McDonald v. Title Ins. Co. of Oregon

Plaintiffs appeal from a judgment for the defendant Title Insurance Company. The trial court sustained the defendant’s demurrer to the first (negligence) and third (estoppel) counts of plaintiffs’ amended complaint. A second count, alleging fraud on the defendant’s part, was dismissed upon the plaintiffs’ own motion. We conclude that the complaint states a cause of action for negligence.

For purposes of this appeal, we accept as true the allegations of fact in the complaint. Plaintiffs are the buyers of a newly constructed home. Defendant is engaged in the business of selling title insurance…