Court of Appeals Affirms Stewart Title's Limited Duties in Real Estate Closing Suit
IQ Holdings had sued the Stewart Title entities, alleging that a right of first refusal provision in the condominium regulations governing the purchase of a $3 million dollar condominium unit was not properly complied with in a closing performed by Stewart Title Company and that clear title to the unit did not pass. IQ Holdings alleged that the title company was negligent and breached its fiduciary duty in closing the purchase of the unit. IQ Holdings also claimed that a title insurance policy issued by Stewart Title Guaranty Company insured good and indefeasible title to the unit, but that the insurer failed to pay IQ Holdings’ claims and misrepresented what was covered.
The Court of Appeals affirmed the summary judgment Jackson Walker won in the trial court. The Court of Appeals agreed with Jackson Walker’s argument that the condominium regulations were excepted from coverage and that the title company did not owe the negligence and fiduciary duties that IQ Holdings alleged.
The case is IQ Holdings, Inc. v. Stewart Title Guar. Co., ___ S.W.3d ___, 2014 Tex. App. LEXIS 12571 (Tex. App. – Houston [1st Dist.] Nov. 20, 2014, n.p.h.). The Stewart Title parties were represented by Jackson Walker partners John Koepke and Scott McElhaney. Jackson Walker has a long history of providing exceptional service to Stewart Title, having represented the company in various matters for more than 20 years, and is appreciative of the opportunity to assist its client in achieving this latest success.