The state Supreme Court is deciding if a title insurer can be held liable for a lawyer’s theft of a homebuyer’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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