Laurie represents a residential developer, Daffy, who is buying 90 acres of undeveloped land.Daffy told Laurie that the seller told him that six months ago, he granted a 40 foot wide easement to Great Power Col running along one of the tract's boundaries. Daffy and the seller agreed to lower purchase price because of the easement.Laurie orders a title insurance commitment from an insurer with whom she and her firm have no affiliation. The title insurance commitment does not refer to Great Power Co.'s easement.

(a) What action, if any, should Laurie take at the present time?

(b) Assume that Laurie personally searches the land records for the past year, and finds the Great Power Co. easement recorded in the proper office. A local attorney- one of Laurie's friends-is agent for the insurer and, in his search, evidently missed the easement. What should Laurie do? What are her ethical obligations to her client? To the insurance company? To her friend?