Barthels

In this action for title abstractor’s negligence, we hold that the negligence of the abstractor did not cause the property to lose value. Therefore, the property owner is not entitled to damages measured by the loss in value of the property. We also hold the trial court correctly determined other aspects of the award of damages. We affirm.

Facts

In 1976, Herbert Barthels purchased the last beach front parcel of property in the City of Santa Barbara (the City). He paid $24,500 for the unimproved lot. Escrow was through the Santa Barbara Title Company (Title Company) which also issued a policy of title insurance. The policy insured title to the lot and an appurtenant easement for access 15 feet wide.

Barthels, a local dentist, planned to build his residence on the parcel. In June of 1989, during the permitting process, he learned that the access easement was only seven and a half feet wide, and not fifteen feet as represented by the Title Company. The City refused to issue a building permit without a 15-foot-wide easement. The Title Company tendered $42,875, representing the purchase price as increased by the title insurance policy inflation endorsement.

Barthels sued…