Southwest Title Insurance Company v. Woods

WALKER, Justice.

This is a suit on an owner’s policy of title insurance. We hold that the insurance company is not, under the facts of the case, liable for damage done to the land by a trespasser under claim of right that would be valid and enforceable if the insured were not a bona fide purchaser for value.

J. Lloyd Woods, plaintiff, purchased a tract of 130.437 acres in Panola County from G. W. Massey. The transaction was consummated by delivery of the deed and payment of the purchase price on August 8, 1967. Southwest Title Insurance Company, defendant, issued an owner’s policy of title…