Welch Foods, Inc. v. Chicago Title Insurance Company

17 S.W.3d 467 (2000)

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Nature of the Case

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Facts

D conveyed a parcel of land to Vail and Rita Paschal, husband, and wife, and to William T. and Carolyn Coleman, husband and wife. P issued title insurance to the Paschals and the Colemans. On December 13, 1997, the Colemans conveyed their interest in the property to the Paschals. In early 1997, the Paschals discovered that a twenty-foot strip along the west side of the property actually belonged to Southwestern Electric Power Company (SWEPCO). The strip comprised a roadway and access from an adjoining street. The Paschals then made a claim against their title insurance policy to P and P paid the Paschals $23,500 for the partial failure of title pursuant to the terms of the title insurance policy. Pursuant to paragraph 13 of the title policy, P was subrogated to the rights of the Paschals in their claims against D. P then brought suit against D, asserting D had breached their warranty of title to the Paschals. P filed a motion for summary judgment asserting it was the subrogee and rightful party to bring suit against D. P offered the policy of title insurance, the warranty deed showing the conveyance of the twenty-foot strip to SWEPCO in 1930, the appraisal showing diminished value, and an affidavit of Jeanine C. Ames of P, containing a summary of the facts. D asserted that P's suit was barred based on principles of equity. The trial court found the undisputed facts showed D breached its warranty of title, and that damage to the title was $23,500 on February 11, 1999. The court awarded $23,500 in damages, $125 in costs, and $5900 in attorney's fees. It granted P's motion for summary judgment and denied D's. D appealed.