BB Syndication Services, Inc. v. First American Title Co.

Dist. Ct. did not err in granting defendant-title insurance company’s motion for summary judgment in action by plaintiff-insured seeking indemnity for insured’s payments of contractors’ liens on failed commercial development, where liens were generated after insured-lender on said development refused to lend developer additional loan proceeds because development had become “out of balance” due to certain cost overruns. Terms of relevant title insurance policy did not generally protect liens that arose after issuance of policy, and provision in instant policy that excluded coverage for liens that are “created or suffered” by plaintiff applied, where instant liens arose from insufficient project funds, which was risk of loss that plaintiff-lender, as opposed to defendant, had authority and responsibility to discover, monitor and prevent.