Eastern Shore Title Co. v. OchseAnnotate this Case
In order to recover attorney’s fees against a negligent title searcher using the collateral litigation doctrine, the plaintiff must show that the title searcher’s negligence proximately caused the plaintiff to file a necessary collateral action, resulting in the plaintiff incurring reasonable litigation costs necessarily and in good faith, and that the plaintiff has not otherwise received compensation for those costs.
The Ochses purchased property from the Henrys. The Ochses later learned that a encumbrance bisecting their lot was part of a strip of land that had been granted to Dorchester County. Prior to this discovery, the Ochses filed a lawsuit against the Henrys to quiet title. The Ochses later filed a lawsuit against Chicago Title Insurance Company and Eastern Shore Title Company (ESTC), the title examiner, alleging breach of contract and negligence. The trial court found in favor of the Ochses and awarded a $215,710 against ESTC and Chicago Title, which was the amount of the attorney’s fees awarded to the Ochses in the Henry litigation. The trial court subsequently reduced its judgment against ESTC and Chicago Title by $215,710. The Court of Appeals affirmed, holding that the trial court did not err by reducing the damages awarded to the Ochses by the amount previously satisfied by the Henrys.