Bank of Idaho v. First American Title Insurance

EISMANN, Justice.

This is an appeal from a judgment dismissing an action seeking to recover under a title insurance policy that insured the failure of a developer to construct a fourplex on a specific lot. We vacate the judgment of the district court and remand for further proceedings that are consistent with this opinion.

I

Factual Background.

In January 2007, the Bank of Idaho made two construction loans to developers who planned to construct a fourplex on each of two adjoining lots in the city of Idaho Falls. The bank loaned $227,041.30 to construct a fourplex on Lot 1 and $226,737.80 to…