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

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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.
 

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  1. It appears the police and prosecutors are allowed to change the rules halfway through the game to suit themselves. I am surprised that the congress has not yet eliminated the right to a trial in cases involving any type of forensic evidence. That would suit their foolish law and order police state views. I say we eliminate the statute of limitations for crimes committed by members of congress and other government employees. Of course they would never do that. They are all corrupt cowards!!!

  2. Poor Judge Brown probably thought that by slavishly serving the godz of the age her violations of 18th century concepts like due process and the rule of law would be overlooked. Mayhaps she was merely a Judge ahead of her time?

  3. in a lawyer discipline case Judge Brown, now removed, was presiding over a hearing about a lawyer accused of the supposedly heinous ethical violation of saying the words "Illegal immigrant." (IN re Barker) http://www.in.gov/judiciary/files/order-discipline-2013-55S00-1008-DI-429.pdf .... I wonder if when we compare the egregious violations of due process by Judge Brown, to her chiding of another lawyer for politically incorrectness, if there are any conclusions to be drawn about what kind of person, what kind of judge, what kind of apparatchik, is busy implementing the agenda of political correctness and making off-limits legit advocacy about an adverse party in a suit whose illegal alien status is relevant? I am just asking the question, the reader can make own conclsuion. Oh wait-- did I use the wrong adjective-- let me rephrase that, um undocumented alien?

  4. of course the bigger questions of whether or not the people want to pay for ANY bussing is off limits, due to the Supreme Court protecting the people from DEMOCRACY. Several decades hence from desegregation and bussing plans and we STILL need to be taking all this taxpayer money to combat mostly-imagined "discrimination" in the most obviously failed social program of the postwar period.

  5. You can put your photos anywhere you like... When someone steals it they know it doesn't belong to them. And, a man getting a divorce is automatically not a nice guy...? That's ridiculous. Since when is need of money a conflict of interest? That would mean that no one should have a job unless they are already financially solvent without a job... A photographer is also under no obligation to use a watermark (again, people know when a photo doesn't belong to them) or provide contact information. Hey, he didn't make it easy for me to pay him so I'll just take it! Well heck, might as well walk out of the grocery store with a cart full of food because the lines are too long and you don't find that convenient. "Only in Indiana." Oh, now you're passing judgement on an entire state... What state do you live in? I need to characterize everyone in your state as ignorant and opinionated. And the final bit of ignorance; assuming a photo anyone would want is lucky and then how much does your camera have to cost to make it a good photo, in your obviously relevant opinion?

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