Legal Question in Insurance Law in California

Borrower received faxed confirmation of cancellation

Borrower did not want to go forward with title insurance transaction or loans associated with purchase. Escrow received cancellation instructions. Title was cancelled. Borrower called title to make sure that nothing was to record. Title informed Borrower that title policy was cancelled and faxed a copy of company print out as verification. The person also searched for any other open title orders and found none, and further assured that there was absolutely no way anyone could close the file without opening a completely new title order which would take longer than 24hours to do.

Needless to say the transaction went through just 3 hours later, using the original title order number.

A Judge told me today that the title company did not owe me any duty and therefore the letter meant nothing as well as the employees statements to me. This was a brokered transaction.

Was the judge correct? Cause of action was Negligence. I could not come up with another argument. So he would not even give me leave to amend. Currently not represented.


Asked on 6/06/08, 8:58 pm

2 Answers from Attorneys
Steven Murray Steven W. Murray, APC

Re: Borrower received faxed confirmation of cancellation

I don't think so. Whether or not the title insurer originally had a duty to you, from what you said it voluntarily undertook one. Its representations (oral and written) were false and just might be actionable. A person who has no duty but undertakes one has an obligation to perform it in a reasonable manner. You might consider appealing, but this means you must obtain counsel. If you are going to do something, you are under strict time limits so go to see someone right away.

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Answered on 6/12/08, 7:06 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Borrower received faxed confirmation of cancellation

The case is over, and you lost. Next time use an attorney,

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Answered on 6/09/08, 10:29 pm


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