In our previous newsletter, we reported a D.C. Court of Appeals decision upholding a lower court's ruling that the insured under a title insurance policy may not recover costs of defense when a lawsuit against the insured, on its face, failed to allege matters under the insured's policy, even though an inquiry by the title underwriter may have revealed coverable issues. The insured had argued that the duty to defend, being broader than the duty to indemnify, was triggered by imputed knowledge of the public records. That case, John Stevens v. United General Title Ins (D.C. App. No. 00-CV-1235) now appears to be headed to en banc review.

The District of Columbia Department of Consumer and Regulatory Affairs has extended the deadline for business owners to obtain the "Master Business License" to December 31. Home-based businesses based in DC have until Feb 28, 2003. Any business that collects more than $2000/year (including self- employed people) are required to obtain this license. Our firm can assist you.

Escrow Account Reconciliation Reminder: The Virginia Supreme Court validates that a bank MAY shorten the time that an escrow account holder may have to advise the bank of a counterfeit or stolen check. In a recent case, that time period was two months. Since the title company did not advise the bank of the problem within that period, the title company could not claim credit for a forged check. Lesson: reconcile monthly.

Title Companies and Attorneys specializing in representing commercial tenants: Idea for Generating Business. Advise on the importance of Leasehold Title Insurance. There is a terrific article you can share with them that appears in the May/June Issue of "Probate & Property" published by the American Bar Association. Also available at 19 ACREL News No. 4, Dec. 2001 (American College of Real Estate Lawyers). Click Here for copy of article

Click Here for Good Conversion Utility from 1981 DC Code to 2001 DC Code

Please feel free to circulate this newsletter to others in the industry, both within and outside your office.

Sincerely,

Real Property and Asset Management Group
Jackson & Campbell P.C.