Real Estate, Financial Services and Title Insurance Update: Week Ending November 26, 2021 | Carlton Fields

Real Estate Update

No cases of interest to report.

Financial Services Update

  • TILA & RESPA / Business objective: Plaintiff’s loan was a business loan based on the court’s examination of the Ninth Circuit’s five-factor test to determine whether a loan was obtained primarily for business or personal purposes – Gilliam v. Levine, #2: 18-cv-02580 (CD Cal Nov 12, 2021) (grant of summary judgment in favor of loan investor)
  • FDCPA / Settlement Offer: An offer to settle a debt does not violate Section 1692g of the FDCPA where the debtor received a letter with a 30-day settlement offer, notice of section 1692g regarding validation of the debt, and wording advising him that the settlement offer did not affect his right to dispute the debt or the notice – Graves v. Omnipoint Mgmt. Soils. LLC, No. 7:20-cv-04579 (SDNY Nov. 17, 2021)

Title Insurance Update

  • CLTA Form 100 Coverage/Approval: The endorsement of the title policy insuring against losses incurred as a result of homeowners association covenants, conditions and restrictions (CC&R) did not bring the insured’s claim within the scope of coverage when the loss of priority claimed by the insured was not the result of a CC&R provision but was the direct result of a Nevada law, which creates a “super priority” for homeowners association liens – Pennymac Corp . vs. Westcor Land Title Ins. Co., No. A-18-781257-C (Nev. Dist. Ct. Oct. 22, 2021) (upholding summary judgment in favor of title insurer)
  • bad faith: Insured’s Bad Faith Claim Against Title Insurer Failed Because Title Insurer Promptly and Properly Denied Coverage of Insured’s Claim – Pennymac Corp. vs. Westcor Land Title Ins. Co., No. A-18-781257-C (Nev. Dist. Ct. Oct. 22, 2021) (upholding summary judgment in favor of title insurer)
  • Coverage / Post-policy claims: The title insurer had no obligation to provide coverage for the insured’s post-policy claim because the title policy specifically excluded coverage for such claims – Pennymac Corp. vs. Westcor Land Title Ins. Co., No. A-18-781257-C (Nev. Dist. Ct. Oct. 22, 2021) (upholding summary judgment in favor of title insurer)

  • Timely Notice of Claim: The insured’s failure to provide timely notice of adverse litigation caused serious harm to the title insurance company, thereby terminating the title insurer’s obligations under the title policy – Pennymac Corp. vs. Westcor Land Title Ins. Co., No. A-18-781257-C (Nev. Dist. Ct. Oct. 22, 2021) (upholding summary judgment in favor of title insurer)
  • Limitation period: Insured’s claim was barred by limitation period when insured failed to bring claim within two years of discovery of facts material to claim – Rehabbers Fin., Inc. v. Chicago Title Ins. Co., No. F081045 (Cal. Ct. App. Nov. 19, 2021) (affirming summary judgment in favor of title insurer)
  • Prescription / Toll: The limitation period for the insured’s claim was not extended to a later date due to the alleged belated rejection of the insured’s claim by the insurer when the insured had already admitted that the insurer had previously denied his claim – Rehabbers Fin., Inc. v. Chicago Title Ins. Co., No. F081045 (Cal. Ct. App. Nov. 19, 2021) (affirming summary judgment in favor of title insurer)

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