Shah

I. FACTUAL AND PROCEDURAL BACKGROUND

This factual summary is based on plaintiff’s first amended complaint (Complaint) as well as recorded conveyances for the subject property.

A. ORIGINAL GRANT DEED AND TITLE INSURANCE POLICY (1995)

In December 1995, Mary R. Silva transferred her interest in certain grazing property via grant deed to “Jay C. Shah, Living Trust Dated June 8, 1993.”2 Plaintiff believed he was obtaining fee simple title to the property and paid $350,000, which, according to the Complaint, represented the fair market value for fee simple title. Unbeknownst to plaintiff, Silva held only a life estate in the property; her children held the remainder interest. To insure his purchase, plaintiff obtained a title insurance policy from defendant. Much of the original insurance policy was lost or destroyed, but Schedules A and B of the original policy were located in defendant’s records. For the missing portions of the policy, the parties agree that the general terms were taken from the California Land Title Association Standard Policy – 1990 Form (CLTA 1990 Form). Section 1(a) of the CLTA 1990 Form’s Conditions and Stipulations defines “insured” as “the insured…