The plaintiff purchased a restaurant business and condominium unit.
After closing, she discovered an outstanding municipal work order against the property.
She settled her claim with the title insurer but sued her real estate solicitor for professional negligence, alleging he failed to conduct necessary searches.
The solicitor third-partied the title insurer, claiming a duty to defend and indemnify under an agreement with the Law Society.
The Superior Court of Justice dismissed the plaintiff's action, finding no negligence as the purchasers had insisted on a short closing and waived searches, and the plaintiff failed to prove any damages.
The court granted the third-party claim, holding that the title insurer had a duty to pay the solicitor's defence costs because the true nature of the plaintiff's claim fell within the scope of the title insurance policy.