Lawyers Title Insurance v. First Federal Savings Bank & Trust

MEMORANDUM AND ORDER

COHN, District Judge.

I. INTRODUCTION

This is an action for declaratory judgment as to an insurers’ liability on a policy of mortgage title insurance. Plaintiff Lawyers Title Insurance Corporation (Lawyers Title) issued a policy of mortgage title insurance (the policy) on a mortgage taken by defendant First Federal Savings Bank & Trust (First Federal). Several months after the policy was issued, First Federal received notice that its mortgagor never actually had title to the property and the title documents were, in fact, forged. First Federal demanded that Lawyers Title…