Community Trust Bank of Mississippi v. First National Bank of Clarksdale

KITCHENS, Justice,

for the Court:

¶ 1. First National Bank of Clarksdale (FNB) secured a loan of more than $800,000 with, inter alia, a deed of trust on real property in Oxford, Mississippi (the “Oxford property”), with the understanding that the bank would become the primary lien holder on the realty. FNB acquired title insurance from Mississippi Valley Title Insurance Company (“Mississippi Valley”), to insure itself against the ■ risk of an undiscovered superior lien holder. No formal title search on the property was performed, although Mississippi Valley’s agent did discover the existence of…