Settlement or Verdict Amount:
$1,277,104 including $750,000 punitive damages.

Editor's Note: Union Land Title settled for $15,000 before trial.

Case Name:
Santa Fe Valley Partners v. Fidelity National Title Insurance,
Union Land Title

Case Number:
Case No. 63 83 67

Plaintiffs:
Santa Fe Valley Partners - Harris I. Steinberg and Michael
Prairie, San Diego

Defendants:
Fidelity National Title Insurance - John Hosak, Los Angeles;
and Eugene J. Chiarelli, San Francisco

Facts and Background:
Plaintiff purchased 100 acres of raw land after inspection. After
purchase Plaintiff learned that eight high tension towers cut
across the property. This rendered eight acres unusable because
of the overhead easement and cut back view lots. However, the
towers were not declared in the title restrictions and Plaintiff
believed they were not part of the property. Plaintiff submitted
a claim for $350,000 which Defendant denied. Defendant Fidelity
National Title Insurance cross-complained for rescission.

Defendant Union Land Title settled before trial.

Plaintiff’s Contentions:
Defendants denied their claim in bad faith. Defendants attempted
to delay and lowball the Plaintiff on the claim and
misrepresented law on title losses. Defendant’s six claims
attorneys failed to investigate the loss and had no clear
understanding of the policy. President of the company admitted he
never read the policy and did not know what it covered.

Defendant’s Contentions:
Plaintiff knew the towers were on the 100 acres. The towers were
obvious and seller’s real estate agent disclosed them. No loss
to Plaintiff in that Plaintiff saw the towers and knew the land
was too steep to build on. Plaintiff had a study showing power
lines.

Damages:
$350,000 in loss of useable property, attorneys’ fees and
interest.