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Adam Leitman Bailey, P.C. Wins Motion to Dismiss Action Seeking Coverage After Claim Denial in Favor of Title Company

In Mendy G. Holdings LLC v. AmTrust Title Insurance Company, the plaintiff/insured sued its title insurance company for coverage to defend a claim of ownership to the plaintiff’s property made by a third party claiming that he owns the plaintiff’s property by virtue of an unrecorded deed assignment. Adam Leitman Bailey, P.C. was retained to defend the title insurance company and to confirm the denial of coverage.

Adam Leitman Bailey, P.C. determined that the claim to ownership was being made by a person, who was in possession of the premises at the time the plaintiff purchased the property, and, therefore, moved to dismiss the action based on the express, clear, and well-settled “rights of tenants or persons in possession” exception to coverage.

During a heated oral argument before the Honorable Peter P. Sweeny, J.S.C. in Kings Supreme Court, Adam Leitman Bailey, P.C. ensured that opposing counsel admitted to the judge that both sides agreed that (1) the title policy annexed to the papers was a true and correct copy of the policy and (2) the third party claiming ownership was in possession of the property at the time the plaintiff purchased it. Persuaded by Adam Leitman Bailey, P.C.’s argument, and having no questions of fact left unanswered, Judge Sweeney granted Adam Leitman Bailey, P.C.’s motion to dismiss at the bench.

Jackie Halpern Weinstein, Esq. of the Title Litigation Group and Foreclosure Group at Adam Leitman Bailey, P.C. drafted and argued this winning motion for the title company, resolving the claim in under three months.

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