The plaintiffs sued their title insurer, FCT, after being denied coverage for alleged construction deficiencies.
FCT brought a third party claim against the tort defendants (the sellers/builders and municipality) for contribution and indemnity.
The plaintiffs brought a cross-motion to strike FCT's third party claim for failing to disclose a reasonable cause of action.
The court granted the cross-motion, finding that FCT had not settled the plaintiffs' claim and therefore could not rely on the Negligence Act, common law, equity, or subrogation rights to claim contribution and indemnity.
The court also granted FCT's motion on consent to have the title insurance action and the tort action heard together or consecutively to avoid duplication.