Bluehaven Funding, LLC and Kanich Development, LLC (collectively, “appellants”) lost approximately $2.4 million in real estate loan proceeds as a result of doing business with Robert Hartmann d/b/a DHP Investments LLC (“Hartmann”) and Capital Title Company (“Capital Title”). In an effort to recover the losses, appellants filed this lawsuit against First American Title Insurance Company (“First American”), alleging First American was vicariously liable for Capital Title’s actions due to an agency relationship that existed between the parties, and First American was directly negligent for failing to monitor Capital Title’s business. The district court granted summary judgment in favor of First American on all claims. We affirm.
First American is a California corporation authorized to do business in Missouri as a land title insurance company. On or about July 9, 1999, First American entered into a Policy Issuing Agency Contract (the “Agency Agreement”) with Capital Title that named First American as “principal” and Capital Title as “agent.” In relevant part, the Agency Agreement stated the following with regard to Capital Title’s appointment as First American’s agent, and the scope of Capital Title’s authority pursuant to the appointment:
APPOINTMENT
1. Principal hereby appoints Agent to act for, and in the name of, Principal in transacting title insurance business, but only for the purposes and in the manner specifically set forth in this contract and for no other purpose and in no other manner whatsoever. The authority hereby granted is subject to all of the limitations on the scope of the Agency contained in this contract, the limitations and regulations imposed by the insurance laws of the State of Missouri and rules promulgated pursuant thereto.
AUTHORITY
2. Agent is authorized to issue, in the name of Principal, title insurance commitments and policies (including endorsements hereto); provided, that:
Jurisdiction: U.S. Court of Appeals, Eighth Circuit
Related Categories: Civil-Procedure, Contracts, Insurance
| District Court Judge(s) | District Court Judge Jurisdiction(s) |
| Lyle E. Strom | District of Nebraska |
| Circuit Court Judge(s) | Circuit Court Judge Jurisdiction(s) |
| Kermit Edward Bye | U.S. Court of Appeals, Eighth Circuit |
| Diana E. Murphy | U.S. Court of Appeals, Eighth Circuit |
| Appellant Lawyer(s) | Appellant Law Firm(s) |
| Erin F. Bernstein | Greensfelder, Hemker & Gale, PC |
| Kathi Lynne Chestnut | Greensfelder, Hemker & Gale, PC |
| Kevin F. Hormuth | Greensfelder, Hemker & Gale, PC |
| Appellee Lawyer(s) | Appellee Law Firm(s) |
| Mark G. Arnold | Husch & Blackwell |
