Matthew Fogg v. Fidelity National Title Insurance Company, 2014 D.C. App. LEXIS 112

In 2008, Fogg loaned $700,000 to Newbirth Investment for a commercial property, secured by the property, with repayment due in 2009.
Newbirth purchased the property from SAMC; Worldwide Settlements acted as settlement agent and provided Fidelity title insurance.
In 2009, Fogg purchased the property from Newbirth for $225,000 after canceling Newbirth’s debt; Milestone Title acted as settlement agent and issued Fidelity title insurance for $225,000.
On June 18, 2009, SAMC sued Fogg and others in DC Superior Court alleging Fogg knew of SAMC’s loan and security interest, claiming Fogg was not a bona fide purchaser.
Fogg asked Fidelity to defend; Fidelity denied coverage citing policy exclusions and the eight corners rule; Fogg later prevailed in the SAMC suit, finding him a bona fide purchaser; he then sued Fidelity for breach of contract and fiduciary duty.
The trial court later granted Fidelity summary judgment, ruling defense was excluded by the policy and that no fiduciary duty existed beyond the contract.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Duty to defend under eight corners rule	Fogg argues Stevens eight corners rule requires Fidelity to defend	Fidelity argues exclusions bar defense and policy limits apply	Stevens applied; no duty to defend under policy exclusions
Fiduciary duty of disclosure outside policy terms	Fogg asserts fiduciary duty from apparent conflict due to multiple buyers	Fidelity contends no fiduciary duty beyond the contract; schedule B applies	No fiduciary duty exists beyond policy terms; duty not recognized

Stevens v. United General Title Insurance Co., 801 A.2d 61 (D.C. 2002) (duty to defend determined by policy and complaint; eight corners rule)
Boyle v. Nat’l Cas. Co., 84 A.2d 614 (D.C. 1951) (early rule on insurer defense obligations and defense exclusion context)
M.A.P. v. Ryan, 285 A.2d 310 (D.C. 1971) (policy interpretation; limits on insurer obligations)