Forman v. Chicago Title Insurance

Opinion

JOHNSON, J .

In this case we hold the statute of limitations period on a title insurance policy is equitably tolled while the insurer determines *1000whether to honor or reject a timely filed insurance claim under that policy. Accordingly, we reverse a judgment based on a finding the statute of limitations had expired.

Facts and Proceedings Below

In 1987, appellant, John Forman, obtained a title insurance policy from respondent, Chicago Title Insurance Company (Chicago Title), in connection with his purchase of vacant land in the City of Bellflower. The face amount of the policy was $590,000.…