Commercial Title Searches Have Many Caveats
In preparing a zoning report for a proposed ethanol plant, Chicago Title apparently missed the names of several nearby homeowners, who were therefore not served with legal notice of the planned construction. As the construction became more imminent, neighbors found out and quashed the transaction, causing Chicago Title a $48.4 million loss. See more details at Ethanol Producers magazine.
CLAYTON, Mo. (CN) – A St. Louis County jury awarded $48.4 million to an ethanol company against a title company that failed to notify property owners near a site where the ethanol company wanted to build a plant near Wichita. The award, after a 2-week trial, is the largest ever in St. Louis County Court.
Abengoa Bioenergy wanted to build a plant in Colwich, Kan. Chicago Title was supposed to notify nearby property owners in order to obtain zoning to build it, but seven property owners were left off the notification list.
After zoning was granted, the property owners found out and sued in 2008. Abengoa was forced to build a more expensive, less profitable plant in Granite City, which was finished 15 months after the first plant was supposed to be completed.
The award includes the higher cost of building the plant in Granite City, the cost of the 15-month delay and the lower revenue from the plant.
John L. Davidson, Esq.
13975 Manchester, Suite 19
Saint Louis, Missouri 63011
Fred Kirby, of Chicago Title, Dies at 91
Fred Kirby, longtime chairman and chief executive of Alleghany Corporation sold its biggest asset, Investors Diversified Services (IDS) to the American Express Company for $800 million in 1983. In 1986 he moved the proceeds into Chicago Title and Trust Company and the Security Union Title Insurance Company to make them the biggest players at the time in the title insurance industry. More detail on Mr Kirby’s life at the New York Times
Title Work sent to India
As many of us know, Land Records in the US are now routinely sent to India and the Philippines to be input into our computerized public land records.This is a video of some vintage (14 months old) showing the progress of one India firm with over 600 employees doing over 100 processes in all 50 states it says. An interesting overview for all in the title industry, showing the growth in outsourcing the title industry overseas and the many companies involved. See video at UTube here.
Abstractor Sued Over Email Message
A Client sues an abstractor after receiving an apparently erroneous Email over a question of priority as to a particular mortgage lien. Client alleges that, in reliance of abstractor’s one-word “yes” e-mail response to his inquiry about the loan, he submitted a bid at the foreclosure sale on March 11, 2008 in the sum of $1,000,000.01. He further alleges that he was only able to sell the property for $1,200,000 and, after negotiating a reduction in and then paying the balance remaining on the senior Citimortgage lien, he sustained a loss in the sum of $1,000,000. So he sues the abstractor.
No title insurance policy was ordered, no abstract of title was ordered, nor was there any money that changed hands. Good case of Caveat Emptor. It would seem that the public thinks they can sue for anything, without taking any responsibility for their actions. Client did not take the time and effort required to guarantee good information.
A good case out of California, where the court once again got it right, in the opinion of this author. After all, shouldn’t one spending over a million dollars have some sense of business acumen and basic knowledge when it comes to dealing with real estate? Read the Soifer v. Chicago Title case here.
Chicago Title Files Suit Against Attorney Agent
Chicago Title has a civil case pending against its agent, Robert Steuk, a disbarred New Hampshire Attorney who owned Warranty Title Company, Inc. Chicago Title reportedly received at least 40 claims related to real-estate closings facilitated by Steuk’s escrow company with fraudulent transfers estimated at $1.3 million. However, as part of Monday’s plea agreement, federal prosecutors agreed to stipulate that the losses were more than $400,000 and less than $1 million. Steuk illegally wired sums of money ranging between $10,000 and $130,000 to accounts held by himself or family members. Steuk faces up to 20 years in prison for his deeds. Read More at Mail Tribune or SeaCoast.
Home Closing 101: An Educational Initiative of the American Land Title Association
