Deutsche Bank National Trust Company vs. Fidelity National Title Insurance Company
Las Vegas – 1:30 p.m. – Full Court
PennyMac Corporation vs. Westcor Land Title Insurance Company
Las Vegas – 2:00 p.m. – Full Court
Deutsche Bank National Trust Company vs. Fidelity National Title Insurance Company
Docket No. 84161
Las Vegas – 1:30 p.m. – Full Court
This matter involves whether a title-insurance policy provides coverage for losses relating to the extinguishment of the insured’s deed of trust resulting from the enforcement of the superpriority piece of a homeowner association’s assessment lien. The issues on appeal are whether: (1) in applying NRS 116.3116, a title-insurance policy covers losses relating to the extinguishment of a security interest resulting from the enforcement of a superpriority HOA assessment lien because (a) the priority of an HOA's assessment lien exists from the date of recordation of the HOA's declaration of CC&Rs, (b) an HOA's assessment lien arises by reason by of a provision in the HOA's declaration of CC&Rs mandating annual assessment obligations, and (c) the violation of the covenant for assessments constitutes a future violation on the land; (2) assuming coverage exists under the policy, claims for declaratory judgment, breach of contract, and breach of the covenant of good faith and fair dealing were erroneously dismissed; (3) a claim for deceptive trade practices is assignable; and (4) a claim for unfair claims practices is cognizable regardless of an affirmative finding of coverage under the policy.
PennyMac Corporation vs. Westcor Land Title Insurance Company
Docket No. 83737
Las Vegas – 2:00 p.m. – Full Court
Appeal from a dismissal on summary judgment of claim for breach of title insurance contract alleging Title Policy covered losses resulting from an HOA foreclosure sale. The issues on appeal are whether the district court erred when it: (1) construed the insurance policy in favor of Westcor by applying a sophisticated policy holder exception; (2) applied issue/claim preclusion from the underlying HOA litigation; (3) determined an HOA’s lien is not created until a delinquency occurs when recording the CC&Rs perfects the lien in advance of delinquency; (4) determined there was no coverage as a matter of law finding the Title Policy provides no coverage: (a) under Endorsement 100 despite language providing coverage against losses arising from the CC&Rs, (b) under Endorsement 115.2 despite language insuring against priority of an HOA’s lien, and (c) based on the language of Exclusion 3(d); (5) concluded that Westcor was prejudiced by lack of notice; (6) concluded that Westcor rejected PennyMac’s insurance claim in good faith; and (7) whether the district court abused its discretion by imposing discovery sanctions on PennyMac.