Monday, December 19, 2016
Alereza v. Chicago Title Company
Chicago Title admitted its employee negligently listed the wrong name of the insured (the purchaser of a gas station business) when securing a new certificate of insurance for the business. This was the first of a series of missteps by several persons that eventually led to plaintiff giving a personal guarantee to save the gas station business, and allegedly resulted in damages to plaintiff. The court held in favor of Chicago Title on the basis that it did not owe a duty of care to plaintiff because he was not a party to the escrow, not mentioned in the escrow instructions as a third party beneficiary, and did not sustain his losses as a direct result of the escrow officer's negligence.
Cal.App. 3rd Dist. (C075547) 11/16/16 (Pub. order 12/9/16)