Southwest Title Insurance Co. v. Northland Building Corp.

REAVLEY, Justice.

This suit seeks either recovery under a mortgagee’s title insurance policy or recovery because of the violation of a condition to the closing and disbursement of the mortgagee’s funds. The trial court and Court of Civil Appeals have rendered judgment for the mortgagee. 542 S.W.2d 436. We hold that the mortgagee has shown a breach of the terms of the title insurance policy, but we sever and remand that claim because of the lack of proof of damages.

The problem emanated from a $55,000 loan made by Northland Building Corporation to Dai-Rich Investments, Inc. on Octo ber 15, 1971.…