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SOUTHERN TITLE GUARANTY COMPANY v. PRENDERGAST

No. 577.

478 S.W.2d 806 (1972)

SOUTHERN TITLE GUARANTY COMPANY, Inc., Appellant, v. Vincent PRENDERGAST et ux., Appellees.

Court of Civil Appeals of Texas, Houston (14th Dist.).

Rehearing Denied March 22, 1972.

Second Rehearing Denied April 12, 1972.

Attorney(s) appearing for the Case

Joel W. Cook, Schlanger, Cook & Cohn, Houston, for appellant.

Larry F. York, Baker & Botts, Houston, for appellees.

TUNKS, Chief Justice.

On February 17, 1964, the appellant, Southern Title Guaranty Company, Inc. issued to appellees, Vincent Prendergast and wife, Leola Prendergast, a policy of title insurance covering a 22 acre tract of land the Prendergasts had just bought. In July of 1965 when the Prendergasts undertook to sell the property to another person another title guaranty company refused to issue a title policy because of an outstanding undivided 10% interest in one...

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