Karl

C. Robert and Joan Karl (plaintiffs) sued defendant Commonwealth Land Title Insurance Company (insurer), alleging that insurer had wrongfully failed to pay a claim on their title policy, to wit, a tax lien purportedly senior, and hence threatening, to plaintiff’s trust deed. Insurer moved for summary judgment, arguing plaintiffs had not suffered any loss insured by the policy because they had recouped all of their money. The trial court agreed. Following entry of judgment, plaintiffs appealed.

Plaintiffs argue summary judgment was inappropriate. First, they contend that even if they had fully recouped all amounts owed on the secured note which the title policy insured, their profit from the resale of the security was reduced by the amount of the insured-against tax lien, which lost profit was a “loss” under the policy. Second, plaintiffs argue that even if an affirmative loss (i.e., failure to collect enough to cover secured amounts plus tax lien advances) is required before the title policy covers the loss, there are triable issues of fact as to whether such a loss occurred.

For the reasons discussed below, we reject plaintiffs’ first argument because a title policy…