Hu Hyun Kim v. Lee

This is a discretionary review of a Court of Appeals’ decision which extended to Yakima Title & Escrow Company the first lienholder position of its insured, through the doctrine of equitable subrogation, over a prior perfected judgment creditor. We hold under the facts of this case that the title insurer should not avoid liability through the doctrine of equitable subrogation because the title insurer had actual knowledge of a prior judgment lien and failed to disclose such a lien to its insured before issuance of the title policy. The Court of Appeals’ decision is reversed, and the trial…