Deutsche Bank National Association v. First American Title Insurance Company (Lawyers Weekly No. 10-124-13)
NOTICE: All slip opinions and orders are subject to formal revision and are superseded by the advance sheets and bound volumes of the Official Reports. If you find a typographical error or other formal error, please notify the Reporter of Decisions, Supreme Judicial Court, John Adams Courthouse, 1 Pemberton Square, Suite 2500, Boston, MA 02108-1750; (617) 557-1030; SJCReporter@sjc.state.ma.us SJC‑11265 DEUTSCHE BANK NATIONAL ASSOCIATION,[1] trustee,[2] vs. FIRST AMERICAN TITLE INSURANCE COMPANY. Suffolk. March 7, 2013. ‑ July 11, 2013. Present: Ireland, C.J., Spina, Cordy, Botsford, Gants, Duffly, & Lenk, JJ. Insurance, Title insurance, Insurer’s obligation to defend. Real Property, Title insurance. Civil action commenced in the Superior Court Department on December 11, 2009. The case was heard by S. Jane Haggerty, J., on motions for summary judgment. The Supreme Judicial Court on its own initiative transferred the case from the Appeals Court. Richard E. Briansky (Jeffrey J. Pyle with him) for the plaintiff. Jason A. Manekas for the defendant. CORDY, J. In the present appeal, we consider whether the terms of a title insurance policy require First American Title Insurance Company (First American) to defend Deutsche Bank National Association (Deutsche Bank) in a lawsuit brought by a third party, Karla Brown,[3] seeking rescission of a note and first mortgage securing that note, originated by Deutsche Bank’s predecessor in interest in connection with the purchase of Brown’s home. Following First American’s denial of coverage, Deutsche Bank instituted this action seeking a judgment declaring that First American has a duty to defend it in Brown’s lawsuit and seeking statutory damages. We transferred the case here on our own motion following Deutsche Bank’s appeal from a Superior Court judge’s order granting summary judgment in favor of First American. On appeal, Deutsche Bank argues that the policy is susceptible to an interpretation that it covers the claims alleged in Brown’s complaint and that two exclusions contained within the policy do not preclude coverage.[4] Based on these arguments, Deutsche Bank contends that First American is under a contractual duty to defend it in the Brown lawsuit. In addition, Deutsche Bank renews its claim for damages under G. L. c. 93A due to First American’s alleged violation of G. L. c. 176D, § 3.[5] In response, First American argues that the allegations in Brown’s complaint do not trigger its duty to defend because they relate to a predatory lending scheme concerning the validity of the underlying note and not the enforceability of Deutsche Bank’s mortgage interest. Alternatively, First American argues that it need not defend Deutsche Bank because Brown’s claims are excluded by the policy. For the reasons discussed below, we conclude that the allegations in […]
GMAC Mortgage, LLC v. First American Title Insurance Company (Lawyers Weekly No. 10-056-13)
NOTICE: All slip opinions and orders are subject to formal revision and are superseded by the advance sheets and bound volumes of the Official Reports. If you find a typographical error or other formal error, please notify the Reporter of Decisions, Supreme Judicial Court, John Adams Courthouse, 1 Pemberton Square, Suite 2500, Boston, MA 02108-1750; (617) 557-1030; SJCReporter@sjc.state.ma.us SJC‑11161 GMAC MORTGAGE, LLC vs. FIRST AMERICAN TITLE INSURANCE COMPANY. December 4, 2012. ‑ April 4, 2013. Present: Ireland, C.J., Spina, Cordy, Botsford, Gants, Duffly, & Lenk, JJ. Insurance, Title insurance, Coverage, Insurer’s obligation to defend. Real Property, Title insurance. Contract, Insurance. Mortgage, Insurance of mortgagee’s interest. Land Court, Jurisdiction. Practice, Civil, Complaint, Transfer of action to Superior Court, Removal of case to federal court. Supreme Judicial Court, Certification of questions of law. Certification of questions of law to the Supreme Judicial Court by the United States District Court for the District of Massachusetts. Richard E. Briansky for the plaintiff. Jason A. Manekas for the defendant. SPINA, J. This case involves multiple litigations among three parties — First American Title Insurance Company (First American), the insurer; GMAC Mortgage, LLC (GMAC), the insured mortgagee; and Elizabeth Moore (Mrs. Moore), the homeowner — arising out of a defect in the title to Mrs. Moore’s home. First American brought suit on behalf of GMAC in the Land Court, seeking to reform the deed to Mrs. Moore’s property or to equitably subrogate her interest in the property behind GMAC’s mortgage. Because of the Land Court’s jurisdictional restrictions, Mrs. Moore then initiated suit in the Superior Court against GMAC, alleging intentional infliction of emotional distress and violation of G. L. c. 93A for GMAC’s unfair and deceptive conduct in pursuing foreclosure, and “money had and received” for mortgage payments alleged to have been made to GMAC in error. Because the two actions were closely related, the Chief Justice for Administration and Management ordered, pursuant to his power under G. L. c. 211B, § 9 (xix), that the Land Court action be transferred to the Superior Court and consolidated with Mrs. Moore’s action. However, after the order of transfer, but before the Land Court action was docketed in the Superior Court, counsel for GMAC removed Mrs. Moore’s litigation to the United States District Court for the District of Massachusetts. Therefore, the Land Court action never formally was consolidated with Mrs. Moore’s action in the Superior Court. However, GMAC raised counterclaims in Mrs. Moore’s action, now in the United States District Court, that duplicated the reformation and equitable subrogation claims asserted in the Land Court, and an attorney for First American appeared on behalf of GMAC in […]