Fidelity National Title v. Brian Kyle
Published: Oct. 24, 1998 | Result Date: Sep. 16, 1998 | Filing Date: Jan. 1, 1900 |Case number: 784021 Bench Verdict – $0
Facts
In 1982, defendant Brian Kyle and his partner William Schuveiller entered into a lease of their property, which they jointly owned, to Paul Hennessey, who ran a tavern. Included in that lease was a right of first refusal, to which all parties agreed. Some years later, Kyle sought to buy out Schuveiller's 50 percent interest. A dispute arose regarding the first refusal language and Schuveiller demanded that, as part of any purchase by Kyle, he be indemnified from any action by Hennessey regarding the lease. Kyle so agreed. As the sale progressed, Hennessey apparently filed a lawsuit two days before close of escrow, and Fidelity National Title missed it when it issued it's policy on March 27, 1998. When Kyle later tendered defense of the Hennessey action to Fidelity National, tender was rejected on the grounds that this constituted a title risk "created, allowed or agreed to by you," and "that are known to you, but not to us, on the Policy Date - unless they appeared in the public records." Fidelity National brought an action against Kyle for declaratory relief and rescission, and Kyle filed a bad faith denial cross-complaint, and requested a jury trial. Kyle thereafter successfully litigated the Hennessey action. At trial, the court bifurcated the case on the coverage and duty to defend issues and held a court trial.
Settlement Discussions
The plaintiff made a C.C.P. º998 settlement demand for $____________. The defendant made a C.C.P. º998 offer of compromise for $____________.
Damages
The defendant/cross-complainant claimed $200,000
Other Information
The verdict was reached approximately one year after the case was filed. The court found no possibility of coverage and no duty to defend, and dismissed the cross-complaint.
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