Title and Escrow Companies
San Jose Title Insurance Litigation Attorneys
A little-known aspect of a real estate transaction is the role of title and escrow companies. Title insurance is required for most transactions to ensure that the property owner actually owns the property and that there are no easements, loans or liens against it. Escrow companies handle funds for a real estate transaction and are considered neutral parties responsible for helping make sure the deal gets done. Complications may arise involving these companies which may require litigation. The Silicon Valley law firm of Rossi, Hamerslough, Reischl & Chuck ("RHRC") represents clients in suits against these companies.
Escrow companies may be sued for the following acts:
- Fraud
- Overcharging buyers
- Misuse of escrow funds
- Charging improper fees
- Closing escrow when funds were not available
- Misrepresentation of information
- Bad faith estimates
If a title company has failed to disclose material items or conditions (such as an easement or lien on the property) on its title insurance policy, it may be liable. The firm also advises clients on all aspects of title review and resolution of title problems.
Examples of Recent Title and Escrow Representation
In Re: Lee (Old Republic Title) v. Guzik, et al (Santa Clara County Superior Court Case No.: 104CV031066) Defended an action brought by their neighbor to establish an easement for walking his dog through their backyard. After the clients/buyers spent 2 years and millions of dollars tearing down the old house and rebuilding a new one with expensive landscaping, the neighbor claimed that he had previously walked his dog through their backyard, and therefore had acquired a prescriptive easement. After 3 days of testimony during a jury trial, a favorable settlement was reached.
In re: Critchfield v. Old Republic, et al. (Santa Clara County Superior Court Case No: C05-00909, Transferred to Binding Arbitration) Successfully defended title insurance company for breach of a policy of title insurance and for bad faith. Plaintiff claimed that title company had made a mistake which went to the title ownership of the property. Convinced arbitrator that plaintiff had perpetrated a fraud on Old Republic by failing to disclose its knowledge that an estate still had an interest in the conveyed property and that title company had diligently investigated the alleged mistake, attempted to help cure any defect, and otherwise properly handled the claim.
In re: Fogarty v. Midpeninsula Regional Open Space District, et al. (San Mateo Superior Court Case No. CIV441934) Represented title insurance policy holder in an action to assert easement rights in a roadway crossing property owned by Open Space District who cross-complained asserting rights to the same roadway. The matter was successfully settled to the satisfaction of all parties.
In Re: Wells v. Prion (mediation). Settled a dispute for a businesswoman who put the name of her significant other on title to her home, which she had owned for many years, without any written agreement or any financial contribution from him. When the two parted ways, he sued her for a half-interest in the property. At mediation, we negotiated a small buyout of his alleged interest and removed his name from title.
Rossi, Hamerslough, Reischl & Chuck
1960 The Alameda, Suite 200 · San Jose, CA 95126 · (408) 261-4252
