Court Reverses First American Verdict
May 30, 2007
NEW YORK (AP) -- Business information provider First American Corp. said a federal appeals court has reversed a $32.4 million punitive damages verdict against one of its subsidiaries.
First American said in a Securities and Exchange Commission filing Friday that the 6th U.S. Circuit Court of Appeals reversed the verdict in the case of Chicago Title Insurance Corp. versus James A. Magnuson.
The appeals court also ordered a new trial in on the $10.8 million compensatory damages verdict in the case, according to the filing.
During 2005, First American recorded a reserve of $10 million in connection with the case and said it's currently evaluating the appropriateness of this reserve in light of the court decision.
First American shares rose 2 cents to $53.17 in morning trading.
Coopyright 2007 Associated Press