K. E. BLESSING AND HELEN B. BLESSING, HIS WIFE, APPELLANTS,
v.
AMERICAN TITLE AND INSURANCE COMPANY, A FLORIDA CORPORATION, APPELLEE
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Homeowners sought recovery under a title insurance policy for expenses paid to satisfy an outstanding judgment on their property. The court affirmed dismissal of their complaint, holding that a title insurance policy limiting coverage to actual loss does not cover voluntary satisfaction of a judgment that constitutes a cloud on title, absent execution against the property.
The court held that the insured is protected only when execution of the judgment is sought against the property covered, and that voluntary satisfaction of a judgment is not an actual loss sustained within the meaning of a policy limiting coverage to actual loss.
“the insured is protected only when execution of the judgment is sought against the property covered”
Establishes the standard for when title insurance coverage is triggered under a policy limiting coverage to actual loss
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Join FLexlaw to unlock all legal intelligenceK.E. Blessing and Helen B. Blessing obtained title insurance on their real property with American Title and Insurance Company. The policy, dated March…
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The appellants filed their amended complaint in the Civil Court of Record for Duval County seeking recovery under a policy of title insurance for certain expenses incurred by them in satisfying an outstanding judgment which constituted an encumbrance on the insured property. This amended complaint was dismissed with prejudice by the court, because of their failure to allege in the original and the amended complaints any loss or damage within the terms of the policy provisions. The court also ordered that, if the appellants did not within ten days from the date of the order file and serve a motion for leave to file a second amended complaint, tendering therewith such a complaint stating a cause of action on the policy, the cause should stand dismissed. Instead of so *456amending, the appellants appealed from the order.
There are two types of title insurance policies currently in general use in Florida. One purports to insure the marketability of the insured’s title; the other insures only against actual loss sustained by the insured because of a defect or imperfection in his title. The policy before us belongs to this second category.
The pertinent provisions of this policy provide:
“This Policy of Title Insurance Wit-nesseth, That American Title and Insurance Company, herein called the Company, in consideration of the payment of the premium for this Policy, does hereby covenant and agree that it will pay to K. E. Blessing and Helen B. Blessing, his wife, hereinafter called the Insured, the heirs, devisees, or personal representatives of the Insured all loss or damage not exceeding Eighteen Thousand, Five Hundred ($18,500.00) and No/100 Dollars, which they, or any of them, shall sustain by reason of any defect or defects in the title of the Insured to the estate or interest of the Insured in the real estate described under Schedule A, hereto annexed, or by reason of liens or encumbrances against the same as of the date of the final examination of the title thereto, to-wit: March 28, 1957 *
The insurer’s liability under a contract of title insurance is, of course, dependent upon the terms of the contract. Where, as here, the contract limits coverage to actual loss or damage sustained, the courts are powerless to extend the coverage to insure marketability of title. Nor can we hold that a voluntary satisfaction by the insureds of a judgment which constitutes a cloud on their title, is an actual loss sustained by them within the meaning of this policy so as to entitle them to indemnification. The general weight of authority is that the insured is protected only when execution of the judgment is sought against the property covered. 45 C.J.S. Insurance § 967.
For the above reasons the judgment appealed from must be and is affirmed.
WIGGINTON, C. J., and STURGIS, J., concur.
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Holinda v. Title & Tr. Co. OF Fla., 438 So. 2d 56 (Fla. 5th DCA 1983)…utstanding judgment which is a valid, enforceable lien on the real property does not constitute a “voluntary satisfaction.” See Endruschat v. American Title Ins. Co., 377 So. 2d 738 (Fla. 4th DCA 1979). But see Blessing v. American Title & Ins. Co., 121 So. 2d 455 (Fla. 1st DCA 1960). As shown here, the satisfaction of such claims was necessary in order to complete the sale of the property. Title and Trust further argues that even if the payments were not voluntary, the Holindas’ failure to obtain its writte…
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Endruschat v. Am. Title Ins. Co., 377 So. 2d 738 (Fla. 4th DCA 1979)…eys’ fees and costs. The question of the dentists’ damages was never resolved, the trial judge reluctantly concluding, as a matter of law, that the Title Company had no liability based on the holding in Blessing v. American Title and Insurance Co., 121 So. 2d 455 (Fla. 1st DCA 1960). As to the Bank, the trial judge later ruled that the suit which it was perforce involved in, was one contemplated by the contract provision of the mortgagee policy obligating the Title Company “at its own costs and without delay…
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Mazel v. Am. Title & Ins. Co., 127 So. 2d 905 (Fla. 3d DCA 1961)…PER CURIAM. Affirmed. See Blessing v. American Title & Insurance Co., Fla.App.1960, 121 So. 2d 455. HORTON, C. J., CARROLL, CHAS., J., and LOPEZ, AQUILINO, Jr., Associate Judge, concur.…
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