Insurer Owes Lender For Construction Liens, 7th Circ. Told
By Lance Duroni
Law360, Chicago (December 11, 2013, 5:02 PM ET) -- The lender to a failed $100 million real estate project urged the Seventh Circuit on Wednesday to order First American Title Insurance Co. to indemnify it against construction liens asserted in the developer's bankruptcy, arguing that the policy exclusion the insurer relies upon doesn’t apply.
A Wisconsin federal judge ruled in January that First American had no duty to indemnify lender BB Syndication Services Inc., finding that an exclusion under the title insurance policy was triggered because the lender had “created of suffered” the liens itself...