MAY 2015 BAD FAITH CASES: ALL OF INSURED’S CLAIMS AGAINST TITLE INSURER BARRED BY CONTRACTUAL LIMITATIONS PERIOD (Philadelphia Commerce Court)
In Oak Mortgage Co., LLC v. Fidelity National Title Insurance Company, the insured brought claims for declaratory relief, breach of contract, and bad faith against its title insurer. The title insurer had issued a Closing Service Letter (CSL) which provided, in part, a one year contractual limitation period for the insured to bring any claims against the title insurer. The one year period started to run on the property closing date. The claims at issue, however, were brought nearly three years after closing. Because the discovery rule does not toll contractually agreed to limitation periods for bringing suit, summary judgment was granted to the title insurer.
