Regal Center LLC v. Fidelity National Title Insurance Company: Summary Judgment Ruling
REGAL CENTER LLC, Plaintiff, v. FIDELITY NATIONAL TITLE INSURANCE COMPANY, Defendant.
Civil Action No. 3:21-CV-02837-N.
United States District Court, N.D. Texas, Dallas Division.
April 11, 2024.
DAVID C. GODBEY, Chief District Judge.
Introduction
Chief District Judge David C. Godbey delivered the opinion on Fidelity National Title Insurance Company's ("Fidelity") motion for summary judgment. The court granted the motion in part and denied it in part.
I. Background
The case involves a dispute between Regal Center LLC ("Regal") and Fidelity over a title insurance claim. Regal purchased property in Fort Worth, Texas, and obtained title insurance from Providence Title Insurance, with Fidelity as the underwriter. An undisclosed general utility easement held by Atmos Energy on the property led to Atmos notifying Regal of its plans to construct a pipeline. Regal filed a claim with Fidelity, which was initially accepted. Fidelity negotiated a partial release of the easement, compensating Regal with $231,255.00, which Regal rejected, deeming it insufficient. Regal then sued Fidelity for breach of contract, promissory estoppel, violations of Chapter 541 of the Texas Insurance Code, and breach of the duty of good faith and fair dealing.
II. Legal Standard for Summary Judgment
Summary judgment is granted if there is no genuine dispute over material facts and the movant is entitled to judgment as a matter of law. The burden initially lies with the movant to show the absence of genuine issues for trial. If successful, the burden shifts to the nonmovant to demonstrate a genuine issue of material fact.
III. Rulings on Specific Claims
A. Promissory Estoppel
Regal's claim for promissory estoppel fails due to the existence of a valid contract. Promissory estoppel applies only in the absence of a contract. Since the alleged promise to compensate for the loss is within the contract's scope, this claim cannot stand.
B. Statutory and Common Law Claims
Regal's claims under Chapter 541 of the Texas Insurance Code and for breach of the duty of good faith and fair dealing are barred by the two-year statute of limitations. These claims accrued on June 12, 2019, when Fidelity tendered the check, and Regal did not file the suit until October 6, 2021.
IV. Breach of Contract Claim
The court found a genuine issue of material fact regarding whether Fidelity breached the contract. The primary dispute centers on the amount Fidelity needed to pay to fulfill its obligations. Fidelity's appraiser valued the loss at $231,255.00, while Regal's appraiser valued it at $1,935,500.00. This conflicting evidence precludes summary judgment on the breach of contract claim.
V. Conclusion
The court granted summary judgment for Fidelity on Regal's claims for promissory estoppel, violation of the duty of good faith and fair dealing, and violation of Chapter 541 of the Texas Insurance Code. However, the breach of contract claim survives due to the genuine issue of material fact regarding the amount owed.
Keywords: Regal Center LLC, Fidelity National Title Insurance Company, summary judgment, title insurance, breach of contract, promissory estoppel, Texas Insurance Code, statute of limitations.
Meta Title: Regal Center LLC v. Fidelity National Title Insurance Company: Summary Judgment Ruling
Meta Description: The court ruled on Fidelity National Title Insurance Company's summary judgment motion in a title insurance dispute with Regal Center LLC, granting in part and denying in part.