Beneficial Mutual Savings Bank v. Stewart Title Guaranty Co.

MEMORANDUM

EDUARDO C. ROBRENO, District Judge.

Table of Contents

I. INTRODUCTION.539

II. BACKGROUND. 540

III. STANDARD OF REVIEW .543

IV. DISCUSSION....544

A. Applicable Law....544

B. Analysis ...545

1. Parties’ Burdens...545

2. Terms of Exclusion 3(a) ...546

3. Application of the Exclusion...547

4. Lender’s Objections to Applying the Exclusion...547

a. Lender’s Knowledge ...548

b. Lender’s Negligence...549

c. Lack of a Specific Exclusion...549

5. Exclusion 3(a) Warrants Denying Coverage of the Defect...549

V. CONCLUSION. .550

I. INTRODUCTION

The plaintiff in this action, Beneficial Mutual Savings Bank…