New York Federal Court Grants Insured’s Motion To Amend Complaint

The United States District Court for the Southern District of New York recently granted the plaintiff-insured’s motion for leave to amend its complaint and to add its affiliate as a new co-plaintiff over the title insurance companies’ objections.  See Morris Builders, L.P. v. Fidelity National Title Insurance Co. et. al., 2017 WL 5032996 (S.D.N.Y. 2017).  In 1989, the defendant title insurance companies issued title insurance policies to plaintiff to cover plaintiff’s long-term development lease of a property.

New Jersey Appellate Division Holds Entire Controversy Doctrine Bars Law Division Action Regarding Loan Modification After Claim Was Abandoned in Foreclosure Action

In a decision approved for publication, New Jersey’s Appellate Division recently affirmed that a defendant in a foreclosure action was barred from pursuing a separate action against the lender for fraud by foreclosure under New Jersey’s entire controversy doctrine as well as the principles of res judicata and collateral estoppel. See Adelman v. BSI Fin. Servs., Inc., 2018 WL 636756 (N.J. Super. Ct. App. Div. Jan. 31, 2018). 

Tenth Circuit Holds FDCPA Does Not Apply to Non-Judicial Foreclosures

The United States Court of Appeals for the Tenth Circuit recently joined the Ninth Circuit and affirmed a district court’s holding that the Fair Debt Collection Practices Act (“FDCPA”) does not apply to a non-judicial foreclosure.  See Obduskey v. Wells Fargo, 2018 WL 477257 (10th Cir. Jan. 19, 2018).  In the case, plaintiff defaulted on his loan, and defendant law firm sent a letter to plaintiff stating that it “MAY BE CONSIDERED A DEBT COLLECTOR ATTEMPTING TO COLLECT A DEBT” and that it was “instructed to commence foreclosure against” plaintiff’s property.

New Jersey Amends Its Requirement for the Recognition of Foreign Judgments

On his last day in office, Governor Christie enacted new legislation that will change the way foreign-country judgments are recognized in New Jersey. The Foreign Country Money-Judgments Recognition Act of 2015 (the “FCMJRA”) amends the statutory basis for enforcing judgments of other nations in New Jersey. Under the prior version of the FCMJRA, a copy of any authenticated foreign judgment could be filed in the office of the clerk along with an affidavit from the judgment creditor, and the clerk would be required to “treat the foreign judgment in the same manner as a judgment of the Superior Court of this State.” 

​Oklahoma Federal Court Holds Restrictive Covenants on Property Did Not Render It Unmarketable but May Be Covered Encumbrances Under the Title Policy

The United States District Court for the Western District of Oklahoma recently held that use restrictions on a property did not render the property unmarketable, but nonetheless may be encumbrances that the title insurance policy at issue insured against.  See Chesapeake Land Dev. Co. LLC v. Chicago Title Ins. Co., 2017 WL 5930295 (W.D. Okla. Nov. 30, 2017). 

Ninth Circuit Holds That Loan Servicer Did Not Establish Diversity Jurisdiction in Borrowers’ Action to Temporarily Enjoin Foreclosure Because Amount in Controversy Did Not Exceed $75,000

The United States Court of Appeals for the Ninth Circuit recently reversed a district court’s decision and held that the amount in controversy in a borrowers’ action to temporarily stay a foreclosure during the pendency of the borrowers’ loan modification application did not exceed $75,000 and accordingly, that diversity jurisdiction did not exist.

Utah Federal Court Holds That Title Insurance Company Was Not Required to Tender Payment to Its Insured Within 30 Days of Accepting a Claim

The United States District Court for the District of Utah recently granted a title insurance company’s motion for summary judgment in part, holding it was not required to tender a payment within 30 days of accepting its insured’s claim, and denied the motion in part because there were issues of fact as to the proper date of loss under an owner’s policy.