100 Investment Ltd. Partnership v. Columbia Town Center Title Co.
430 Md. 197
Md.2013Background
- Millers sold land in 1982; Partnership bought in 1986 via Cambridge (title work) and Dewberry survey; title commitment and Chicago Title-backed policy issued without disclosing Khan deed; Columbia later did similar for December transaction with Safeco; title commitments omitted the Khan sale and Partnership never owned the disputed tract at issue; title search failures led to later repurchase by Partnership and litigation across state/federal courts; trial court found a tort duty and proximate causation; appellate courts split on whether tort duty exists and whether Chicago Title is vicariously liable; exculpatory insurance clause later limited claims against Chicago Title; ultimately the court held a duty in tort owed by Title Companies to Partnership, but rejected vicarious liability for Chicago Title through exculpatory contract.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether title companies owe a tort duty in title searches | Partnership: intimate nexus; reliance on title information justifies duty | Title Companies: relationship is contractual; no tort duty | Yes, title companies owe a tort duty |
| Whether Chicago Title is vicariously liable for the Title Companies’ negligent search | Partnership seeks vicarious liability under respondeat superior | Exculpatory contract limits claims to policy terms; no vicarious liability | No vicarious liability due to contract exculpation (policy controls) |
Key Cases Cited
- Jacques v. First National Bank of Md., 307 Md. 527 (Md. 1986) (duty arising from special relationship in financial transactions)
- Corcoran v. Abstract & Title Co. of Md., Inc., 217 Md. 633 (Md. 1958) (title examiner duty to exercise reasonable care in title work)
- Walpert, Smullian & Blumenthal, P.A. v. Katz, 361 Md. 645 (Md. 2000) (Restatement 552 influence; privity-like nexus for economic losses)
- Chicago Title Ins. Co. v. Allfirst Bank, 394 Md. 270 (Md. 2006) (professional duty; limits of liability; context of title industry)
- Bank of Cal., N.A. v. First Am. Title Ins. Co., 826 P.2d 1126 (Alaska 1992) (duty for preliminary title information; reliance on commitment)