Walker Rogge, Inc. v. Chelsea Title & Guaranty Co.

116 N.J. 517, 562 A.2d 208 (1989)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

Walter Rogge, Inc. (P) purchased land from Kosa after seeing a survey describing the parcel as containing 18.33 acres. Kosa had acquired the property from Aiello. Kosa showed P a survey done by Price Walker. That survey indicated the tract had 18.33 acres. The contract between the parties described the land as '19 acres more or less' and referenced the Price Walker survey. The contract called for a price of $363,000 which was to be adjusted on the basis of $16,000 per acre for deviations from the amount of 19 acres. P contracted with Chelsea Title & Guaranty Co. (D) to do a title policy, but not a title search. D had issued two prior policies on this property. On one of them, a deed from Aiello to Kosa described the property as consisting of 12.486 acres, based on a survey by Schilling. A copy of that deed was in D’s files. The deed between Kosa and P described the property in accordance with a 1975 Price Walker survey, but the deed never described the acreage of the property. D's title commitment described the property by reference to the 1975 survey, but it never actually indicated the acreage. The policy between P and D had an exception denying coverage for '....other matters which could be disclosed by an accurate survey and inspection of the premises.' P later obtained a survey and discovered that the acreage was 12.43 acres, not 18.33 acres. P sued D for the difference in acreage, and also charged D with negligence. The trial court found that the difference in acreage represented a defect in title, and awarded damages to P and that the title was unmarketable. It also found that since P did not contract for a title search, and thus D was not negligent. Damages of $88,000 were awarded (5.5 x $16,000). The appeals court affirmed but remanded for clarification of damages. D appealed.