Chicago Title Insurance sued by Galveston County property owners

Real property owners are suing alleging breach of contract by their title insurance company.

Donna Le and Richard Lau filed a lawsuit Feb. 10 in the Galveston County District Court against Chicago Title Insurance Co., citing breach of contract, Texas Insurance Code violations, unfair insurance practices, breach of the duty of good faith and fair dealing and Deceptive Trade Practices Act violations. 

According to the complaint, on June 15, 2009, the plaintiffs purchased property at 315 Miller Ave., Kemah, and obtained title insurance from the defendant to protect themselves from preexisting and undisclosed title defects.

The plaintiffs state a title defect was subsequently discovered and they presented the first party claim to the defendant.

On Nov. 5, the plaintiffs presented a third party claim to the defendant, according to the complaint. The plaintiffs say the defendant informed them they would only compensate the plaintiffs for the first party claim and would not defend any third party claims.

The defendant is accused of intentionally breaching its duty to defend the plaintiffs based on an erroneous position, according to the complaint.

The plaintiffs are seeking actual damages, interest, fees, treble damages under DTPA, judicial declaration and costs.

Donna Le and Richard Lau are being represented in the case by attorney Aaron Pool of Donato, Minx, Brown & Pool PC.

Galveston County District Court Case No. 14-CV-0159

 

This is a report on a civil lawsuit filed in the Galveston County District Court. The details in this report come from an original complaint filed by a plaintiff. Please note, a complaint represents an accusation by a private individual, not the government. It is not an indication of guilt, and it only represents one side of the story.