Facts

Rio Mesa Holdings LLC sued Fidelity National Title Insurance Co., involving an insurance dispute.

PLAINTIFF'S CONTENTIONS:
Plaintiff purchased the subject real property in 2004, and obtained a title insurance from defendant. In 2006, a lawsuit was filed against plaintiff regarding access to a roadway. Plaintiff tendered the claim to defendant, which provided a defense. Defendant's counsel allegedly had an undisclosed conflict of interest. The underlying lawsuit was ultimately decided against plaintiff. As such, plaintiff demanded defendant to pay the policy benefits, which defendant neither paid nor denied. Defendant instead reserved its rights and investigated the claim. As a result, plaintiff was unable to fully develop the property, which resulted in depreciation of the property's value. Plaintiff then sued defendant for breach of contract, breach of the implied covenant of good faith and fair dealing, and bad faith in denying the claim.

DEFENDANT'S CONTENTIONS:
Defendant contended that based on court rulings in the underlying litigation, it fulfilled its policy obligation. In addition, defendant purchased for plaintiff an alternative access easement that provided the same access to plaintiff's property that existed at the time plaintiff purchased the property.

Settlement Discussions

According to plaintiff, final settlement discussions were Rio Mesa demanded $22 million in settlement and Fidelity countered with $1 million and waiver of Buss fees of $3 million. According to defense, plaintiff demanded $38 million in settlement, which defendant declined. Defendant purchased for plaintiff an alternative access easement to the portion of plaintiff's property at issue, which plaintiff declined.

Damages

Rio Mesa claimed its property depreciated more than $25 million in value. Defendant claimed plaintiff's title was as insured and disputed plaintiff's calculations.

Result

The jury found in favor of Rio Mesa and awarded the $25 million policy limits and found bad faith resulting in an award of Brandt fees.