COA reverses judgment in title insurance issue

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The Indiana Court of Appeals has declined to extend to an insurance agent the duty of an insurer as declared by the state’s highest court. In doing so, the judges reversed the denial of a title insurance company’s motion for summary judgment.

In Meridian Title Corporation v. Gainer Group, LLC, No. 46A03-1006-PL-312, Gainer Group LLC sued Meridian Title Corporation, alleging Meridian failed to properly handle Gainer Group’s claim in a lawsuit involving a piece of property. The Ruth N. Cathey Trust sold some property to the Gainer Group and the trust engaged Meridian to procure title insurance for the property. After the sale, the trust claimed it mistakenly sold more land to Gainer Group than it had intended.

Meridian tried to facilitate a resolution, but the trust ended up suing Gainer Group to recover the piece of property it didn’t want to sell. That’s when Gainer Group filed its lawsuit against Meridian, seeking to recover litigation expenses and attorney fees it incurred prior to its insurer accepting the claim.

There’s no evidence of an intimate, long-term relationship between Meridian and Gainer Group that would require Meridian to perform a duty that extends beyond its general duty to exercise reasonable care, skill, and good-faith diligence in obtaining the insurance policy, wrote Senior Judge John Sharpnack. But the facts of the case do constitute a special circumstance that triggers an extended duty to advise on the part of Meridian.

Meridian tried to facilitate a settlement between the trust and Gainer Group at its offices. At this meeting, Meridian’s president and CEO pointed to a provision in the title policy and said that Gainer Group didn’t have a claim because it had closed without a survey. Meridian also had a financial interest in no claim being made under Gainer Group’s policy of title insurance, the judge continued.

Meridian had this extended duty to advise Gainer Group regarding coverage, and it fulfilled that duty, the Court of Appeals concluded.

Gainer Group cited Erie Ins. Co. v. Hickman by Smith, 622 N.E.2d 515 (Ind. 1993), to support its argument that Meridian owed it a duty of good faith and fair dealing beyond its general duty of reasonable care, skill, and good-faith diligence. But that case dealt with the duty of an insurer to an insured. In the instant case, Meridian is an agent.

“Our Supreme Court has yet to extend this duty to an agent; rather, an insurance agent’s duty does not extend beyond the general duty to exercise reasonable care, skill and good faith diligence in obtaining a policy of insurance unless the evidence, through certain factors as set forth above, establishes a special relationship,” wrote Senior Judge Sharpnack. “Therefore, we decline Gainer Group’s invitation to extend the application of the duty of an insurer as set out by the Supreme Court in Erie.”


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  1. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

  2. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.

  3. (A)ll (C)riminals (L)ove (U)s is up to their old, "If it's honorable and pro-American, we're against it," nonsense. I'm not a big Pence fan but at least he's showing his patriotism which is something the left won't do.

  4. While if true this auto dealer should be held liable, where was the BMV in all of this? How is it that the dealer was able to get "clean" titles to these vehicles in order to sell them to unsuspecting consumers?

  5. He has refused his Assent to Laws, the most wholesome and necessary for the public good. He has forbidden his Governors to pass Laws of immediate and pressing importance, He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance. He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation: For imposing Taxes on us without our Consent: He is at this time transporting large Armies of foreign Mercenaries to compleat the works of death, desolation and tyranny, already begun with circumstances of Cruelty & perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a civilized nation.. He has excited domestic insurrections amongst us, and has endeavoured to bring on the inhabitants of our frontiers, the merciless [ ] Savages, whose known rule of warfare, is an undistinguished destruction of all ages, sexes and conditions. GOD BLESS THE GOVERNORS RESISTING! Count on the gutless judiciary to tie our children down and facilitate the swords being drawn across their throats. Wake Up America ...