Our Title Insurance litigation group just obtained a major victory in the VA Supreme Court. The basic question (certified to the VA Supreme Court by the 4th Circuit Court of Appeals) was how and under what circumstances title insurers in VA have standing to make a successful claim under a CRESPA Bond (By the way: at the time of the diversion of loan proceeds, these bonds were $100K, but they are now $250K) posted by all licensed title agents with the VA State Corporation Commission.
We have waged this battle for years without obtaining consistent decisions from the various county Circuit Courts. This case accidently provided us with the opportunity to get the views of the federal judges and their views were consistently supportive of our theory of how we could get such access. (It was the bond issuer which removed our Fairfax action to the ED of VA). With facts about as favorable as we could ever marshal, the VA Supreme Court agreed that under the circumstance presented by our facts, First American Title Insurance Company could, in fact, recover under the title agent’s CRESPA bond. While the case now returns to the 4th Circuit with the certified question answered, we are very optimistic we will soon get a final order and judgment.
As you may imagine , this is a very important decision for the title industry and we were benefitted by an amicus brief filed by the VA Land Title Association.
For a copy of the decision, click here.
Please feel free to circulate this news alert to others in the industry, both within and outside your office.
Real Property and Asset Management Group
Jackson & Campbell P.C.
email: David H. Cox at firstname.lastname@example.org
voice: (202) 457-1634