Murnan v. Stewart Title Guar. Co., 1:08cv2.

Decision Date01 April 2009
Docket NumberNo. 1:08cv2.,1:08cv2.
Citation607 F.Supp.2d 745
PartiesAlexandra P. MURNAN, Trustee, Plaintiff, v. STEWART TITLE GUARANTY COMPANY, Defendant.
CourtU.S. District Court — Eastern District of Virginia

Page 745

607 F.Supp.2d 745
Alexandra P. MURNAN, Trustee, Plaintiff,
v.
STEWART TITLE GUARANTY COMPANY, Defendant.
No. 1:08cv2.
United States District Court, E.D. Virginia, Alexandria Division.
April 1, 2009.

Kenneth Allen Martin, The Martin Law Firm, McLean, VA, for Plaintiff.

Sean Patrick Roche, Odin Feldman & Pittleman PC, Fairfax, VA, for Defendant.

ORDER

T.S. ELLIS, III, District Judge.


This is a diversity action for breach of a title insurance policy. Plaintiff, Alexandra Murnan, in her capacity as Trustee of the Murnan Springhill Trust ("Trust"), purchased a title insurance policy ("Policy") from defendant Stewart Title Guaranty Co. ("Stewart Title") insuring the title of a property held in the Trust and identified as 1150 Springhill Road in McLean, Virginia ("Property"). In addition to serving as Trustee, Murnan was also (i) the sole holder of the right to revoke the trust and (ii) the sole beneficiary of the Trust for the duration of her life. At the time she purchased the Policy, a number of Internal Revenue Service ("IRS") tax judgments were pending against Murnan in her individual capacity. She claims a later sale of the Property to a third party foundered because the IRS tax judgments against her in her personal capacity operated as liens on the Property. Murnan, as Trustee, filed a claim with Stewart Title for coverage under the Policy, which claim was denied. Murnan, as Trustee, subsequently defaulted on the mortgage payments for the Property, and the Property was sold at a foreclosure auction for an amount less than she would have received from the sale that had previously foundered. Thereafter, Murnan, as Trustee, filed the instant lawsuit, claiming that Stewart Title breached the Policy by failing to provide coverage. The material undisputed facts are fully set forth in a prior Memorandum Opinion and need not be repeated here. See Murnan v. Stewart Title Guar. Co., 585 F.Supp.2d 825 (E.D.Va.2008)

Page 746

On October 30, 2008, Murnan, as Trustee, was granted partial summary judgment. See id.; see also Murnan, 585 F.Supp.2d 825 (E.D.Va.2008) (Order). Specifically, plaintiff was granted summary judgment insofar as (i) "the federal tax liens against ... Murnan in her personal capacity trigger the [Policy's] coverage provision for liens on title"; and (ii) the Policy's exclusion for liens created, suffered, assumed, or agreed to by the insured claimant ("Exclusion") was held not to bar coverage. See id.

Thereafter, on January 12, 2009, an Order issued advising the parties that the Court, sua sponte, would reconsider its grant of partial summary judgment solely with respect to one of the questions central to its holding—namely, the conclusion that the Exclusion did not bar coverage. See Murnan, No. 1:08cv2 (E.D.Va. Jan. 12, 2009) (Order). Specifically, the parties were directed to submit supplemental briefing addressing interpretation of the Exclusion in two respects:

(i) Whether the Policy definition of the "insured" as "Alexandra P. Murnan, Trustee for the Murnan Spring Hill Trust" (a) was intended to refer Murnan's Trustee status merely as identifying information; (b) was intended to refer to Murnan's Trustee status to limit the definition of the insured to Murnan, acting solely in her capacity as Trustee; (c) is ambiguous, as reflected in the October 30 Memorandum Opinion; or (d) should otherwise be interpreted contrary to the result reached in the October 30 Memorandum Opinion.

(ii) Whether, assuming the Policy definition of the "insured" either (a) is ambiguous; (b) was intended to limit the definition of the "insured" to Murnan, acting solely in her capacity as Trustee; or (c) should otherwise be interpreted to limit the relevant actions under the Exclusion to those of Murnan, acting solely in her capacity as Trustee, the Exclusion nonetheless...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT