Phipps v. Old Republic National Title Insurance Co.
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In this property dispute, the Supreme Court affirmed the summary judgment order entered by the district court in favor of Old Public National Title Insurance Company and Security Title and Abstract Company (collectively, Defendants) upon the parties' stipulated "threshold legal issue" regarding Defendants' duty to Plaintiffs, holding that the district court did not err.
At issue was whether Defendants owed a legal duty arising out of their issuance of a preliminary title commitment. Plaintiffs filed this action alleging negligence, professional negligence, and negligent misrepresentation on the part of Defendants when conducting a title examination. The district court concluded that Plaintiffs' claims were foreclosed because the statutes governing the issuance of a title insurance policy did not impose a duty with respect to an offer of title insurance in a preliminary commitment. The Supreme Court affirmed, holding that Plaintiffs' claims could not be sustained.
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