SOUTHERN TITLE GUARANTY COMPANY v. Prendergast

TUNKS, Chief Justice.

On February 17, 1964, the appellant, Southern Title Guaranty Company, Inc. issued to appellees, Vincent Prendergast and wife, Leola Prendergast, a policy of title insurance covering a 22 acre tract of land the Prendergasts had just bought. In July of 1965 when the Prendergasts undertook to sell the property to another person another title guaranty company refused to issue a title policy because of an outstanding undivided 10% interest in one Theresa Krug Matlage. The Prendergasts thereupon filed suit against appellants on the title policy. The first trial of this case…