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. I have an open CHINS case I failed a urine screen I have since got clean completed IOP classes now in after care passed home inspection my x sister in law has my children I still don't even have unsupervised when I have been clean for over 4 months my x sister wants to keep the lids for good n has my case working with her I just discovered n have proof that at one of my hearing dcs case worker stated in court to the judge that a screen was dirty which caused me not to have unsupervised this was at the beginning two weeks after my initial screen I thought the weed could have still been in my system was upset because they were suppose to check levels n see if it was going down since this was only a few weeks after initial instead they said dirty I recently requested all of my screens from redwood because I take prescriptions that will show up n I was having my doctor look at levels to verify that matched what I was prescripted because dcs case worker accused me of abuseing when I got my screens I found out that screen I took that dcs case worker stated in court to judge that caused me to not get granted unsupervised was actually negative what can I do about this this is a serious issue saying a parent failed a screen in court to judge when they didn't please advise

  2. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

  3. Paul Hartman of Burbank, Oh who is helping Sister Fuller with this Con Artist Kevin Bart McCarthy scares Sister Joseph Therese, Patricia Ann Fuller very much that McCarthy will try and hurt Patricia Ann Fuller and Paul Hartman of Burbank, Oh or any member of his family. Sister is very, very scared, (YES, I AM) This McCarthy guy is a real, real CON MAN and crook. I try to totall flatter Kevin Bart McCARTHY to keep him from hurting my best friends in this world which are Carolyn Rose and Paul Hartman. I Live in total fear of this man Kevin Bart McCarthy and try to praise him as a good man to keep us ALL from his bad deeds. This man could easy have some one cause us a very bad disability. You have to PRAISAE in order TO PROTECT yourself. He lies and makes up stories about people and then tries to steal if THEY OWN THRU THE COURTS A SPECIAL DEVOTION TO PROTECT, EX> Our Lady of America DEVOTION. EVERYONE who reads this, PLEASE BE CAREFUL of Kevin Bart McCarthy of Indianapolis, IN My Phone No. IS 419-435-3838.

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

  5. 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.