Court Opinion

ID: 9773652
Source: CourtListenerOpinion
Date Created: 2023-08-29 17:52:45.691345+00
Date Added: 2024-06-11T07:31:55.839291
License: Public Domain

John I. Purtle, Justice, dissenting. The insuring clause in this policy states that the insurer is to provide a defense to an action against the insured “to the extent that such litigation is founded upon an alleged defect, lien, encumbrance, or other matter insured by this policy.” Obviously, the claim in this case is a defect, lien or encumbrance. I do not find any policy exclusion which excludes a defense for the claim presented in this matter. Obviously, the claim is not well founded because it failed upon trial. Needless to say, the insurance company would not have been responsible for anything other than the defense of the case. The exclusion was for actions suffered, assumed or agreed to by the insured. Certainly, she did not suffer, assume or agree to a matter which constituted a valid claim against the title. To so construe this exclusion might go so far as to deny coverage for any claim against a title when the person voluntarily accepted a deed to the property. It is my opinion that the exclusions should be for deliberate actions on the part of the insured which amount to a fraud against the title insurance company. The insured in this case was at all times acting in good faith and without deceit or fraud. This should be the standard by which such cases are judged. Therefore, I would reverse.