Transamerica Title Insurance Co. v. Johnson

103 Wn.2d 409, 633 P.2d 697 (1985)

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Nature of the Case

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Facts

A development corporation (D) bought vacant lots to build houses. At the time D bought the lots, preliminary sewer assessments had been made and were disclosed in title insurance policies issued by another title insurance company. D listed the land for sale a short time after purchase. Initially, the purchase agreement stated that the buyer was to assume the sewer assessments; the requirement was later deleted from the listing agreement. The earnest money agreements and the warranty deeds by which the property was conveyed did not mention the assessments. By the time Transamerica (P) issued its 'preliminary commitment for title insurance' for each of the parcels the assessments had become final and were liens on the parcels. P's preliminary commitment and final title insurance policy did not disclose the assessments. P paid the assessments and sued D under its subrogation rights. The trial court granted summary judgment to P and D appealed. The Court of Appeals affirmed. D sought further review.