Conway v. Title Ins. Co.

CourtSupreme Court of Alabama
Writing for the CourtHARWOOD; HEFLIN
Citation291 Ala. 76,277 So.2d 890
PartiesMaudine D. Neese CONWAY v. TITLE INSURANCE COMPANY, a corporation. SC 78.
Decision Date10 May 1973

Page 890

277 So.2d 890
291 Ala. 76
Maudine D. Neese CONWAY
v.
TITLE INSURANCE COMPANY, a corporation.
SC 78.
Supreme Court of Alabama.
May 10, 1973.

[291 Ala. 77]

Page 891

Samuel L. Stockman, Mobile, for appellant.

Charles B. Bailey, Jr., Mobile, for appellee.

HARWOOD, Justice.

This is an appeal from a decree of the Circuit Court of Mobile County, Alabama, adjudging and decreeing in substance that any damage suffered by the appellant here was not within the coverage of a title insurance policy issued by Title Insurance Company to the appellant, Mrs. Maudine D. Neese Conway.

The evidence introduced below amply tends to show that on 7 May 1965, this appellant purportedly foreclosed a mortgage given by Gulf Development Company to secure a loan made to Gulf by the appellant. The land covered by the mortgage included a large number of lots in two subdivisions being developed by Gulf, including Lot 8 of the First Unit of Gulf Hills subdivision. Lot 8, with the house thereon, [291 Ala. 78] had been sold by Gulf to Francis Andrews in 1957 for $29,500.00. Andrews had made improvements on the house and lot amounting to $5,500.00.

As Gulf would sell the lots in its subdivision they would routinely be released from the mortgage upon the payment of $1,200.00 to Mrs. Conway, the mortgagee. Every lot sold by Gulf in the subdivisions had been so released except Lot 8 sold to Andrews. The appellant Conway was fully aware of this releasing procedure. Unfortunately for Andrews he neglected to obtain a release of Lot 8 from the mortgage upon purchasing it.

Mrs. Conway's husband, who is an attorney and was her agent, admitted that no attempt was made to give Andrews actual notice of the foreclosure sale because of fear that Andrews would seek to obtain a belated release of his lot from the mortgage by the payment of $1,200.00. The evidence also showed that Mrs. Conway became aware of the sale of Lot 8 to Andrews and that his lot had not been released from her mortgage sometime prior to 8 August 1964, and that she became personally aware that Andrews was occupying the home on Lot 8 when in August 1964 she moved into a house in Gulf Hills subdivision

Page 892

located about a block from Andrews' house on Lot 8.

Gulf being in default on the mortgage, Mrs. Conway, on 7 May 1965, purportedly foreclosed the Gulf mortgage and obtained a foreclosure deed, having bid $50,000.00 at the mortgage sale. The next day she procured from Title Insurance Company the policy of title insurance here sued on.

The purported foreclosure sale was set aside by the Circuit Court of Mobile County because of the misconduct of appellant or her agents in attempting to conceal from Andrews the fact that he could clear his title by paying $1,200.00 for a release of his property from the mortgage. This decree was affirmed by this court on 28 May 1970, on the basis that the appellant engaged in conduct deliberately calculated to conceal...

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8 practice notes
  • National Mortg. Corp. v. American Title Ins. Co., No. 7815SC587
    • United States
    • North Carolina Court of Appeal of North Carolina (US)
    • June 19, 1979
    ...See e. g., Keown v. West Jersey Title and Guaranty Company, 161 N.J.Super. 19, 390 A.2d 715 (1978); Conway v. Title Insurance Co., 291 Ala. 76, 277 So.2d 890 (1973); Feldman v. Urban Commercial, Inc.,87 N.J.Super. 391, 209 A.2d 640 (1965); Taussig et al. v. Chicago Title & Trust Co., 17......
  • Keown v. West Jersey Title & Guaranty Co.
    • United States
    • Superior Court of New Jersey
    • January 28, 1977
    ...grantee, and the risk was not covered by the title policy. Other cases holding in similar fashion include Conway v. Title Ins. Co., 291 Ala. 76, 277 So.2d 890 (1973) (intentional concealment and oppression of creditor); Ginger v. American Title Ins. Co., 29 Mich.App. 279, 185 N.W.2d 54 (App......
  • Keown v. West Jersey Title & Guaranty Co.
    • United States
    • New Jersey Superior Court – Appellate Division
    • July 7, 1978
    ...185 N.W.2d 54, 56 (Ct.App.1970) (insured took title fraudulently to assist in evasion of grantor's creditors); Conway v. Title Ins. Co., 291 Ala. 76, 277 So.2d 890, 892 (Sup.Ct.1973) (insured kept occupant of property from discovering how to clear his title and she knew of this defect); Law......
  • Safeco Title Ins. Co. v. Moskopoulos
    • United States
    • California Court of Appeals
    • March 9, 1981
    ...and therefore created, not by the insured but a third party. Such an interpretation is unreasonable. (See, Conway v. Title Ins. Co. (1973) 291 Ala. 76, 277 So.2d 890; In re Wiltse Bros. Corp., 357 F.2d 190 (6th Cir. With regard to the term "created" the court in Hansen v. Western ......
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8 cases
  • National Mortg. Corp. v. American Title Ins. Co., No. 7815SC587
    • United States
    • North Carolina Court of Appeal of North Carolina (US)
    • June 19, 1979
    ...See e. g., Keown v. West Jersey Title and Guaranty Company, 161 N.J.Super. 19, 390 A.2d 715 (1978); Conway v. Title Insurance Co., 291 Ala. 76, 277 So.2d 890 (1973); Feldman v. Urban Commercial, Inc.,87 N.J.Super. 391, 209 A.2d 640 (1965); Taussig et al. v. Chicago Title & Trust Co., 17......
  • Keown v. West Jersey Title & Guaranty Co.
    • United States
    • Superior Court of New Jersey
    • January 28, 1977
    ...grantee, and the risk was not covered by the title policy. Other cases holding in similar fashion include Conway v. Title Ins. Co., 291 Ala. 76, 277 So.2d 890 (1973) (intentional concealment and oppression of creditor); Ginger v. American Title Ins. Co., 29 Mich.App. 279, 185 N.W.2d 54 (App......
  • Keown v. West Jersey Title & Guaranty Co.
    • United States
    • New Jersey Superior Court – Appellate Division
    • July 7, 1978
    ...185 N.W.2d 54, 56 (Ct.App.1970) (insured took title fraudulently to assist in evasion of grantor's creditors); Conway v. Title Ins. Co., 291 Ala. 76, 277 So.2d 890, 892 (Sup.Ct.1973) (insured kept occupant of property from discovering how to clear his title and she knew of this defect); Law......
  • Safeco Title Ins. Co. v. Moskopoulos
    • United States
    • California Court of Appeals
    • March 9, 1981
    ...and therefore created, not by the insured but a third party. Such an interpretation is unreasonable. (See, Conway v. Title Ins. Co. (1973) 291 Ala. 76, 277 So.2d 890; In re Wiltse Bros. Corp., 357 F.2d 190 (6th Cir. With regard to the term "created" the court in Hansen v. Western ......
  • Request a trial to view additional results

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