Question
2. Lawyers Title Insurance Company hired lawyer David Groff as Lawyers Title's settlement agent and attorney for the lender in a real estate transaction involving
2. Lawyers Title Insurance Company hired lawyer David Groff as Lawyers Title's settlement agent and attorney for the lender in a real estate transaction involving property in Londonderry, New Hampshire.Prior to closing the real estate sale, Groff retained a title abstractor to conduct a title search and prepared an abstractor's report.Because the title abstractor negligently failed to find and disclose a construction mortgage on the property, Groff issued title insurance policies to both the lender and the buyers without excepting the mortgage.As a result, the construction mortgage was not discharged prior to the sale.The mortgagee asserted its rights and threatened to foreclose on the property until Lawyers Title paid the mortgagee $152,000.On what grounds did Lawyers Title seek to recover a portion of its loss from Groff?
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