3rd Circ. Creates Title Insurance Defense Duty Limits

By Jeannie O'Sullivan (September 11, 2018, 7:08 PM EDT) -- The Third Circuit has ruled that title insurers aren't necessarily duty-bound to defend all claims that arise in a lawsuit targeting a policyholder, issuing a precedential decision in favor of Stewart Title Guaranty Co. in a mortgage company's suit stemming from a defaulted loan.

A three-judge panel on Monday upended a district court's ruling in favor of Ocwen Loan Servicing LLC, finding that the "in for one, in for all" civil litigation rule, which requires an insurer to defend all claims in a complaint, shouldn't apply when insurance coverage is only limited to title-specific claims. Ocwen had sought coverage against claims...

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