Last Wednesday, the United States District Court for the District of Maryland decided Cornerstone Title & Escrow, Inc. v. Evanston Insurance Co.
This case dealt with an insurance dispute between Cornerstone Title, a title and closing company, and Evanston Insurance. Title companies always seem to be getting themselves into trouble.
In this case, Plaintiff purchased an insurance policy from Defendant obligating Defendant to indemnify Plaintiff for all damages, which was defined as “the monetary portion of any judgment, award or settlement . . . not [to] include . . . (b) the restitution of consideration or expenses paid to the insured for services or goods.” The policy also contained several exclusions from coverage, which included claims “based upon or arising out of any dishonest, deliberately fraudulent, malicious, willful or knowingly wrongful act or omission committed by or at the direction of the Insured . . . [or] based upon or arising out of the Insured gaining any profit or advantage to which the Insured is not legally entitled.” Take a breath and digest that for a second.