1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

IN THE CIRCUIT COURT OF THE STATE OF OREGON

FOR THE COUNTY OF JOSEPHINE

DONALD L. OLSON as TRUSTEE OF

THE OLSON LIVING TRUST,

Plaintiff, 

vs. 

CHICAGO TITLE INSURANCE

COMPANY, successor to TICOR TITLE

INSURANCE COMPANY 

Defendant.

___________________________________

)

)

)

)

)

)

)

)

)

)

)

)

)

No. 

COMPLAINT

(Breach of Contract)

PRAYER AMOUNT: $69,604.39

CLAIM NOT SUBJECT TO

MANDATORY ARBITRATION 

Plaintiff alleges as follows:

1.

Plaintiff is the owner of real properties located at 1711 Softwood Way, Grants

Pass, Oregon 97526, 1115 Catherine Way, Grants Pass, Oregon 97526, 1726 Kids

Way, Grants Pass, Oregon 97526, and 1736 Kids Way, Grants Pass, Oregon 97526.

2.

At all material times, Ticor Title Insurance Company was a California

corporation which issues real property title insurance policies. At the time when the

policies were issued, Defendant was a licensed insurance producer, and transacted

insurance in the state of Oregon. At all material times, Defendant, Chicago Title

Insurance Company was the successor in interest to Ticor Title Insurance Company.

3.

On or about May 1, 2008, Defendant issued lender’s Policy No. 26-62822, in

connection with the real property at 1711 Softwood Way, and identifying Plaintiff as

the Insured. A copy of the policy is attached hereto as “Exhibit 1" and is thereby

SORENSON, RANSOM & FERGUSON, LLP 

 ATTORNEYS AT LAW 

 133 NW ‘D’ STREET 

 GRANTS PASS, OR 97526 

Page 1- COMPLAINT (541) 476-3883 FAX (541) 474-4495

8/6/2015 3:36:29 PM

15CV20794

Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 1 of 53
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

incorporated. At the time the policy was issued, Plaintiff was the beneficiary of a first

Trust Deed on the property, which is recorded in the Official Records of Josephine

County as Instrument No. 2008-017530. Subsequently, the grantor of the Trust Deed

defaulted in its obligation to Plaintiff, and on or about May 25, 2011 the real property

was conveyed to Plaintiff via a deed in lieu of foreclosure, which was recorded in the

Official Records of Josephine County as Instrument No. 2011-006124.

4.

In early June of 2011, Plaintiff discovered that prior to the issuance of the

insurance policy, 1711 Softwood Way was encumbered by System Development

Charges, (hereinafter: “SDC’s”) which were not disclosed in Schedule B of the Policy

as being excepted from coverage. At the same time, Plaintiff discovered that prior to

the issuance of the insurance policy, 1711 Softwood Way was encumbered by

Advanced Financed District Charges, (hereinafter: “AFD’s”), which were not disclosed

on Schedule B of the Policy as an exception to coverage, sufficient to put Plaintiff on

notice of a pre-existing financial obligation.

5.

On or about April 29, 2008, Defendant issued lenders Policy No. 26-62819, in

connection with the real property at 1115 Catherine Way, and identifying Plaintiff as

the Insured. A true copy of the policy is attached hereto as “Exhibit 2" and is thereby

incorporated. At the time the policy was issued, Plaintiff was the beneficiary of a first

Trust Deed on the property, which was recorded in the Official Records of Josephine

County as Instrument No. 2008-007139. Subsequently, the grantor of the Trust Deed

defaulted on its obligation to Plaintiff, and on or about May 25, 2011, the real

property was conveyed to Plaintiff via a deed in lieu of foreclosure, which was

recorded in the Official Records of Josephine County as Instrument No. 2011-006123.

///

///

SORENSON, RANSOM & FERGUSON, LLP

ATTORNEYS AT LAW

133 NW ‘D’ STREET

GRANTS PASS, OR 97526

Page 2- COMPLAINT (541) 476-3883 FAX (541) 474-4495

Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 2 of 53
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

6.

In early June of 2011, Plaintiff became aware that prior to the issuance of the

insurance policy 1115 Catherine was encumbered by SDC’s, which were not disclosed

in Schedule B of the Policy as being excepted from coverage. At the same time,

Plaintiff discovered that prior to the issuance of the insurance policy, 1115 Catherine

Way was encumbered by AFD’s, which were not disclosed on Schedule B of the Policy

as an exception to coverage, sufficient to put Plaintiff on notice of a pre-existing

financial obligation.

7.

On or about August 30, 2007, Defendant issued lenders Policy No. 26-60393,

in connection with the real property at 1726 Kids way, and identifying Plaintiff as the

Insured as to an undivided 50% interest. A true copy of the policy is attached hereto

as “Exhibit 3" and is thereby incorporated. At the time the policy was issued, Plaintiff

was the beneficiary of a first Trust Deed as to an undivided 50% interest. The Trust

Deed was recorded in the Official Records of Josephine County as Instrument No.

2007-017096. Subsequently, the grantor of the Trust Deed defaulted on its obligation

to Plaintiff, and on or about May 25, 2011 the real property was conveyed to Plaintiff

alone via a deed in lieu of foreclosure, which was recorded in the Official Records of

Josephine County as Instrument No. 2011-006125.

8.

In early June of 2011, Plaintiff became aware that prior to the issuance of the

insurance policy 1726 Kids Way was encumbered by SDC’s, which were not disclosed

in Schedule B of the Policy as being excepted from coverage. At the same time,

Plaintiff discovered that prior to the issuance of the insurance policy, 1726 Kids Way

was encumbered by AFD’s, which were not disclosed on Schedule B of the Policy as an

exception to coverage, sufficient to put Plaintiff on notice of a pre-existing financial

obligation.

SORENSON, RANSOM & FERGUSON, LLP

ATTORNEYS AT LAW

133 NW ‘D’ STREET

GRANTS PASS, OR 97526

Page 3- COMPLAINT (541) 476-3883 FAX (541) 474-4495

Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 3 of 53
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

9.

On or about November 19, 2008, Defendant issued lenders Policy No. 26-

64437, in connection with the real property at 1736 Kids Way, and identifying

Plaintiff as the Insured. A true copy of the policy is attached hereto as “Exhibit 4" and

is thereby incorporated. At the time the policy was issued, Plaintiff was the

beneficiary of a first Trust Deed, recorded in the Official Records of Josephine County

as Instrument No. 2008-017530. Subsequently, the grantor of the Trust Deed

defaulted in its’ obligations to Plaintiff, and on or about May 25, 2011 the real

property was conveyed to Plaintiff via a deed in lieu of foreclosure, which was

recorded in the Official Records of Josephine County as Instrument No. 2011-006126.

10.

In early June of 2011, Plaintiff became aware that prior to the issuance of the

insurance policy 1736 Kids Way was encumbered by SDC’s, which were not disclosed

in Schedule B of the Policy as being excepted from coverage. At the same time,

Plaintiff discovered that prior to the issuance of the insurance policy, 1736 Kids Way

was encumbered by AFD’s, which were not disclosed on Schedule B of the Policy as an

exception to coverage, sufficient to put Plaintiff on notice of a pre-existing financial

obligation.

11.

The “Covered Risks” section of each policy is identical, and provides that

subject to the exclusions from coverage contained in Schedule B, as of the date of the

policy, Defendant would insure Plaintiff against any loss or damage sustained or

incurred by reason of:

“Any defect in or lien or encumbrance of the Title. This Covered Risk

includes but is not limited to insurance against loss from [T]he lien of

real estate taxes or assessments imposed on the Title by a governmental

authority due or payable, but unpaid.” Covered Risks 2(b).

///

SORENSON, RANSOM & FERGUSON, LLP

ATTORNEYS AT LAW

133 NW ‘D’ STREET

GRANTS PASS, OR 97526

Page 4- COMPLAINT (541) 476-3883 FAX (541) 474-4495

Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 4 of 53
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

12.

On or about May 20, 2013, Plaintiff submitted a Proof of Loss to Defendant as

to each and every loss, and has performed all other obligations under the policies. 

Defendant or Defendant’s successor has denied each of Plaintiff’s claims under the

policies.

FIRST CLAIM FOR RELIEF

(Breach of Contract)

13.

Plaintiff re-alleges Paragraphs 1 through 12 above.

14.

Plaintiff entered into an insurance contract with Defendant. Defendant agreed

to insure Plaintiff against any defects caused by any liens or encumbrances on the title

of 1711 Softwood Way, caused by the real estate of real estate taxes or assessments

imposed by a governmental authority due or payable, but unpaid. Despite this

agreement, Defendant refused to pay Plaintiff’s losses related to a covered risk. 

15.

Plaintiff is the beneficiary of the insurance contract and has the right to receive

loss payment in these circumstances.

16.

Plaintiff has performed all of Plaintiff’s obligations under the terms of the

Policy. Plaintiff has presented Proofs of Loss to Defendant, and presented claims

under the Policy with Defendant, which have been denied. Plaintiff has exhausted

Plaintiff’s remedies under the Policy, short of litigation.

17.

Defendant has breached its contract with Plaintiff by failing to pay Plaintiff’s

claims in accordance with the terms of the Policy. Plaintiff has been damaged in the

amount of $15,594.95, or such other amount as may be proven at trial, because of

SORENSON, RANSOM & FERGUSON, LLP

ATTORNEYS AT LAW

133 NW ‘D’ STREET

GRANTS PASS, OR 97526

Page 5- COMPLAINT (541) 476-3883 FAX (541) 474-4495

Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 5 of 53
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

Defendant’s failure to pay for damages which are covered under the Policy.

SECOND CLAIM FOR RELIEF

(Breach of Contract)

18.

Plaintiff re-alleges Paragraphs 1 through 17 above.

19.

Plaintiff entered into an insurance contract with Defendant. Defendant agreed

to insure Plaintiff against any defects caused by liens or encumbrances on the title of

1115 Catherine Way, caused by the real estate of real estate taxes or assessments

imposed by a governmental authority due or payable, but unpaid. Despite this

agreement, Defendant refused to pay Plaintiff’s losses related to a covered risk. 

20.

Plaintiff is the beneficiary of the insurance contract and has the right to receive

loss payment in these circumstances.

21.

Plaintiff has performed all of Plaintiff’s obligations under the terms of the

Policy. Plaintiff has presented Proofs of Loss to Defendant, and presented claims

under the Policy with Defendant, which have been denied. Plaintiff has exhausted

Plaintiff’s remedies under the Policy, short of litigation.

22.

Defendant has breached its contract with Plaintiff by failing to pay Plaintiff’s

claims in accordance with the terms of the Policy. Plaintiff has been damaged in the

amount of $15,604.39, or such other amount as may be proven at trial, because of

Defendant’s failure to pay for damages which are covered under the Policy.

///

///

///

SORENSON, RANSOM & FERGUSON, LLP

ATTORNEYS AT LAW

133 NW ‘D’ STREET

GRANTS PASS, OR 97526 Page 6- COMPLAINT (541) 476-3883 FAX (541) 474-4495

Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 6 of 53
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

THIRD CLAIM FOR RELIEF

(Breach of Contract)

23.

Plaintiff re-alleges Paragraphs 1 through 22 above.

24.

Plaintiff entered into an insurance contract with Defendant. Defendant agreed

to insure Plaintiff against any defects caused by liens or encumbrances on the title of

1726 Softwood Way, caused by the real estate of real estate taxes or assessments

imposed by a governmental authority due or payable, but unpaid. Despite this

agreement, Defendant refused to pay Plaintiff’s losses related to a covered risk. 

25.

Plaintiff is the beneficiary of the insurance contract and has the right to receive

loss payment in these circumstances.

26.

Plaintiff has performed all of Plaintiff’s obligations under the terms of the

Policy. Plaintiff has presented Proofs of Loss to Defendant, and presented claims

under the Policy with Defendant, which have been denied. Plaintiff has exhausted

Plaintiff’s remedies under the Policy, short of litigation.

27.

Defendant has breached its contract with Plaintiff by failing to pay Plaintiff’s

claims in accordance with the terms of the Policy. Plaintiff has been damaged in the

amount of $19,103.03, or such other amount as may be proven at trial, because of

Defendant’s failure to pay for damages which are covered under the Policy.

FOURTH CLAIM FOR RELIEF

(Breach of Contract)

28.

Plaintiff re-alleges Paragraphs 1 through 27 above.

SORENSON, RANSOM & FERGUSON, LLP

ATTORNEYS AT LAW

133 NW ‘D’ STREET

GRANTS PASS, OR 97526

Page 7- COMPLAINT (541) 476-3883 FAX (541) 474-4495

Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 7 of 53
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29.

Plaintiff entered into an insurance contract with Defendant. Defendant agreed

to insure Plaintiff against any defects caused by liens or encumbrances on the title of

1736 Softwood Way, caused by the real estate of real estate taxes or assessments

imposed by a governmental authority due or payable, but unpaid. Despite this

agreement, Defendant refused to pay Plaintiff’s losses related to a covered risk. 

30.

Plaintiff is the beneficiary of the insurance contract and has the right to receive

loss payment in these circumstances.

31.

Plaintiff has performed all of Plaintiff’s obligations under the terms of the

Policy. Plaintiff has presented Proofs of Loss to Defendant, and presented claims

under the Policy with Defendant, which have been denied. Plaintiff has exhausted

Plaintiff’s remedies under the Policy, short of litigation.

32.

Defendant has breached its contract with Plaintiff by failing to pay Plaintiff’s

claims in accordance with the terms of the Policy. Plaintiff has been damaged in the

amount of $19,103.00, or such other amount as may be proven at trial, because of

Defendant’s failure to pay for damages which are covered under the Policy.

CLAIM FOR ATTORNEY FEES

33.

Because settlement was not made within six (6) months of Defendant receiving

proof of the loss, Plaintiff is entitled to recover attorney fees, pursuant to ORS

742.061, as to each of Plaintiff’s claims for relief.

WHEREFORE, Plaintiffs request the following relief:

1. On Plaintiff’s First Claim for Relief, judgment against Defendant in the

amount of $15,594.95, or such other amount as may be proven at trial;

SORENSON, RANSOM & FERGUSON, LLP

ATTORNEYS AT LAW

133 NW ‘D’ STREET

GRANTS PASS, OR 97526

Page 8- COMPLAINT (541) 476-3883 FAX (541) 474-4495

Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 8 of 53
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

2. On Plaintiff’s Second Claim for Relief, judgment against Defendant in

the amount of $15,604.39 or such other amount as may be proven at

trial;

3. On Plaintiff’s Third Claim for Relief, judgment against Defendant in the

amount of $19,103.03 or such other amount as may be proven at trial;

4. On Plaintiff’s Fourth Claim for Relief, judgment against Defendant in the

amount of $19,103.00 or such other amount as may be proven at trial;

5. For attorney fees on each claim for relief, pursuant to ORS 742.061,

costs and disbursements; and

6. For such other relief as may be adjudged to be just and equitable.

Dated this 6 day of August, 2015. th

SORENSON, RANSOM & FERGUSON, LLP

/s/ Carl A. Clyde 

Carl A. Clyde

OSB No. 095782

cclyde@roguevalleylaw.com

Of Attorneys for Plaintiff

SORENSON, RANSOM & FERGUSON, LLP

ATTORNEYS AT LAW

133 NW ‘D’ STREET

GRANTS PASS, OR 97526

Page 9- COMPLAINT (541) 476-3883 FAX (541) 474-4495

Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 9 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 10 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 11 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 12 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 13 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 14 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 15 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 16 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 17 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 18 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 19 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 20 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 21 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 22 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 23 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 24 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 25 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 26 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 27 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 28 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 29 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 30 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 31 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 32 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 33 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 34 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 35 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 36 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 37 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 38 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 39 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 40 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 41 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 42 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 43 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 44 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 45 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 46 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 47 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 48 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 49 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 50 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 51 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 52 of 53
Case 1:15-cv-01692-CL Document 2-2 Filed 09/08/15 Page 53 of 53