Facts: Spanish Inn Inc. (“Spanish Inn”) has entered into a $6 million construction credit agreement with Nara Bank for the construction of a hotel in Palm Springs, California. Nara Bank has been the subject of a trust agreement with respect to the property in order to secure its credit. In addition, Nara Bank required the Spanish inn to take out title insurance for protection against loss of mechanical pawn rights. Holding: A California appeals court does not consider the title insurer to be the cost of defending the mechanic`s pawn and is entitled to reimbursement from the previous owner, since the mechanic`s pawn rights were exempt from insurance coverage and the previous owner compensated the title insurer for losses on the mechanic`s pawn rights. [First American Title Insurance Co. v. Spanish Inn, Inc. (2015) 239 CA4th 598] First American having found that the mechanics were covered by title insurance and because its disposition was conclusive, Spanish Inn was bound by the First American`s determination and therefore obliged to compensate First American. Talk about giving away your rights. First, American required the defendants to defend and compensate First American pursuant to the terms of their compensation agreement with First American.
The defendants refused. First, American sued the defendants for $250,876.53 in damages, first, $207,119.58 in legal fees paid by First American for the defense against mechanical wagers, US$20,950 paid by First American to pay one of the pawn rights and 10% interest on the sum. Facts: A commercial property owner has a secure loan guaranteed by fiduciary insurance and has title insurance. As a condition of the policy, the owner compensates the insurer against the loss by pawning rights. Subsequently, the owner misses the completion period under the loan agreement and the lender declares the loan in default. The contractor who carried out the work registers the right to pledge to a mechanic in the field. The lender entrusts its fiduciary position to another mortgage holder who then purchases the property upon the forced sale. The contractor then attempts to compartmentalized the mechanic`s right to pledge. The new owner is entitled to the enforced execution of the title insurer, which defends them against the action in exercation and requires the previous owner to reimburse the costs related to the title insurer. While the case was 00 in court, First American filed an application for a summary decision on its claims against the Spanish Inn Defendants.