Holman-Farrar Holdings, LLC v. Old Republic National Title Insurance Company

CourtDistrict Court, W.D. Texas
DecidedSeptember 17, 2025
Docket1:22-cv-00937
StatusUnknown

This text of Holman-Farrar Holdings, LLC v. Old Republic National Title Insurance Company (Holman-Farrar Holdings, LLC v. Old Republic National Title Insurance Company) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holman-Farrar Holdings, LLC v. Old Republic National Title Insurance Company, (W.D. Tex. 2025).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF TEXAS AUSTIN DIVISION

HOLMAN-FARRAR HOLDINGS, § No. 1:22-cv-937-DAE LCC, § Plaintiff, § § vs. § § OLD REPUBLIC NATIONAL § TITLE INSURANCE COMPANY, § § Defendant. §

ORDER DENYING MOTION FOR RECONSIDERATION

Before the Court is Plaintiff Holman-Farrar Holdings, LLC’s (“Holman-Farrar”) Motion for Reconsideration of the Court’s Order Granting Summary Judgment, (Dkt. # 52), filed on November 8, 2024, (Dkt. # 55). On November 20, 2024, Defendant Old Republic National Title Insurance Company (“Old Republic”) filed a Response to Plaintiff’s Motion for Reconsideration. (Dkt. # 56.) On November 27, 2024, Holman-Farrar filed its reply. (Dkt. # 57.) The Court finds this matter suitable for disposition without a hearing. After carefully considering the briefs filed in support of and against the motion, and the relevant law, the Court DENIES Holman-Farrar’s Motion for Reconsideration (Dkt. # 55) for the following reasons. BACKGROUND

This case involves a breach of contract action brought by Plaintiff Holman-Farrar against Defendant Old Republic. (Dkt. # 42-2, Appx. at 8–11, 87.) In its suit, Holman-Farrar alleged Old Republic breached a title insurance policy by mishandling a claim based on two recorded instruments giving a neighboring

landowner the right to use a septic system located on Holman-Farrar’s property. (Id.) On June 28, 2018, Holman-Farrar purchased a property comprised of two adjoining tracts (the “Property”). (Dkt. 1-1 at 5.) Simultaneously, Holman-

Farrar purchased an Owner’s Policy of Title Insurance through Old Republic (the “Policy”). (Id. at 10.) (Dkt. # 42-2, Appx. at 56.) Subject to its terms, the Policy indemnifies Holman-Farrar against defects in, or encumbrances on, its title to the

Property up to the $4,150,000.00 amount of insurance. (Dkt. # 42-2, Appx. at 56, 58.) In the summer of 2019, Holman-Farrar discovered the existence of a deed and reciprocal easement which granted the neighboring Crestwood property

(“Crestwood”) continuing use of the septic system on Holman-Farrar’s property “only so long as the City of San Marcos is not furnishing sewer and water facilities to both of said tracts.” (Dkt. # 42-2, Appx. at 93–94, 116.) Holman-Farrar properly notified Old Republic of the two recorded instruments on or about February 3, 2020. (Dkt. # 42-2, Appx. at 37.)

On March 20, 2020, Old Republic accepted coverage under the Policy for “certain rights reserved and/or granted” to Crestwood to use the Septic System in the recorded instruments (the “Encumbrance”). (Dkt. # 42-2, Appx. at 128.)

Old Republic retained counsel, Fred Jones, for Holman-Farrar to attempt to resolve the covered title defect. (Dkt. # 42-3, Appx. at 218–19.) Despite attempts by Mr. Jones to remedy the situation and resolve the claim, Holman-Farrar hired its own local counsel who allegedly negotiated with

the City of San Marcos for an extension of the sewer line to the Holman-Farrar and Crestwood properties. (Dkt. # 45 at 7.) Holman-Farrar was allegedly able to obtain a Developer Participation Agreement, in which the City of San Marcos

agreed to reimburse Holman-Farrar up to $500,000 of the cost of bringing sewer services to those properties. (Id.) Through mediation arranged by its own local counsel, Holman-Farrar was able to obtain an agreement from UC2 Ltd. (“UC2”), the owners of Crestwood, that they would pay up to $225,000 of the cost of

extending the sewer line to the properties. (Dkt. # 42-2, Appx. at 40, 42.) On these facts, Holman-Farrar asserted a breach of contract action based on Old Republic’s alleged: (1) failure to locate the Recorded Instruments in

its title search and disclose them to Holman-Farrar; and (2) failure to implement a credible remedy in resolving the Encumbrance. (Dkt. # 42-2, Appx. at 8–11, 87.) Holman-Farrar sought to recover: (1) out-of-pocket costs related to the condition of

the Septic System; (2) out-of-pocket costs associated with the City sewer line extension; (3) expenses associated with Holman-Farrar’s settlement with Crestwood; (4) attorneys’ fees and expenses Holman-Farrar paid to Jon Peterson

and David Sergi; and (5) “lost opportunity” damages based on Holman-Farrar’s inability to develop the Property as it planned. (Dkt. # 42-2, Appx. at 15–18, 88– 89, 92.) On April 25, 2025, Defendant filed its Motion for Summary

Judgment. (Dkt. # 42.) In its Motion, Old Republic argued that summary judgment was proper because (1) Holman-Farrar cannot establish any breach of the title policy by Old Republic, and (2) Holman-Farrar cannot establish any damages

sustained as a result of any alleged breach of the title policy. (Id. at 4.) Old Republic reasoned that Holman-Farrar could not establish breach because (a) Old Republic had no duty to discover and disclose the deed and reciprocal easement to Holman-Farrar; (b) Holman-Farrar failed to cooperate with Old Republic and

entered into a settlement without its prior consent; and (c) Old Republic could not breach the title policy by refusing to pay for alleged losses that were not payable under the policy terms. (Id. at 4.) Moreover, Holman-Farrar could not establish

damages because (a) Holman-Farrar cannot adduce competent evidence of the fact or amount of any damages recoverable from Old Republic; (b) the alleged damages Holman-Farrar claims are not payable under the title policy and/or are explicitly

excluded or limited by the title policy’s terms; and (c) there is no evidence of any covered or payable damage or loss under the title policy. (Id.) In its Order Granting Summary Judgment, the Court held that

Holman-Farrar failed to point to material facts that could create a genuine dispute regarding either the breach or the damages element of its claim. (Dkt. # 52 at 10, 14.) Specifically, with respect to breach, the Court found that Holman-Farrar pointed to no provision in the Policy that obligates Old Republic to discover and

disclose the Encumbrance, (Id. at 8), and that Holman-Farrar failed to put forward facts to rebut the non-cooperation allegations asserted by Old Republic, (Id. at 9). With respect to damages, the Court held that the damages sought by Holman-Farrar

were not payable under the Policy. (Id. at 10–14.) Moreover, Holman-Farrar had not provided evidence of “any diminution in the value of the Property” as a result of the Encumbrance, “the post-agreement expenses related to the settlement,” or “the costs [Holman-Farrar] [had] incurred in connection with any curative efforts.”

(Id.) Thus, the Court reasoned, Holman-Farrar failed to meet its burden on the damages element as well. (Id.) Accordingly, the Court granted Old Republic’s Motion for Summary Judgment. (Dkt. # 52 at 15.) On November 8, 2024, Holman-Farrar filed a Motion for Reconsideration (the “Motion”), asking the court to reconsider its grant of

summary judgment. (Dkt. # 55.) LEGAL STANDARD “[T]he Federal Rules of Civil Procedure do not recognize a general

motion for reconsideration.” St. Paul Mercury Ins. v. Fair Grounds Corp., 123 F.3d 336, 339 (5th Cir. 1997). Rather, courts treat such motions as motions pursuant to either Rule 54(b), 59(e), or 60 depending on when the motion is brought and the type of order that the party asks the Court to reconsider. See, e.g., id. (treating a

motion to reconsider as a motion pursuant to Rule 59(e)). “A motion asking the [C]ourt to reconsider a prior ruling is evaluated . . . as a motion . . . under Rule 59(e) . . . [when] filed within twenty-eight days after the entry of judgment.”

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