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.