Old Republic National Title Insurance Co. v. Attorney Title Services, Inc.

682 S.E.2d 134, 299 Ga. App. 6, 2009 Fulton County D. Rep. 2053, 2009 Ga. App. LEXIS 667
Court of Appeals of Georgia·Decided June 12, 2009·No. A09A0999·Published·Cited by 3 cases

Opinion

BLACKBURN, Presiding Judge.

Old Republic National Title Insurance Company (“Old Republic”) appeals the dismissal of its claim against attorney Scott Nathan and Attorney Title Services, Inc. (“Attorney Title”), a corporation owned by Nathan. Old Republic argues that the trial court erred: (1) in holding that its complaint asserted a claim for professional malpractice and was therefore subject to dismissal for its failure to file an expert affidavit in accordance with OCGA § 9-11-9.1; 1 (2) in concluding that, even absent the affidavit requirement, Old Republic’s claim was time-barred because it was subject to the four-year statute of limitation applicable to professional malpractice actions, as opposed to the six-year limitation period applicable to actions on a written contract; and (3) in failing to hold a hearing on the motion to dismiss before granting the same. Finding that Old Republic’s complaint asserted a claim for legal malpractice, we affirm.

A motion to dismiss based upon the lack of an expert affidavit is a motion to dismiss for failure to state a claim under OCGA § 9-11-12 (b) (6). On appeal, an order granting a motion to dismiss for failure to state a claim upon which relief may be granted should not be sustained unless *7 (1) the allegations of the complaint disclose with certainty that the claimant would not be entitled to relief under any state of provable facts asserted in support thereof; and (2) the movant establishes that the claimant could not possibly introduce evidence within the framework of the complaint sufficient to warrant a grant of the relief sought. Accordingly, we construe the pleadings in the light most favorable to the losing part[y] with the doubts resolved in [its] favor.

(Citation and punctuation omitted.) Williams v. Alvista Healthcare Center. 2

So viewed, the record shows that on December 7, 2000, appellees entered into a written “Approved Attorney Agreement” (“the Agreement”) with Old Republic. The Agreement identified “Scott L. Nathan, Attorney Title Services” as the “Approved Attorney” with whom Old Republic was contracting and contained the following recitations:

WHEREAS, Approved Attorney has applied to [Old Republic] for appointment as an Approved Attorney, and
WHEREAS, the parties hereto wish to enter into an agreement pursuant to which [Old Republic] directly or through its policy issuing agents will issue its title insurance commitments, policies and endorsements covering estates or interests in or liens upon real property situated in the State of Georgia based upon the services, title examinations and opinions of the Approved Attorney . . . ;

(Emphasis supplied.) The Agreement further obligated appellees “to maintain lawyers professional liability insurance for so long as any liability under this Agreement exists.”

In August 2003, Old Republic retained appellees, subject to the terms of the Agreement, to perform a title search on certain real property (the “Property”) that Leroy and Brenda Farley had contracted to purchase. Based on the results of that search, Attorney Title then prepared a title insurance commitment for the Farleys, with Nathan signing the title commitment certification. The title examination revealed that in December 2000, the original owners of the Property (from whom the Farleys were purchasing) had conveyed approximately one-half acre of the original tract to Fulton County, via a right of way deed. While Attorney Title listed the right *8 of way deed in the title insurance commitment it prepared, it nevertheless failed to exclude the acreage transferred to Fulton County from the legal description of the Property contained in the commitment. As a result, Old Republic, in reliance on the legal description of the Property contained in the title insurance commitment, issued to the Farleys a title insurance policy that included the acreage previously conveyed to Fulton County.

In 2004, after discovering that they did not have title to the acreage in question, the Farleys made a claim under their title insurance policy. On July 14, 2004, Old Republic paid the Farleys $46,000 to settle that claim. On July 7, 2008, Old Republic initiated the current action, asserting that appellees had breached the Agreement “by failing to less and except the [acreage] conveyed [to Fulton County] from the legal description [of the Property] certified under the [title commitment].” Appellees filed an answer and a contemporaneous motion to dismiss for Old Republic’s failure to file with its complaint an expert affidavit, as required by OCGA § 9-11-9.1 (a). The trial court granted that motion, finding that (1) the complaint alleged a claim for professional malpractice and that Old Republic’s failure to file the requisite expert affidavit required dismissal; and (2) even absent the affidavit requirement, the action was barred by the applicable statute of limitation. This appeal followed.

1. “Whether a complaint alleges ordinary negligence or professional malpractice is a question of law for the court, regardless of how the plaintiff categorizes [its cause of action].” (Punctuation omitted.) Grady Gen. Hosp. v. King. 3

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Old Republic National Title Insurance Co. v. Attorney Title Services, Inc., 682 S.E.2d 134, 299 Ga. App. 6, 2009 Fulton County D. Rep. 2053, 2009 Ga. App. LEXIS 667 (Ga. Ct. App. 2009).

682 S.E.2d 134 (Old Republic National Title Insurance Co. v. Attorney Title Services, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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