UNITED GENERAL TITLE INS. v. Casey Title, Ltd.

800 So. 2d 1061, 2001 WL 1334705
CourtLouisiana Court of Appeal
DecidedOctober 30, 2001
Docket01-CA-600
StatusPublished
Cited by26 cases

This text of 800 So. 2d 1061 (UNITED GENERAL TITLE INS. v. Casey Title, Ltd.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
UNITED GENERAL TITLE INS. v. Casey Title, Ltd., 800 So. 2d 1061, 2001 WL 1334705 (La. Ct. App. 2001).

Opinion

800 So.2d 1061 (2001)

UNITED GENERAL TITLE INSURANCE COMPANY,
v.
CASEY TITLE, LTD., John H. Norman & Northland Insurance Company Number.

No. 01-CA-600.

Court of Appeal of Louisiana, Fifth Circuit.

October 30, 2001.

*1062 Kurt D. Engelhardt, Kelly L. Covington, Hailey, McNamara, Hall, Larmann & Papale, L.L.P., Metairie, LA, Counsel for Casey Title, Ltd. and John H. Norman, Defendants/Appellants.

C. Lawrence Orlansky, Rachel Wendt Wisdom, Stone, Pigman, Walther, Wittmann & Hutchinson, L.L.P., New Orleans, LA, Counsel for John A. Poche, Jr., Third Party Defendant/Appellee.

Panel composed of Judges EDWARD A. DUFRESNE, JR., THOMAS F. DALEY and SUSAN M. CHEHARDY.

SUSAN M. CHEHARDY, Judge.

This matter originated as a suit by a title insurance company against its title insurance agent and a title examiner for errors and omissions in connection with title examinations and issuance of title insurance by the agent. Before us on this appeal is a judgment that dismissed the agent's and examiner's third-party demand against another mortgage holder on the subject properties, pursuant to an exception of lis pendens. We affirm.

Facts

On December 14, 1998 United General Title Insurance Company filed suit in Jefferson Parish against Casey Title, Ltd., John H. Norman, and their insurer, Northland Insurance Company.[1] United General alleged that on September 13, 1996 Casey was appointed as an agent of United General with authority to originate and solicit applications for title insurance, to issue commitments to insure, and to countersign and issue policies of title insurance. United General further alleged that Norman examined titles or abstracts of title to various properties and provided analysis of those examinations, in reliance upon which *1063 he would, on behalf of Casey, countersign and issue policies underwritten by United General.

According to the petition, on January 30, 1996 Casey and Norman closed three refinancing transactions under which Louwanda and Bruce Mullin refinanced mortgages on three rental properties they owned in Orleans Parish. In connection with the refinancing, Norman authorized Casey to issue United General policies on each transaction, insuring the mortgage lien of the lender, Schwegmann Bank and Trust Company, to be in first position on the property described in each respective policy. The petition alleged that the indebtedness secured by the liens insured in the policies was transferred to and is now held by United Companies Lending Corporation (hereafter "United Lending").

The petition further alleged that Norman, in conducting the title examination, learned that there were mortgages in favor of John Poche on each of the properties that would be superior in rank to the mortgages in favor of Schwegmann being insured by the United General policies. However, in order to make the Schwegmann mortgages rank first, Poche would have had to subordinate his interest to Schwegmann's. No release or subordination of that interest was obtained at the closing of the insured mortgages.

United General asserted that it received notice of the error or omission in connection with the title examination and closing by Casey and Norman after October 5, 1998, when the then-holder of the insured mortgages notified United General of the claims asserted in favor of Poche and that those claims were asserted to be superior in rank to the mortgages insured by United General to be in first position. As a result, United General alleged it had been damaged to the extent of the payments necessary to satisfy the prior liens against the properties, plus its attorneys' fees and costs incurred.

United General stated that pursuant to its agreement with Casey, Casey agreed to indemnify United General for any loss it sustained on account of any intentional or negligent act in connection with a closing by Casey or its agents, where a policy underwritten by United General was issued.

Casey and Norman filed an answer raising various affirmative defenses that incorporated a third-party demand against John Poche. In the third-party demand Casey and Norman alleged that Poche had expressly agreed to subordinate all mortgages in his favor on the three properties, prior to or at the time of the closing of the transaction on January 30, 1996, and that prior to the closings Poche reaffirmed to both Norman and to Bruce Mullin, the mortgagor, his commitment to subordinate his mortgages. However, Poche declined subsequent requests by Norman to execute the subordinations.

Casey and Norman asserted that Poche's refusal to execute the subordinations resulted in his becoming unjustly enriched and they prayed that Poche be held liable to them for all sums they may become legally obligated to pay as a result.

On June 29, 2000 John Poche filed a declinatory exception of lis pendens, on the ground that there currently were three suits initiated by United Companies Lending Corporation against the Mullins pending in Civil District Court in Orleans Parish, which sought to foreclose on the mortgaged properties. Poche asserted that he was the superior mortgage holder of record on the three Mullin properties and that he had filed an intervention in each of the Orleans Parish actions asserting his rights as owner of the earliest-filed *1064 and first-ranking mortgage on the properties.

Poche asserted further that United Lending had filed a reconventional demand against him in the Orleans Parish proceedings, which he alleged involved the same parties, in the same capacities, and the same transaction or occurrence as the third-party demand filed against him by Casey and Norman in the Jefferson suit. He pointed out that in the Orleans Parish action, United Lending contended that he failed to subordinate his interest in the Mullin properties to those of United Lending, and that in the Jefferson Parish action, Norman and Casey, as agents for United Lending's title insurer, make the same claim. Therefore, Poche asserted, the later-filed Jefferson Parish third-party demand should be dismissed pursuant to La.C.C.P. art. 531.[2]

On October 5, 2000 the Jefferson Parish district court rendered judgment in favor of Poche, maintaining the exception of lis pendens and dismissing the third party demand of Casey and Norman. The trial judge assigned written reasons as follows, in pertinent part:

The court finds that the reconventional demand in Orleans and the third-party demand in the instant suit involve the same dispute about the same alleged agreement to subordinate between the parties. This same transaction or occurrence in both suits depends on resolution of identical factual and legal issues.
The court further finds that the two pending lawsuits involve the same identity of parties. There is a mutuality of interest for lis pendens analysis in that the agent of United Lending is asserting the same claim against Poche in Jefferson Parish: Casey and Norman were acting as agents of United General who insured United Lending in this matter.
The court thus finds that the requirements of Code of Civil Procedure article 531 are satisfied. The later filed third-party demand in this proceeding is dismissed.

On appeal Casey and Norman assert that the trial court erred in finding that the Orleans Parish action involved "the same parties in the same capacities" as a basis for maintaining the exception of lis pendens and dismissing the third-party demand of Casey Title and Norman against Poche.

Judicial Notice of Orleans Parish Proceedings

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Cite This Page — Counsel Stack

Bluebook (online)
800 So. 2d 1061, 2001 WL 1334705, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-general-title-ins-v-casey-title-ltd-lactapp-2001.