Breach of Contract

Maria Armas v. Freemont Investment and Loan, Kenneth J. Perroge, and FidelityNational Title Insurance, Bristol Superior Court 2007-01790. Philip A. Brown the developer/seller, (“Seller/Developer’) built and sold to the Plaintiff the Property located at 206B Tremont Street, Taunton, Massachusetts (“Property”).  At closing, the closing attorney, accepted a fax/copy of an alleged Certificate of Occupancy for the Property from the Seller/Developer. The Town of Taunton subsequently notified the parties that the Certificate of Occupancy never properly issued and the Certificate of Occupancy presented at the closing was a forgery.  Fidelity National Title Insurance issued and Armas (“Plaintiff”) purchased an Owner’s Title Insurance Policy for the purchase of the Property. The Plaintiff never obtained a Certificate of Occupancy and the mortgage on the Property was subsequently foreclosed. The Plaintiff brought an action against Fidelity seeking damages under a breach of contract theory because Fidelity failed to pay out under the title insurance policy. The amount in controversy was the purchase price of the home lost at foreclosure, plus other damages to be determined at trial. The Plaintiff also claimed that Fidelity’s agent was negligent in failing to offer the Plaintiff an enhanced title insurance policy. G & P moved for summary judgment that was allowed in favor of Fidelity.

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