Title Insurance – Duty to Defend

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7^th Circuit Court of Appeals

Case Name: Kathryn Marchetti et al v. Chicago Title Insurance Company et al

Case No.: 15-1240

Officials: WOOD, Chief Judge, and EASTERBROOK and HAMILTON, Circuit Judges

Focus: Title Insurance – Duty to Defend

Title insurance company has no duty to defend appellant in real estate transaction gone awry.

“Indeed, the Marchettis appear to have turned a profit on the transaction, because they did not perform all of the planned work before they gave up their claim of ownership. The Marchettis tell us that $100,000 in renovation work was done. Jonathon Marchetti was the contractor and may have profited in that capacity, and at all events $100,000 is less than the construction-loan amount of $155,000. In the district court the Marchettis contended that they lost the profits they had anticipated from renting the improved property, but they have now acknowledged that the policy does not cover consequential damages. They suffered no capital loss, and that is all Chicago Title promised to make good. Since Chicago Title relieved them of the burden of the loan and mortgage, leaving them loss-free, it acquired the Marchettis’ claim against the fraud’s perpetrator and was entitled to collect from the restitution award”

Affirmed

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.