1119 DELAWARE v. Continental Land Title Co.
Opinion
Opinion
Klein, J.
Plaintiff and appellant 1119 Delaware, a California general partnership (Delaware), appeals an order of dismissal following the sustaining of a demurrer to its original complaint without leave to amend. The demurrer was interposed by defendants and respondents Continental Land Title Company (Continental) and Lawyers Title Insurance Corporation (Lawyers Title).
The essential issue presented is whether Continental is liable in negligence for omitting from an abstract of title the existence of a conditional use permit (CUP) which had been recorded against the subject real property. We also examine whether there was coverage under the title policy issued by Lawyers Title to Delaware.
We conclude Continental had a duty to report the CUP in the abstract of title because the recordation imparted constructive notice of what amounts to an encumbrance on title. Further, the CUP came within the affirmative insuring clauses of the Lawyers Title policy and was not excluded from coverage. Therefore, the order is reversed in part and affirmed in part.
Factual and Procedural Background
a. The complaint against Continental and Lawyers Title.