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  5. 261 S.E.2d 844 (1980)
 

NATIONAL MTG. CORP. v. AMERICAN TITLE INS. CO.

No. 81.

261 S.E.2d 844 (1980)

NATIONAL MORTGAGE CORPORATION v. AMERICAN TITLE INSURANCE COMPANY.

Supreme Court of North Carolina.

February 1, 1980.

Attorney(s) appearing for the Case

Midgette, Page & Higgins by Keith D. Lembo, Chapel Hill, for defendant-appellant.

Allen, Hudson & Wright by James Allen, Jr., Marcus Hudson and Katherine S. Wright, Chapel Hill, for plaintiff-appellee.

Sanford, Adams, McCullough & Beard by E. D. Gaskins, Jr., Charles Montgomery, Peter J. Sarda, Catharine B. Arrowood, Raleigh, for amicus curiae, North Carolina Land Title Association.

HUSKINS, Justice:

This action is based upon a policy of title insurance issued by defendant. Plaintiff seeks to recover losses allegedly suffered by it by reason of the invalidity of the lien of its deed of trust on the Abernethy property. National Mortgage's lien has been previously declared invalid in a separate action brought by Mr. and Mrs. Abernethy against National Mortgage to enjoin foreclosure proceedings and declare National Mortgage's

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