ILNews

Man lacks standing to pursue cause of actions in failed home purchase

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Court of Appeals affirmed that the underwriter of title insurance stands in the shoes of its insureds, so a man suing several entities over a failed home purchase lacks standing to pursue his causes of action.

Beneficial Mortgage Co. of Indiana purchased a property it had funded in a sheriff’s sale. Real estate taxes were owed on the property, and it was purchased at a tax sale several days after Beneficial received title. The Wolvertons purchased the property at issue in the tax sale in September 2000 and sent notice to Beneficial.

Guadalupe Puente obtained a mortgage from PNC to purchase the property from Beneficial in April 2001. When Puente purchased the property, Meridian Title Corp. issued a standard American Land Title Association policy of title insurance to him and a lender’s policy of title insurance to PNC. Fidelity was the underwriter for both policies.

The Wolvertons filed a quiet-title action and eventually were victorious in their suit. Puente, in 2008, vacated the property. The trial court awarded the Wolvertons $5,700 in damages, which took into account their lost rent during the 62 months at issue plus the $16,000 in increased property value during Puente’s occupancy as a result of his efforts.

At issue in Guadalupe Puente v. Beneficial Mortgage Co. of Indiana, PNC Bank, Fidelity National Title Insurance Co., and Meridian Title Corp., 45A03-1304-PL-159, is whether Fidelity has subrogration rights to pursue Puente’s claims against Beneficial and others.

“Puente argues that subrogation is an entirely equitable remedy and that the equities in this case counsel against subrogation. Fidelity argues, and the trial court held, that equitable subrogation is not applicable here. Rather, the plain terms of the insurance policy’s subrogation clause eliminated any need to consider the equities because Fidelity is entitled to subrogation as a matter of contractual right. The question therefore is whether the right of subrogation can exist by contract, without the need to resort to a balancing of the equities,” Judge Ezra Friedlander wrote.  
Several jurisdictions have specifically addressed the question presented here: whether conventional subrogation is subject to equitable considerations, and the decisions have gone both ways, the court noted.

When it comes to subrogation provisions in insurance policies, the court adopted the view that equity is not a consideration in cases involving conventional – or contractual – subrogation.

“Ultimately, it places the onus on parties to an insurance contract to negotiate terms as they see fit, and then to abide by the terms of the resulting contract in the event insurance coverage is triggered,” he wrote, noting the language in the policy is broad enough to confer upon Fidelity a contractual right to subrogation.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. First comment on this thread is a fitting final comment on this thread, as that the MCBA never answered Duncan's fine question, and now even Eric Holder agrees that the MCBA was in material error as to the facts: "I don't get it" from Duncan December 1, 2014 5:10 PM "The Grand Jury met for 25 days and heard 70 hours of testimony according to this article and they made a decision that no crime occurred. On what basis does the MCBA conclude that their decision was "unjust"? What special knowledge or evidence does the MCBA have that the Grand Jury hearing this matter was unaware of? The system that we as lawyers are sworn to uphold made a decision that there was insufficient proof that officer committed a crime. How can any of us say we know better what was right than the jury that actually heard all of the the evidence in this case."

  2. wow is this a bunch of bs! i know the facts!

  3. MCBA .... time for a new release about your entire membership (or is it just the alter ego) being "saddened and disappointed" in the failure to lynch a police officer protecting himself in the line of duty. But this time against Eric Holder and the Federal Bureau of Investigation: "WASHINGTON — Justice Department lawyers will recommend that no civil rights charges be brought against the police officer who fatally shot an unarmed teenager in Ferguson, Mo., after an F.B.I. investigation found no evidence to support charges, law enforcement officials said Wednesday." http://www.nytimes.com/2015/01/22/us/justice-department-ferguson-civil-rights-darren-wilson.html?ref=us&_r=0

  4. Dr wail asfour lives 3 hours from the hospital,where if he gets an emergency at least he needs three hours,while even if he is on call he should be in a location where it gives him max 10 minutes to be beside the patient,they get paid double on their on call days ,where look how they handle it,so if the death of the patient occurs on weekend and these doctors still repeat same pattern such issue should be raised,they should be closer to the patient.on other hand if all the death occured on the absence of the Dr and the nurses handle it,the nurses should get trained how to function appearntly they not that good,if the Dr lives 3 hours far from the hospital on his call days he should sleep in the hospital

  5. It's a capital offense...one for you Latin scholars..

ADVERTISEMENT