Murphy v. Ticor Title Insurance
316 Ga. App. 97
| Ga. Ct. App. | 2012Background
- Murphy and his father purchased 85 acres in Franklin County in 1987; deed included a right-of-way and easement for ingress/egress over a road called Lakeview Lane.
- The Murphys’ property abutted Lake Side Acres, with Lakeview Lane providing access; an unpaved dirt road extended across Murphy’s land.
- Ticor Title Insurance issued a title policy for the property, with premiums paid by Murphy; Schedule A described the land and included the easement.
- Policy language included exclusions and provisions stating lack of right of access and unmarketability were insured and that defects attaching after the date of policy were excluded.
- In 2007 and again in 2009, a neighbor blocked Murphy’s access on Lakeview Lane; Murphy notified Ticor and made a claim for diminution in value; Ticor denied the claim as post-date-of-policy events.
- Trial court granted dismissal for failure to state a claim and later considered affidavits, converting the motion to summary judgment; on appeal, the court reviewed de novo and affirmed, holding the policy unambiguous and excluding coverage for post-policy events.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the policy language is ambiguous and requires construction in Murphy’s favor | Murphy argues ambiguities exist and should be construed in his favor | Ticor contends the policy language is clear and unambiguous | Ambiguity not found; contract construed as a whole in favor of insured when ambiguous; here, not ambiguous |
| Whether post-policy events that diminish value are covered | Murphy seeks coverage for post-1987 events affecting access | Events occurred after the policy date and are excluded by exclusions | Policy excludes post-date-of-policy events; no coverage for later obstruction of access |
Key Cases Cited
- Reed v. Auto-Owners Ins. Co., 284 Ga. 286, 287 (2) (667 SE2d 90) (2008) (Ga. 2008) (title claims and contract construction principles cited)
- Fidelity Nat. Title Ins. Co. v. Matrix Financial Sues. Corp., 255 Ga. App. 874, 878 (1) (567 SE2d 96) (2002) (Ga. App. 2002) (supports definitions and scope of title insurance)
- Fidelity Nat. Title Ins. Co. v. Keyingham Investments, LLC, 288 Ga. 312, 313 (1) (702 SE2d 851) (2010) (Ga. 2010) (policy construction and exclusions interpretation)
- Harkins v. Progressive Gulf Ins. Co., 262 Ga. App. 559, 560 (586 SE2d 1) (2003) (Ga. App. 2003) (court cites standard for policy ambiguities and construction)
- Green v. Sams, 209 Ga. App. 491, 497 (1) (433 SE2d 678) (1993) (Ga. App. 1993) (contract interpretation guidance and insurance policy construction)
- White v. Lawyers Title-Ins. Corp., 197 Ga. App. 780, 783 (4) (399 SE2d 526) (1990) (Ga. App. 1990) (insurer’s title insurance scope and related rights)