Ezring v. Loduca
Justice Sidney F. Strauss
Ezring alleged it paid First American's title agent a mortgage insurance premium to obtain a policy in connection with a loan Ezring entered into with Loduca. After the closing, Ezring argued First American failed to issue the title insurance policy in breach of contract. He also argued he should have been insured as the holder of a first mortgage against the premises. Loduca moved for dismissal. The court ruled that no contract for Ezring as first lienor could have existed as his application remained condition upon the satisfaction of the prior loans against the premises. It noted the issuance of a clean policy merely confirmed the obligations and exceptions acknowledged by the title company. The court ruled Ezring was bound by the information in the title search delivered to his attorney at the time of the transaction, stating a principal was bound by notice to his agent. It concluded Loduca dispositively resolved any question of whether Ezring could have properly considered himself the holder of a first mortgage in the event of a closing, and if a policy could have been issued indicating Ezring as first lienor. Thus, the breach of contract claim was dismissed.