Stewart Title Guaranty Co. v. Park

BETTY B. FLETCHER, Circuit Judge:

We decide an issue of first impression: Whether, under California Business and Professions Code § 10471(a), a title insurance company that satisfied its obligations to its insured following embezzlement by a mortgage broker is entitled to payment from the State of California Department of Real Estate Recovery Account to recover a portion of an unsatisfied judgment against the embezzling brokers. We hold that it is not.

Appellant, Stewart Title, is a title insurance company that insures the condition of real estate title for lenders, property owners, and…