Lawyers Title Insurance Company hired lawyer David Groff as Lawyers Title’s settlement agent and attorney for the lender in a real estate transaction involving property in Londonderry, New Hampshire. Prior to closing the real estate sale, Groff retained a title abstractor to conduct a title search and prepare an abstractor’s report. Because the title abstractor negligently failed to find and disclose a construction mortgage on the property, Groff issued title insurance policies to both the lender and the buyers without excepting the mortgage. As a result, the construction mortgage was not discharged prior to the sale. The mortgagee asserted its rights and threatened to foreclose on the property until Lawyers Title paid the mortgagee $152,000. On what grounds did Lawyers Title seek to recover a portion of its loss from Groff?

Answer rating: 100% (QA)

Groff failed to fulfill his duties as he has to find and dis... View the full answer