In 1987, Granada filed for bankruptcy. Foothill Thrift cross-claimed against Bodenvest for foreclosure. Ultimately, a decree of foreclosure was entered in favor of Foothill Thrift. The Policy had been issued to Foothill Thrift by Security's predecessor, Safeco Title Insurance, through Meridian Title Company. At trial, the court concluded that Pacific's losses were covered by the Policy.
Security now challenges that ruling.
Because we reverse the trial court's holding on this question, we need not address the other issues raised on appeal. We review the trial court's interpretation of the insurance contract for correctness. In Utah, title insurance insures, guarantees, or indemnifies the owners of real or personal property or the holders of liens or encumbrances on that property, or others interested in the property against loss or damage suffered by reason of liens or encumbrances upon, defects in, or the unmarketability of the title to the property, or invalidity or unenforceability of any liens or encumbrances on the property. Utah Code Ann. This general insuring clause is subject to several exceptions that we do not address here.