Coleman

During the year 1956 the plaintiffs purchased a vacant piece of real property in Riverside County; before the escrow closed July 15, 1957, plaintiffs purchased a title insurance policy from defendant, which policy described the property insured in the same manner as it was legally described in the deed, except that the policy stated the land was in the “Beaumont Irrigation District, City of Beaumont,” whereas these words were absent from the legal description contained in the deed. The policy excluded “water rights” and “claims or title to water” from its insuring agreement.

It was admitted by the defendant, and the court found, that the property was neither in the City of Beaumont nor within the Beaumont Irrigation District.

The trial court concluded from the findings of fact that the words “Beaumont Irrigation District” contained in the policy description gave no vested interest in the water rights of the district to the plaintiffs, and the erroneous inclusion of such words did not violate a covenant in the policy against unmarketability. As a consequence judgment favored defendant title company in plaintiffs’ claim for damages, and from that judgment plaintiffs have appealed,…