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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. I just wanted to point out that Congressman Jim Sensenbrenner, Senator Feinstein, former Senate majority leader Bill Frist, and former attorney general John Ashcroft are responsible for this rubbish. We need to keep a eye on these corrupt, arrogant, and incompetent fools.

  2. Well I guess our politicians have decided to give these idiot federal prosecutors unlimited power. Now if I guy bounces a fifty-dollar check, the U.S. attorney can intentionally wait for twenty-five years or so and have the check swabbed for DNA and file charges. These power hungry federal prosecutors now have unlimited power to mess with people. we can thank Wisconsin's Jim Sensenbrenner and Diane Feinstein, John Achcroft and Bill Frist for this one. Way to go, idiots.

  3. I wonder if the USSR had electronic voting machines that changed the ballot after it was cast? Oh well, at least we have a free media serving as vicious watchdog and exposing all of the rot in the system! (Insert rimshot)

  4. Jose, you are assuming those in power do not wish to be totalitarian. My experience has convinced me otherwise. Constitutionalists are nearly as rare as hens teeth among the powerbrokers "managing" us for The Glorious State. Oh, and your point is dead on, el correcta mundo. Keep the Founders’ (1791 & 1851) vision alive, my friend, even if most all others, and especially the ruling junta, chase only power and money (i.e. mammon)

  5. Hypocrisy in high places, absolute immunity handed out like Halloween treats (it is the stuff of which tyranny is made) and the belief that government agents are above the constitutions and cannot be held responsible for mere citizen is killing, perhaps has killed, The Republic. And yet those same power drunk statists just reel on down the hallway toward bureaucratic fascism.

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