White v. Western Title Insurance Co.
Supreme Court of California
710 P.2d 309 (1985)
White (plaintiff) hired Western Title Insurance (defendant) to prepare a preliminary title report for property White was interested in purchasing. The title report did not reveal a recorded easement granting River Estates Mutual Water Company the right to construct a water pipeline and drill wells upon the property. Based upon the title report, White purchased the property and paid for two title insurance policies issued by Western Title Insurance. Six months after closing, the water company notified White that it intended to exercise its easement rights. White objected and the water company filed suit to enforce its easement rights. The water company ultimately chose not to pursue the easement and dismissed its lawsuit. White hired an appraiser to determine the depreciation in property value resulting from the prospective loss of groundwater. White demanded that Western Title Insurance pay more than $62,000 in compensation. Western Title Insurance refused to pay the claim. White filed suit alleging breach of the insurance contract and negligence in preparing the preliminary title report. Western Title Insurance hired an appraiser who valued White’s claim at $2,000. Western Title Insurance made two offers to settle the claim, which White rejected. White amended his complaint to incorporate claims based upon breach of the implied covenant of good faith and fair dealing. The trial court held separate trials on the issues of liability and damages. The trial court found Western Title Insurance liable for breach of contract and negligence. The remaining issues proceeded to jury trial. The jury awarded White $8,400 for loss of property value and compensatory damages of $20,000 for breach of the covenant of good faith and fair dealing. Western Title Insurance appealed and petitioned the supreme court for review of particular questions of law.
Rule of Law
Holding and Reasoning (Broussard, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 725,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 725,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 45,700 briefs, keyed to 983 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.