Teresa Chudy et al. v. William Raveis Real Estate, Inc. et al. (2010)

MEMORANDUM OF DECISION ON MOTION FOR SUMMARY JUDGMENT

In this eleven-count amended complaint claiming breach of contract and fraud by the seller of property at 170 Coles Road, Cromwell, count eleven is directed to Connecticut Attorneys Title Insurance Company (“CATIC”) claiming it is liable under its title insurance policy issued to plaintiff.   Plaintiffs allege that title was defective because building permits were not in place, that a notice of assessment for a water main extension by the Cromwell Fire District was not noted and that the policy failed to note that there was no right of access to and from the property because Coles Road bordering the property was not legally approved citing a notice from the Department of Transportation recorded in Vol. 917 at page 111 of the Cromwell Land Records.

Defendant moved for summary judgment on March 25, 2010 claiming that the claimed omissions were either not covered by the policy or specifically excluded.

Consideration of these claims and examination of the title insurance policy confirm that none of plaintiff's claims covered by the title policy, constitute defects in title or render the property unmarketable.

-I-

Exclusion No. 1 in the policy expressly excludes from coverage matters which arise by “any law, ordinance or governmental regulation (including ․ building and zoning laws) restricting or relating to (1) occupancy, use or enjoyment of the land.”   Failure to obtain a building permit falls clearly within this exclusion.

-II-

The notice of assessment by the Cromwell Fire Department was recorded on December 16, 2008, more than two years after November 20, 2006, the effective date of the title policy.   Claims relating to defects, liens or encumbrances subsequent to the date of the policy are specifically excluded from coverage if “not recorded in the public records at date of policy.”

-III-

The third claim, not alleged in the amended complaint, but raised at oral argument refers to a notice for the Department of Transportation dated April 18, 2007, and recorded in Vol. 917 at page 111 of the Cromwell Land Records and enlarged to a claim of non access to the property.

That notice is in fact an approval of the Sovereign Ridge subdivision in which the subject property is located, which approval lists several conditions upon which the approval is based.   These include reference to the required site drives, site distances, stop signs and intersection illumination of Coles Road. It is not alleged that any of these conditions have not been met and in any event such non compliance of required improvements on Coles Road would not affect access to the property or constitute a title defect covered by the policy.   In any event, this notice is specifically listed in Paragraph 7, of Schedule B of the title policy.

Since no viable claim has been alleged under the title policy and no material issue of fact exists, CATIC's motion for summary judgment is granted.

Wagner, J., JTR

Wagner, Jerry, J.T.R.