Chicago Title Insurance v. Eynard

Defendant transferred title to a piece of property to a corporation by quitclaim deed. The corporation placed a mortgage on the property to secure a loan by plaintiff’s insured. The title policy issued by plaintiff to the mortgagee did not except a Federal tax lien against defendant on the property of record prior to the transfer of the property by defendant to the corporation. As a consequence of this failure to except the lien from the title policy plaintiff was called upon by its insured to, and removed the tax lien, by paying the amount due the Federal Government. It now seeks…