Justia Contracts Opinion Summaries

Plaintiff Darlene Gray appealed an order of the Superior Court that dismissed her complaint against Defendant Commonwealth Land Title Insurance Company. In 2003, Plaintiff and her sister, in their capacity as trustees of the Ocean Estates Realty Trust, received a quitclaim deed from the Triple P Ranch Realty Trust. Ocean Estates paid $80,000 for the parcel and recorded the deed. Later that year, Ocean Estates conveyed a warranty deed for the land to Plaintiff. At the time she received the deed, Plaintiff obtained a construction loan, granted a mortgage, and purchased title insurance from Commonwealth. The title insurance provided $328,000 in coverage against a title defect. In 2006, Plaintiff learned that Triple P Ranch Realty Trust never acquired title to the property and that the State legally owned it. The land was appraised at $15,000, and the insurer paid the mortgage lender the amount of the appraisal. Plaintiff sued Commonwealth for breach of contract, arguing that Commonwealth's policy should reimburse her for all expenses she incurred prior to learning of the title defect. When the Superior Court denied Plaintiff's motion for reconsideration, she appealed to the Supreme Court. The Court found that trial court properly determined the measure of damages for Plaintiff's claim. Without finding errors in the trial court's findings of fact, the Supreme Court affirmed the trial court's decision dismissing Plaintiff's complaint.