(The Measure of a Property Owner's Loss from a Title Defect is the Diminution in the Property's Value Caused by the Title Defect on the Date the Insured Discovers the Defect, Measured According to the Property's Highest and Best Use, Absent Language to the Contrary)
(October 2024) - In Tait v. Commonwealth Land Title Insurance Company, 103 Cal. App. 5th 271 (June 28, 2024), the California First District Court of Appeal reversed the trial court's order granting summary judgment in favor of Commonwealth Land Title Insurance Company ("Commonwealth"). In this case, plaintiffs Martin Tait, Jane Tait, and Bry-Mart, LLC (collectively, the "Taits") purchased a residential property for $1.25 million and Commonwealth issued a title insurance policy for the property. The policy insured the Taits against "actual loss" arising from certain defined covered risks, including someone else having an easement on the property. The policy limited Commonwealth's liability for an unknown easement to the lesser of the Taits' "actual loss" or the policy limit of $1.25 million. The policy did not define "actual loss."
After purchasing the property, the Taits proceeded with their plans to subdivide the property into two lots. However, the Taits learned about a maintenance easement on the property that they believed impacted the marketability and value of the property and interfered with its...
