Key Facts:

• Nazir purchased a property in 2016, obtaining title insurance from Stewart Title.
• She later borrowed $400,000 from the lender, securing the loan with mortgages on two properties.
• In 2021, funds intended to discharge one mortgage were misappropriated by Malik, the lender's lawyer.
• Nazir seeks compensation from Stewart Title for her losses under the policy, which covers fraud but excludes risks created by the insured.

Legal Claims

• Nazir alleges:
  • Malik acted fraudulently with authority from the lender, causing her loss.
  • Stewart Title breached its insurance contract by denying coverage.
  • The lender negligently failed to oversee Malik and breached fiduciary duties.
• Stewart Title and the lender deny liability and seek summary judgment to dismiss claims against them.

Court Decision

• The motion for summary judgment by Stewart Title was denied.
• Key Reasons:
  • Genuine issues of fact and law exist, particularly regarding Malik’s role and the insurance policy’s coverage.
  • Deciding these issues early could lead to inconsistent findings with the main trial.
  • Discovery and further evidence are necessary for a fair adjudication.

Successful Party

No party was definitively successful in this decision. The court dismissed Stewart Title's motion for summary judgment, allowing the case to proceed to trial.

The decision does not grant any monetary award, damages, or costs.