STEWART TITLE GUARANTY COMPANY SUES GREAT AMERICAN OVER FRAUD CLAIMS
Recently, Stewart Title Guaranty Co. sued Great American Insurance Co. in the federal Southern District of Texas, demanding coverage under a $15 million financial institution bond for claims stemming from alleged fraud by an agent of the title insurance company in real estate closings.
Stewart Title alleges that a former Great American agent executed forged closure documents, misappropriated of funds, and performed other improper conduct, which subjected Stewart Title to months of delay and unreasonable demands. Stewart Title requests declaratory relief that the losses suffered by Stewart Title as a result of at least 28 real property closings constitutes a protection by a $15,000,000 bond against losses resulting directly from dishonest or fraudulent acts committed by an agent and requests that Great American pay to Stewart Title its attorneys’ fees and other costs of suit incurred to obtain the declaration of coverage. Stewart Title also asserts a claim for breach of contract against Great American for its failure to acknowledge coverage for the loss suffered by Stewart Title, and failure to indemnify Stewart Title for such loss.