News

Early Sullivan successfully represented United General Title Insurance Company (“United General”) in opposing RNT Holding’s appeal of Early Sullivan’s underlying summary judgment victory for United General. RNT is a company owned by billionaire mogul Ronald N. Tutor. The Court of Appeal’s decision in RNT Holdings, LLC v. United General Title Insurance Company, Case No. B250089 is of paramount importance to the title insurance industry. The decision provides clarity regarding the interpretation of key title insurance Exclusion 3(a) (which language is included in most title insurance policies) ruling that Exclusion 3(a) is triggered if the insured’s conduct was intentional, regardless of: (a) whether the insured actually intended to create a title defect through its conduct, and (b) whether the insured knew that a title defect might occur from the insured’s intentional act. The decision also establishes for the first time that an insured lender’s release of its insured interest in a subject property terminates the insurer’s potential liability under the policy, regardless of the occurrence of a covered risk at the time of the release. Click on “Download PDF” to the right to read the full decision.