Chanda v. Federal Home Loans Corp.

Opinion

McINTYRE, Acting P. J.

Private lenders sued a private mortgage broker for negligence and breach of fiduciary duty after it was discovered that a loan they had financed had been obtained through fraud and forgery. In this case, the trial court excluded evidence of title insurance procured by the private mortgage broker as part of the lending transaction to protect the lenders from fraud and forgery as barred by the collateral source rule and refused to instruct the jury on superseding cause. We conclude the trial court prejudicially abused its discretion in excluding this evidence…