Meridian Title Corp. v. Gainer Group, LLC
946 N.E.2d 634
Ind. Ct. App.2011Background
- Meridian Title is the appellant-defendant in an interlocutory appeal from a trial court denial of its motion for summary judgment.
- Gainer Group sought recovery of litigation expenses and attorney fees related to a title insurance claim after Lawyers Title accepted Gainer Group's claim.
- The Trust that sold property to Gainer Group engaged Meridian to procure title insurance for the sale.
- Meridian had no prior dealings with Gainer Group before closing, and Gainer Group did not interact with Meridian beyond the closing.
- Meridian advised Gainer Group that the policy contained a survey-related exception, and Meridian attempted to facilitate a settlement between the Trust and Gainer Group after the dispute arose.
- The court held that no intimate, long-term relationship existed creating a duty beyond general care, but a special circumstance existed that obliged Meridian to advise on coverage, which it fulfilled; the trial court’s denial of summary judgment was reversed and remanded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Meridian owed a duty beyond general care. | Gainer Group argues an intimate relationship or special circumstance imposed extended duties on Meridian. | Meridian contends no intimate relationship existed; any duty beyond general care depends on a special circumstance that was fulfilled. | Yes, a special circumstance existed and Meridian fulfilled its extended duty. |
Key Cases Cited
- Myers v. Yoder, 921 N.E.2d 880 (Ind. Ct. App. 2010) (insurance agent's duty can extend beyond procurement in special circumstances)
- American Family Mut. Ins. Co. v. Dye, 634 N.E.2d 844 (Ind. Ct. App. 1994) (special relationship can extend agent's duty to advice on coverage)
- Court View Centre, L.L.C. v. Witt, 753 N.E.2d 75 (Ind. Ct. App. 2001) (factors for a special relationship include discretion, counseling, expertise, and compensation)
- Erie Ins. Co. v. Hickman by Smith, 622 N.E.2d 515 (Ind. 1993) (duty of insurer to insured; not automatically extended to an insurer's agent)