Jimenez v. Chicago Title Insurance Co.
310 Ga. App. 9
| Ga. Ct. App. | 2011Background
- Jimenezes purchased DeKalb County real property in May 2006 and paid for a Chicago Title ALTA title insurance policy at closing.
- Parcel 1 had been deeded to Richard Gullett by the seller, and Gullett later succeeded in quiet title to Parcel 1.
- Parcel 2 was omitted from the deed’s legal description drafted by the closing attorney, and the Jimenezes never received the actual policy.
- Chicago Title contested damages but did not answer; at bench trial, the court awarded $90,000 for loss of Parcel 1, found no liability for Parcel 2, and denied fees or penalties.
- ALTA policy controls; damages measured as the difference in value between the insured estate and the estate as insured subject to encumbrance.
- Evidence included appraisals showing diminished value of the insured property; Chicago Title tendered $64,610 which the Jimenezes rejected.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Liability for Parcel 2 damages | Jimenezes contend Chicago Title insured Parcel 2 and is liable for its loss. | Chicago Title argues Parcel 2 was not conveyed by deed and not insured. | No liability for Parcel 2. |
| Effect of default on liability admissions | Default admissions cover Parcel 2 damages under ALTA policy. | Default admits only facts, not legal conclusions; no basis to extend liability to Parcel 2. | Default does not establish liability for Parcel 2. |
| Bad faith penalties under OCGA 33-4-6 | Jimenezes deserve penalties and attorney fees for bad faith delay in payment. | No bad faith shown; insurer investigated and timely in responding. | No bad faith penalties or attorney fees awarded. |
| Damages for loss of Parcel 1 | Parcel 1 loss diminished the entire insured estate; damages must reflect this. | Damage measure and evidence insufficient or misapplied; settlement accepted value not controlling. | Evidence supported $90,000 award; not error to deny involuntary dismissal. |
| Involuntary dismissal at close of case | Evidence supported liability and damages for Parcel 1. | Evidence insufficient to establish Parcel 1 loss beyond speculation. | Trial court did not err in denying involuntary dismissal. |
Key Cases Cited
- Stroud v. Elias, 247 Ga. 191 (Ga. 1981) (default admissions do not admit legal conclusions)
- Anderson v. Commonwealth Land Title Ins. Co., 284 Ga. App. 572 (Ga. App. 2007) (title insurer's liability under ALTA policy)
- Lynburn Enterprises v. Lawyers Title Ins. Corp., 191 Ga. App. 710 (Ga. App. 1989) (policy-based liability for title defects)
- Crawford v. Dammann, 277 Ga. App. 442 (Ga. App. 2006) (directed verdict standards; evidence sufficiency)
- BayRock Mgt. Corp. v. Chicago Title Ins. Co., 286 Ga. App. 18 (Ga. App. 2007) (bad faith delay in payment; evidence of investigation)
- U.S. Life Title Ins. Co. v. Hutsell, 164 Ga. App. 443 (Ga. App. 1982) (measure of damages for insured estate encumbrances)
- Freedman v. Housing Auth. of Atlanta, 108 Ga. App. 418 (Ga. App. 1963) (evidence evaluation in damages determinations)