Key Points:

• Background:

  • Plaintiff, AllenDB Holdings, lent $600,000 to an impersonator of a property owner.
  • After discovering the fraud, the plaintiff recovered $498,256.40 through the CPA.
  • Defendant, Stewart Title Guaranty, indemnified $79,366.45 but disputed $72,000 in prepaid interest.

• Legal Issue: Whether the defendant must indemnify the plaintiff for the $72,000 prepaid interest.

• Court's Findings:

  • Policy Interpretation: The policy covers "actual monetary loss or damage," which includes the mortgage fraud.

  • Plaintiff’s Position: The $72,000 interest, withheld from the loan advance, is part of the loss.

  • Defendant’s Position: The interest wasn't a loss as it wasn't advanced.

  • The court emphasized reading the contract as a whole and interpreting ambiguities in favor of the insured. The $72,000 was part of the actual loss, despite being prepaid.

• Decision:

  • Judgment: Plaintiff awarded $72,000 less ex gratia payments, totaling $70,882.21.
  • Prejudgment Interest: 12% from February 5, 2021, totaling $28,337.35.
  • Costs: Plaintiff awarded $41,248.43.

Conclusion:

The court ruled in favor of AllenDB Holdings, recognizing the $72,000 in prepaid interest as part of the actual loss and awarded total damages and costs accordingly.