunction to Keep Access Open: Flying T Ranch, LLC v. Catlin Ranch
• Filed Rate Overcharge Class Action Cases Back On: Sjobring v. First American Title Ins. Co.
• Policy Claim Assignment Valid But Insured Prevented Insurer From Clearing Title: Wallace v. Fidelity Nat’l Title Ins. Co.
• Lender May Collect From Borrower for Attorney Fees Paid by Title Insurer: Four Elyria Company, LLC v. Brexton Construction, LLC

Escrow Matters

• Purchase Contract Lawsuit May Be Filed in State Where Escrow Office is Located: STAG Williamsport, LLC v. BHN Associates, LLC

Conveyance News

• Court Refuses to Interpret Mortgage Tax Law: Presidential Title, LLC v. Mayor and City Council of Baltimore
• Judgment Lien Against Joint Tenant Extinguished on Debtor’s Death: Westberg v. Barcroft

Title Insurance

• Landmark Designation Not an Encumbrance on Title: Fawn Second Avenue LLC v. First American Title Ins. Co.
• No Policy Coverage for Claimed Defect in Title That Court Said Did Not Exist: SRHS Ambulatory Services, Inc. v. Pinehaven Group, LLC
• Insurer Collects Interest Against Seller Who Gave False Affidavit: Chicago Title Ins. Co. v. Crossroads Abstract Corp.
• Purchaser at Foreclosure Sale Has No Rights in Foreclosing Lender’s Policy: Nixon Family Partnership, LP v. Jet Lending
• First Circuit Makes Rulings on Measure and Date of Loss in Goat Island Condo Case: IDC Properties, Inc. v. Chicago Title Ins. Co.
• Insurer Denied Subrogation Against Seller: Commonwealth Land Title Ins. Co. v. JMG Investments, Inc.

Escrow Matters

• Escrowed Money Stolen by Attorney Not Protected by Client Protection Fund: Grebow v. Client Protection Fund of Bar of Maryland
• Unauthorized Delivery of Money is Slam Dunk Breach of Escrow: Medequa LLC v. O’Neill & Partners LLC
• Escrow Company and Title Insurer Owe No Duty to Spouse of Purchaser: Ticor Title Company of California v. Minkovitch

Conveyance News

• Sale Contract Signed by Beneficiary of Illinois Land Trust is Void: Biggers Holdings LLC v. Garcia

Title Insurance

• Exception Not Negated by Late Policy Issuance, Typo in Exception: Columb v. Cox
• Insurer Became Subrogee on Payment of Judgment in Favor of Insured: First Citizens Bank & Trust Co. v. Stearn
• Restriction Modified by Insured Is Excluded Despite Lack of Exception: 50 Clarkson Partners, LLC v. Old Republic Nat'l Title Ins. Co.
• Policy Terminates on Voluntary Conveyance: Kinzelman v. Stewart Title Guar. Co.

Agent Focus

• Selection of Florida in Agency Contract Choice of Law Provision Does Not Give Florida Court Personal Jurisdiction in Texas Policy Dispute: Fidelity Nat'l Title Ins. Co. v. North American Title Co.

Escrow Matters

• Customer Has Claims Against Bank to Recover Money Wired to Fraudster: Tracy v. PNC Bank, N.A.
• Escrow Must Be Formed by Written Instructions in Maryland: Tchorzewski v. Musick

Conveyance News

• Legal Description Not Modified by or Interpreted Based on Tax Parcel: XPO Logistics Freight, Inc. v. Hayward Property, LLC

Conveyance News

• Georgia Security Deed Avoided For Want of a Witness: In re Lindstrom

Agent Focus

• Non-Compete Protects Customer Lists, Title Plant: Combs v. Elite Title Co., Inc.
• Buyer Breached Title Agent Merger Agreement: Partner Reinsurance Co. Ltd. v. RPM Mortgage, Inc.

Escrow Matters

• Hyperlinked Commitment Likely Same as Delivery of Schedule B Documents: Estate of Wolfe Through Maass v. 224 Via Marila, LLC
• Texas Borrower Does Not Get "Free House" By Signing Loan Documents at Wrong Location: Dill v. Federal Home Loan Mortgage Corp.
• Second Mortgage Not Extinguished by First Mortgage Foreclosure That Was Set Aside: 1373 Moulin, LLC v. Wolf
• Seller Relied on Escrow Company to Properly Draft Deed: Rivera v. Mondragon
• Payoff Debt to Title Agent Dischargeable in Borrower Bankruptcy: Pinero v. Rodriguez (In re Rodriguez)

Title Insurance

• No Duty to Defend After Insured Disclaims Ownership: Sammy v. First American Title Ins. Co.
• Policy Assured Registration of Puerto Rican Mortgage; Tardy Claim Notice Not a Defense: Oriental Bank v. Old Republic Nat'l Title Ins. Co

Title Insurance

• Agreement Not a Title Insurance Policy Assignment: Hall CA-NV, LLC v. Ladera Development, LLC
• Seller Must Fix Title as Required by Title Insurer Named in Purchase Contract: Kingsland Investment LLC v. Tanriverdi

Agent Focus

• Texas Agency Owner Not Owed for Breakup of Unlicensed Business: Cooke v. Karlseng
• E & O Has No Duty to Defend Agent in Closing Fee Overcharge Case: RLI Insurance Co. v. Coastline Title of Pinellas, LLC

Escrow Matters

• Attorney Closing Agent Not Liable For Transfer Tax: McCloskey v. Talarico
• Forum Clause in Escrow Agreement Controls: AKS Trade Company, LLC v. Americap Direct Corp.
• Borrower May Sue Bank for Failing to Prevent Hacker From Stealing Loan Pay-Down Money: Burke v. Nationstar Mortgage, LLC

Conveyance News

• Restrictions Enforceable Although Recorded as Poison Pill During Foreclosure: Goering v. Huestis
• Lenders' Bona Fide Encumbrancer Status Depends on Validity of Powers of Attorney: Brasko v. Howard Bank

RESPA Alert

• Class Certified in Maryland RESPA Kickback Case

Title Insurance

• No Loss Due to Condo Ownership That Insured Knew About Before It Got Policy: Amerco Real Estate Co. v. First American Title Ins. Co.
• Exclusion 3(a) Bars Coverage for Agreement Signed by Insured That Caused His Title to Fail: Salas v. Commonwealth Land Title Ins. Co.
• Buyer Entitled to Object to Title Exception for Effects of Contract for Deed: West Loop Hospitality, LLC v. Houston Galleria Lodging Associates, LLC
• Texas Policy Does Not Bar Removal of Suit to Federal Court: Regal Center LLC v. Fidelity Nat'l Title Ins. Co.

Agent Focus

• E&O Policy Excludes Coverage for Wire Transfer Fraud Loss: ABL Title Ins. Agency, LLC v. Maxum Indemnity Co.
• Law Firm Liable for Issuing Title Report on Wrong Property: Crescent Mortgage Co. v. Freeman

Escrow Matters

• Maryland Attorney Escrowee Owed No Duty to Disclose Alleged Fraudulent Contract: Jay Geco, LLC v. City Properties 3, LLC
• UCC Does Not Automatically Protect Bank That Allowed Attorney to Steal Escrow Money: GSR Markets Limited v. McDonald

Title Insurance

• Lawsuit to Determine Lender's Policy Loss Amount Filed Prematurely: Fidelity Nat’l Title Ins. Co. v. Mid Atlantic Credit Union
• Court Suggests That Georgia Bad Faith Statute Sets Deadline for Title Clearance: May v. Old Republic Nat'l Title Ins. Co.
• Driveway Encroachments Do Not Invoke Access Coverage: Pierot v. Chicago Title Ins. Co.

Escrow Matters

• Texas Court Rules on EB-5 Immigration Escrow: Lin v. Veritex Community Bank, N.A.
• EB-5 Visa Applicants Share Equally in Remaining Escrowed Money That Was Not Segregated: S. Bank, N.A. v. Quartzburg Gold, LP
• Texas Has Jurisdiction Over People Paid From Texas Escrow: Capital Title of Texas, LLC v. Shank
• Escrow Principal Can Sue for Unauthorized Delivery of Loan Money to Borrower: Henley Finance, Ltd. V. Goyette & Associates, Inc.
• Escrowee Required to Deliver Deposit to Seller Because Buyer Not Prepared to Close on Appointed Day: Callava v. Yon

Conveyance News

• Judgment Lien Attaches to Equity Greater Than Statutory Homestead Exemption Amount: In re McLauchlan
• Texas Homeowners Cannot Use Constitutional HELOC Technicalities to Get Free House: Lopez v. JPMorgan Chase Bank, N.A.

Title Insurance

• Settlement Made by Title Insurer Enforceable by Insureds: Carter v. Homestreet Bank
• Insured's Collusive Settlement Bars Policy Coverage: Centerpoint Mechanic Lien Claims LLC v. Fidelity Nat'l Title Ins. Co.
• Debt Owed by Mortgage Broker Fraudster Non-Dischargeable: In re Park
• Insured Suffers No Loss From Title Defect Cured By His Own Adverse Possession: Stewart v. JP Morgan Chase Bank
• Policy Amount Serves as Amount in Controversy; Lender Cannot Sue Parent of Title Insurer: S. Bank, N.A., as Trustee v. Stewart Information Services Corp.

Escrow Matters

• Confused Refinance and Fraud Claims Barred by Statute of Limitations: Chowdhury v. WFG Nat'l Title Ins. Co.
• Disbursement of Loan Money After TILA Rescission Creates a Mess: Goldwater Bank, N.A. v. Kulikowski
• Attorney For Litigant Was Not an Escrowee: Fischer v. Boozer

Conveyance News

• Electronic Notarial Act Accepted by Court: Arceo v. Fidelity Nat'l Title Ins. Co.
• Court Voids Deeds in Suit That Did Not Name Grantees: Hwang v. FedEx Office and Print Services, Inc.

Title Insurance

• Hawaii Court Says Policy Insures Vehicular Access: First American Title Ins. Co. v. GS Industries, LLC  
• CPL Was an Offer That Lender Did Not Accept Because It Knew Agent Was Cancelled: First IC Bank v. North American Title Ins. Co.

RESPA Alert

• Class Suit Based on Broker Bonuses Paid for Referrals to Title Company Survives Dismissal Motion: Kallai v. Jatola Homes, LLC

Escrow Matters

• Notary Fulfilled Identity Verification Duty by Reviewing Apparently Legitimate Driver's License: North American Title Co., Inc. v. Gugasyan
• Forum Selection Clause in Escrow Agreement Not Binding on Officers: BAM International, LLC v. MSBA Group Inc.
• Escrow Bank Account Must Be Beyond Control of Escrow Principals: Tarpey v. United States

 Conveyance News

• No Double Dipping on Homestead Exemption: Big Bell 21, LLC v. Mills

HOA Liens

• Latest Developments in Nevada HOA Lien Coverage Cases:
  • THSBC Bank USA, N.A., as Trustee v. Fidelity Nat'l Title Ins. Co.
  • U.S. Bank, N.A., as Trustee v. Fidelity Nat'l Title Group, Inc.

Agent Focus

• Insurance Department Cannot Be Sued for Making False Allegations About Title Agent: SDS Title, LLC v. Arnold

Title Insurance

• California Constitutional Tax Exemption for Title Insurers Eviscerated: First American Title Ins. Co. v. California Dep't of Tax and Fee Administration
• Nevada HOA Lien Coverage Lawsuit Remanded So Court Can Decide if Insurer's Manual Would Make Policy Claim Viable: Wells Fargo Bank, N.A., as Trustee v. Fidelity Nat'l Title Ins. Co.
• Time to Sue Title Insurer Begins When Insured Learns of Matter Affecting Title: Rehabbers Financial, Inc. v. Chicago Title Ins. Co.
• Washington Insured Permitted to Sue Insurer For Claimed Shrinkage of Lot Size: Mansur Properties LLC v. First American Title Ins. Co.

 Escrow Matters

• Court Dismisses Class Action Suit Based on Failure to File Rates for Escrow Services Provided and Charged: Villanueva v. Fidelity Nat'l Title Co.
• Settlement Agreement Release Does Not Bar Claims Against Escrow Agent: Spirtos v. Metropolitan Title of Indiana, LLC
• Court AllowsInterpleader ofEscrowed Money Needed for Land Cleanup: Caticpro, Inc. v. 151 New Park, LLC
• Escrow Agreement Formed by Phone Calls and Emails: Advanced Oxygen Therapy Inc. v. Orthoserve Inc.