Baumann v. Puget Sound Title Insurance Co.

On December 4th, 1930, plaintiffs loaned one thousand dollars to one Aust, who, on the same day, executed and delivered to them his promissory note, secured by a mortgage on real property in Lewis county. The mortgage contained a covenant that the property was “free from all incumbrances.” Under the same date, the defendant issued a title insurance policy by which it insured plaintiffs against loss or damage, not exceeding one thousand dollars, by reason of any. incumbrance on the property impairing the security of their mortgage, except as “noted in annexed Schedule B.” At that time, there…