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Breach of Contract
Insurance Bad Faith
Title Insurance

Penlon Properties, Ltd. v. Ticor Title Insurance Company of California, et al.

Published: Sep. 3, 1994 | Result Date: Aug. 12, 1994 | Filing Date: Jan. 1, 1900 |

Case number: BC057215 –  $0

Court

L.A. Superior Central


Attorneys

Plaintiff

Gary R. Clouse

James B. Isaacs Jr.


Defendant

Robert J. Bryan

Keith Turner


Experts

Plaintiff

John Hetland
(technical)

Robert Barton
(McDermott Will & Emery) (technical)

Robert E. Sims
(Latham & Watkins LLP) (technical)

J. Ronald Bean
(technical)

Defendant

Lee Bardellini
(technical)

Timothy Lowe
(technical)

John F. Cavin
(technical)

Larry Telford
(technical)

Facts

In 1989, Plaintiff Penlon Properties, a limited partnership, was issued a title insurance policy by Defendant Ticor Title Insurance Company of California for an option that it held to purchase 12 acres of unimproved land in Santa Clarita. In 1990, Southern Pacific Railroad began to realign its tracks over an adjacent strip of land that it purchased from Penlon's predecessor in 1963. This effectively landlocked Penlon's property. In the underlying action, Penlon tendered a claim to Ticor Title and also filed a lawsuit against Southern Pacific. Ticor Title allegedly provided Penlon with an attorney to represent it on portions of the underlying case. Plaintiff eventually settled the underlying suit against Southern Pacific. As a result of that settlement, Penlon relinquished its right to have Southern Pacific pay for the actual design, engineering, and construction of 2 private road crossings to access Penlon's property, as set forth in a grant deed referenced in the Ticor policy. Penlon then brought this instant lawsuit against Ticor Title for breach of the title policy and the implied covenant of good faith and fair dealing.

Settlement Discussions

Defendant contends that it made no offers and Plaintiff demanded $4,880,000. Plaintiff contends that it demanded $1,850,000 and Defendant offered $82,135 in return for dismissing its cross-complaint for rescission.

Damages

Plaintiff contends that it asked the jury to award $3,800,000 in compensatory damages and $800,000 in attorney fees and costs for prosecuting both the underlying and instant actions. Defendant contends that Plaintiff asked the jury to award $4,000,000 for the costs of constructing 2 grade separated railroad crossings (underpasses) and $880,000 in attorney fees and costs for prosecuting both the underlying and instant actions. Defendant further contends that Plaintiff additionally sought punitive damages for bad faith breach of title policy.

Deliberation

1.5 hours

Poll

11-1

Length

31.5 days


#120177

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