Submitted January 9, 2014.
Appeal fro the Superior Court of the District of Columbia. (CAB-454-12). (Hon. Anthony C. Epstein, Trial Judge).
Griffin Vann Canada, Jr., and Bradford S. Bernstein, Miles & Stockbridge P.C., were on the brief, for appellee.
Before BLACKBURNE-RIGSBY and MCLEESE, Associate Judges, and NEBEKER, Senior Judge.
Blackburne-Rigsby, Associate Judge :
Appellant Matthew Fogg seeks review of an order granting summary judgment to appellee Fidelity National Title Insurance Company (" Fidelity" ). Fogg specifically challenges the trial court's order on the basis that the trial court erred in: (1) determining that Fidelity had no duty to defend Fogg in a third-party lawsuit pursuant to the " eight corners rule" ; and (2) failing to conclude that Fidelity owed a fiduciary duty of disclosure to Fogg. We affirm.
In 2008, Matthew Fogg loaned Newbirth Investment & Development Company (" Newbirth" ) $700,000 for the purchase of a commercial property located at 2914 Sherman Avenue, N.W. (" the property" ). The loan was secured by the property and was to be repaid in two installments, the first of which was due on March 1, 2009. Newbirth purchased the property from Sherman Avenue Management Corporation (" SAMC" ) on October 31, 2008. Worldwide Settlements (" Worldwide" ) acted as the settlement agent for that transaction and provided Newbirth with title insurance from Fidelity.
Newbirth later defaulted on the loan from Fogg. Rather than institute foreclosure proceedings against Newbirth, Fogg agreed to purchase the property outright in consideration for the sum of $225,000 and cancellation of Newbirth's debt. Milestone Title (" Milestone" ) acted as the settlement agent for this second sale. As part of its services, Milestone performed a title examination, finding that Fogg had the only lien of record against the property. Additionally, at the settlement on April 8, 2009, Fogg purchased title insurance from Fidelity, through its agent Milestone,
in the face amount of $225,000 and paid a premium of $1,282.50.
On June 18, 2009, SAMC filed suit against multiple defendants, including Fogg, in the Superior Court of the District of Columbia. SAMC alleged that it had made a $200,000 loan to Newbirth that was now in default and sought to have an equitable lien imposed on the property because the deed of trust that was supposed to secure SAMC's loan was never recorded. The complaint alleged that " [w]hen taking title to the Property, Fogg was aware of [SAMC's] loan to Defendant Newbirth and [SAMC's] claim of a security interest in the Property, and . . . Fogg is therefore not a bona fide purchaser for value and without notice of [SAMC's] claim."
Fogg requested that Fidelity defend him in the SAMC lawsuit. Fidelity refused to defend Fogg in the SAMC suit because it determined such a defense was not covered by Fogg's title insurance policy. Fidelity contends that its denial of coverage is supported by paragraph 5(a) of the conditions to the policy and paragraphs 3(a) and ...