Tuesday, March 19, 2019
Citrus El Dorado v. Chicago Title Company
Cal.App. 4th Dist., Div. 2 (E067938) 3/5/19
The court upheld the trial court's order sustaining a demurrer in favor of Chicago Title Company, which acted as trustee in conducting a non-judicial foreclosure of a deed of trust. The court held that Chicago Title did not have a duty to verify that the beneficiary received a valid assignment of the loan or to verify the authority of the person who signed the substitution of trustee. Such an inquiry is beyond the scope of the trustee's duties as defined by the deed of trust and the applicable statutes, and there is no appropriate basis for imposing tort liability on Chicago Title for failing to take actions that are beyond the scope of its duties.