The New Jersey Supreme Court is deciding if a title insurer can be held liable for a lawyer’s theft of a home buyer’s funds if it fails to tell the buyer directly it is not responsible for the lawyer’s misdeeds.

The case, Lawyers Funds for Client Protection v. Stewart Title Guaranty Co., A-44-09, argued Monday, is being closely watched by the title industry, which could become a deep pocket for fleeced clients if the appeals court ruling below is allowed to stand.

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