Marsh v. Commonwealth Land Title Insurance

Commonwealth Land Title Insurance Company appeals from a judgment in favor of Harold and Violet Marsh for $288,773.14. Commonwealth, as escrow agent, recorded a deed of trust containing an incorrect legal description. Commonwealth corrected the legal description and rerecorded the deed of trust within 90 days of the Marshes filing for bankruptcy. The deed of trust was security for a major loan to the Marshes. The recording and rerecording created the possibility the rerecording could be avoided as a preference in bankruptcy. This would result in the property in question becoming an asset in…