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Surveys, Title Insurance and Shea Homes, LLC V. Old Republic National Title Insurance Company (U.S.D.C. Western D.,Civil Case No. 3:05cv005 2007) by Ed Urban

Jan 2008

1. Introduction

By way of disclosure, at the time the case first arose, the author was counsel for The Title Company of North Carolina and its parent, Old Republic, and was the counsel that issued the policy in question and worked on the claim. The results of the case are no surprise. However, the principles and reasoning of the case are important.

2. The facts

Shea Homes, the Plaintiff, purchased 155.9 acres in southern Mecklenburg County and received title by deed recorded on March 10, 2000 in Book 11140, Page 789 of the Mecklenburg County Public Registry (the “Property”). The Plaintiff purchased the Property in order to develop a subdivision known as the Providence Pointe Subdivision (“Providence Point”). Prior to purchasing the Property, the Plaintiff obtained a boundary survey (the “Boundary Survey”) of the Property from Land Design Surveying, Inc. (“Land Design”). The Boundary Survey, which was performed by David B. Boyles (“Boyles”) on behalf of Land Design, was dated December 10, 1999 and was last revised on March 8, 2000. The Boundary Survey plotted the metes and bounds description of the Property as set forth in the Deed and as referenced in the Policy referred to below. The Boundary Survey shows a graphical representation of two waste disposal areas on the Property. These waste disposal areas were created prior to the Plaintiff’s purchase of the Property in order to dispose of debris created by the clearing of the land. The debris was comprised primarily of organic material, such as stumps, trees, branches, and logs, and therefore will decompose over time, thus rendering the waste areas unsuitable for building.

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