First American Title Insurance v. Seaboard Savings and Loan Ass'n

This is an insurance contract dispute. In 1979, James W. Wright contacted Seaboard Savings and Loan Association in an effort to secure a $60,000.00 construction loan. Wright was represented by Jay H. Zimmerman, an attorney who had represented him in previous loan transactions involving Seaboard. Seaboard approved the loan subject to the requirements, set forth in its closing instructions, that Seaboard would have a first deed of trust on the property and that the borrower would secure title insurance for Seaboard’s benefit. Zimmerman, who had knowledge of Seaboard’s closing instructions,…