First American Title v. Lyons CA5

INTRODUCTION

A jury found Gregory Steven Lyons intentionally concealed an important fact (i.e., the existence of a judgment lien) from First American Title Insurance Company (First American) when it issued a title insurance policy and, as a result, First American was damaged in an amount equal to two-thirds of that lien. Lyons contends the trial court erred by allowing First American to substitute him into the lawsuit for a Doe defendant, ruling that amendment related back to the filing of the original complaint, and striking his statute of limitations defense. Lyons also challenges the judgment on the grounds that (1) the award of two-thirds of the lien amount indicates the jury disregarded the instructions and reached a compromise verdict; (2) First American’s proof of damages was legally insufficient; (3) First American had actual knowledge of the judgment lien and, thus, is estopped from claiming it was defrauded; and (4) Insurance Code sections 332 and 336, which address required disclosures and waivers of the right to information, bar First American’s claim against him. We reject each claim of error. First, the trial court properly allowed the Doe amendment to relate back…