A Florida state appeals court has partially overturned a lower court’s ruling, determining that Old Republic National Title Insurance Co. must defend two insureds in an ongoing lawsuit. The case involves a rescission claim stemming from allegations of a conspiracy with a property seller, which the appeals court found did not trigger an exclusion in the insurer’s policy.
On Wednesday, a three-judge panel of the Third District Court of Appeal ruled that Old Republic had a duty to defend Jose Fernandez and Olga Palma against a rescission claim. The lawsuit sought to cancel the deed transferring a property from the seller to the insureds, as Langley, the original buyer, contended that his contract was superior and had been interfered with by the insureds. The panel found that the rescission claim, as pleaded, only contained generalized allegations, and thus, the exclusion cited by the insurer did not apply.
The court reversed the lower court’s decision and remanded the case for further proceedings. The dispute began in 2019 when Benton William Langley entered into a contract to buy a 20-acre parcel of property in the Florida Keys for $1.2 million. A backup contract was later signed by Fernandez and Palma for a slightly higher price. When Langley’s contract failed to close on the scheduled date, the insureds completed the purchase the following day.
