Security Title & Guaranty Co. v. MGIC Mortgage Corp.

Birdsong, Judge.

Insurance Contract. On March 15,1973, a Mr. and Mrs. Davis purchased a home from a Mr. Bearden. Charter Mortgage (Charter) issued a mortgage to the Davises in the amount of $22,000. A law firm here designated as WS&G handled the closing on the sale of the property. The same law firm conducted a title search for Charter and certified to Charter that the property was unencumbered. Security Title & Guaranty Company (Security) was the title insurer for Charter. In October, 1974, WS&G became aware of a prior security deed from Bearden to People’s Financial Corporation (People’s…