George M. Sonnett, Jr. and Wendy Z. Burgers Sonnett, Husband and Wife v. First American Title Insurance Company, a California Corporation, and First American Title Insurance Company of Sublette County, a Wyoming Corporation, 309 P.3d 799

The Sonnetts purchased a 20‑acre property in Sublette County in 2001 and obtained title insurance from First American; the policy listed several easements but did not mention a "Master Plan."
The Master Plan had been created in 1989 as part of the county’s approval process to rezone the parcel from Agricultural to Recreational; the county’s rezoning resolution incorporated the Master Plan and it was recorded in the county resolution records.
The Sonnetts operated a lodge inconsistent with some Master Plan restrictions; in 2006 the county notified them they were violating the Master Plan, and the Sonnetts closed the lodge in 2007.
The Sonnetts claimed the Master Plan was an encumbrance rendering title unmarketable and also alleged lack of legal access; they submitted a pre‑claim notice to First American, which denied coverage based on policy exclusions for the Sublette County Zoning Resolution and governmental regulations.
The Sonnetts sued First American for breach of contract (title coverage), negligence, and bad faith; the district court granted summary judgment to First American and dismissed the complaint, and the Sonnetts appealed.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the Master Plan is a covered encumbrance making title unmarketable	Master Plan is a restrictive covenant/encumbrance on title, so policy covers loss	Master Plan is an amendment to Sublette County Zoning Resolution and expressly excluded by the policy	Court: Master Plan is part of zoning resolution and excluded; summary judgment for First American
Bad faith denial of coverage	First American unreasonably denied coverage (Master Plan not zoning; also access claim)	Denial was reasonable because policy excludes zoning amendments; investigation was adequate	Court: No bad faith — claim was fairly debatable and investigation was sufficient; summary judgment for First American
Negligence (failure to disclose recorded interests)	First American negligently failed to disclose recorded interests/defects	Title insurer’s obligations are contractual; no independent tort duty absent contractual undertaking	Court: Wyoming law bars tort duty where insurance contract governs; summary judgment for First American
Procedural challenges (judicial notice of prior order; striking affidavits; ruling before mediation)	District court erred procedurally in taking judicial notice, striking affidavit material, and ruling despite mediation order	Appellate briefing lacked developed argument or authority on these points	Court: Declined to consider these undeveloped arguments; issues waived

Elk Ridge Lodge, Inc. v. Sonnett, 254 P.3d 957 (Wyo. 2011) (background facts regarding the Master Plan and property)
Hulse v. First Am. Title Co. of Crook Cnty., 33 P.3d 122 (Wyo. 2001) (title insurer has no tort duty to search/disclose absent contractual undertaking)
Matlack v. Mountain W. Farm Bureau Mut. Ins. Co., 44 P.3d 73 (Wyo. 2002) (bad faith standard: claim must be not fairly debatable; two‑part test)
Granite Springs Retreat Ass’n, Inc. v. Manning, 133 P.3d 1005 (Wyo. 2006) (restrictive covenants can burden title and affect marketability)
Bear Fritz Land Co. v. Kachemak Bay Title Agency, Inc., 920 P.2d 759 (Alaska 1996) (distinguishing zoning/regulatory restrictions from title encumbrances)
Haw River Land & Timber Co. v. Lawyers Title Ins. Corp., 152 F.3d 275 (4th Cir. 1998) (title insurance protects legal title defects, not governmentally imposed use restrictions)