Welch Foods, Inc. v. Chicago Title Insurance Co.
Arkansas Supreme Court
341 Ark. 515, 17 S.W.3d 467 (2000)
Welch Foods, Inc. (Welch) (defendant) owned land in an industrial location. In July 1995, Welch sold the land to two married couples: the Colemans and the Paschals. About two weeks after the sale, the Colemans and the Paschals obtained title insurance on the land from Chicago Title Insurance Co. (Chicago Title) (plaintiff). The title insurance contract granted subrogation rights to Chicago Title. A year and a half later, the Paschals learned that a power company owned a 20-foot strip of the land. The Colemans conveyed their interest in the land to the Paschals, and the Paschals submitted a title insurance claim to Chicago Title. Chicago Title paid the title insurance claim to the Paschals. Chicago Title then sued Welch, alleging a breach-of-warranty claim. Both parties filed summary-judgment motions. The trial court granted summary judgment in favor of Chicago Title. Welch appealed.
Rule of Law
Holding and Reasoning (Smith, J.)
Dissent (Corbin, J.)
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