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

562 A.2d 208 (1989)

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

New Jersey Supreme Court

562 A.2d 208 (1989)

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Facts

Walker Rogge, Inc. (plaintiff) purchased land from Kosa in 1979. Relying on a survey conducted in 1975, the parties understood the transaction to involve approximately 19 acres of land. The deed did not specify the acreage of the land transfer. Rogge purchased title insurance from Chelsea Title & Guaranty Company (defendant) (Chelsea). The policy issued by Chelsea insured the land against defects in title or liens, but included an exception for boundary line disputes. In 1985, Rogge, preparing to purchase an adjacent lot, ordered another survey of the land, which revealed that in fact the land only contained approximately 13 acres. Rogge sued Chelsea under the insurance policy for compensation for the smaller tract it owned, and for negligence. The trial court held that the policy covered the acreage dispute, and ordered that Chelsea compensate Rogge for the shortage of land. The trial court did not reach the question of whether Chelsea was liable to Rogge under a tort theory. Chelsea appealed.

Rule of Law

Issue

Holding and Reasoning (Pollock, J.)

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