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ALR Oglethorpe LLC v. Henderson

The doctrine of collateral estoppel barred the plaintiffs' suit alleging professional negligence in preparing a title examination and title abstract for certain real property.

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This suit arose after ALR Oglethorpe, LLC, bought two parcels of land and then discovered after the closing that one of the parcels was still burdened by a recorded access easement. ALR and five individuals who had invested in related limited liability companies1 collectively, ALR sued C. Gerald Henderson, Title Resources Corp. – Savannah, and Title Resources Corporation collectively, Henderson for professional negligence in preparing the title examination and abstract. The trial court granted Henderson’s motion to dismiss, finding that the statute of limitation had run before suit was filed and also finding that the suit was barred by the doctrine of res judicata. ALR appeals, and because we agree that the suit was barred by the doctrine of collateral estoppel, we affirm.

The parties do not dispute the underlying facts pertinent to this appeal. ALR retained the law firm Coleman Talley LLP to perform a title search on two contiguous tracts of land along the south bank of the Savannah River for a development project known as the Savannah River Landing. Coleman Talley asked Fidelity National Insurance Company to prepare a title commitment for the properties, and Fidelity hired an attorney, R. E. Hodges, to prepare a title abstract. Hodges then hired Henderson, whose abstract revealed the existence of an access easement across one of the tracts but failed to identify all of the parties benefitted by the easement across the tract.

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