Big win for IM client First American and the title industry! The First Court of Appeals just issued a big opinion in First American’s favor relating to the loss provisions of the loan policy in question and denying the bad faith claims made against it. IM represented First American at the trial court level and in connection with its handling of the claim; we were joined by appellate counsel on appeal.
In First American v. Patriot Bank, the trial court ruled in Patriot Bank’s favor on its claims under the loan policy and in First American’s favor on Patriot Bank’s bad faith claims. The First Court of Appeals soundly reversed the trial court’s ruling in Patriot Bank’s favor under the loss provisions of the loan policy and affirmed the summary judgment in First American’s favor disposing of Patriot Bank’s bad faith claims. In the course of doing so, the First Court of Appeals essentially adopted IM’s arguments on both points and provided a helpful description of the controlling standards and a roadmap for future handling of similar claims.
