Equity Income Partners, Lp v. Chicago Title Insurance Comp.

ORDER

The issue for decision in this diversity case is whether a lender’s full-credit bid at an Arizona trustee’s sale constitutes payment under a lender’s title insurance poli cy. Arizona law is dispositive, but unsettled. We therefore request the Arizona Supreme Court to interpret, under Arizona law, the provisions of a standard form lender’s title insurance policy. See Ariz. Rev. Stat. §§ 12-1861 to -1867; Ariz. Sup. Ct. R. 27.

I. Factual and Procedural Background

We summarize the material facts and procedural history as they relate to the questions to be certified.

In May 2006, Scott Mead and Keith Vertes (“Borrowers”), obtained two $1.2 million loans from Equity Income Partners Limited Partnership (“Equity”) to purchase two adjacent parcels (the “Properties”) in Maricopa County, Arizona. LER 6, 174-83, 343, 351; IER 19-30. The loans were each secured by deeds of trust. LER 187, 198. At the time, the Properties were collectively appraised as worth over $3,000,000. IER 54-77. Borrowers purchased owner’s title insurance from Trans-nation Title Insurance Company; LER 14, 169; Lenders purchased an American Land Title Association Loan Policy (10-17-92) with ALTA Endorsement —…