Background Facts: Carol Suzanne Vogt purchased title insurance from Stewart Title Guaranty Company when she bought her home in 2012. In 2020, she discovered her septic system was not up to code and filed a claim for replacement costs, which Stewart Title denied. Vogt then sought $73,731.82 in compensation for the septic system replacement expenses.

Legal Arguments/Issues: Vogt argued that the title insurance policy and the Septic System Endorsement should cover the replacement costs. She claimed the insurer acted in bad faith and was negligent in handling her claim. Stewart Title countered that the title insurance did not cover the septic system issues because these issues were either known at the time of purchase or would not have been revealed by a local authority search.

Court's Ruling: The court analyzed the insurance policy terms, including exclusions and the Septic System Endorsement. It concluded that the policy did not cover Vogt's claimed loss, as the septic system problems were known before purchase or could not have been discovered through a standard search. The court found no evidence supporting Vogt's claims of bad faith or negligence by the insurance company. Therefore, the court ruled in favor of Stewart Title, dismissing Vogt's action.

Costs/Damages Awarded: The court did not award any damages to Vogt. As the successful litigant, Stewart Title was presumptively entitled to its costs, subject to further agreement or court determination.