Appellate Division Affirms Summary Judgment in Litigation over Title Agent Theft of Escrow Funds

Secured a victory in the Appellate Division, First Department, which unanimously affirmed the trial court’s granting of summary judgment dismissing all claims against a title insurance company.  Plaintiff sought to hold the insurer responsible for its title agent’s theft of escrow funds at a closing on the sale of a New York City building.  In a decision of potentially significant import to the title insurance industry, the Appellate Division held that a title insurance underwriter cannot be held responsible for the escrow functions of its limited agent when the escrows are unrelated to the clearance of a defect in title.