Horvath v. Lawyers Title Ins. Corp., 2013-Ohio-1295
Mar 29, 2013OUTCOME: Summary judgment for the title insurance company was affirmed. There was no evidence in the record to support a finding of bad faith. Court also found that escrow functions are outside of the scope of agency for a title insurance agency agreement.
Horvath sued the title insurance company for the failure of her escrow agent's failure to offer closing protection coverage after the escrow agent absconded with the purchase funds. She sued the title ... insurance company for bad faith denial of her claim. The title insurance company denied she had a claim and denied that it acted in bad faith by refusing to recognize a claim, as she did not have a policy with the title insurer. The title insurance company also denied liability under Horvath’s agency theory because it was not liable for escrow functions when the Agency Agreement was “limited to the issuance of insurance commitments, policies and endorsements and the collection of premiums.” The trial court granted summary judgment in favor of the title insurance company.
