BARSTAD v. STEWART TITLE GUAR. CO., INC.

No. 70268-3.

39 P.3d 984 (2002)

Herbert BARSTAD and Diane Barstad, husband and wife, together with their marital community; Scott Duda and Carlene Duda, husband and wife, together with their marital community; Clarence Heiser and Harriett Heiser, husband and wife, together with their marital community; Ingeborg Keicher, an individual; James Koetje and Margaret Koetje, husband and wife, together with their marital community; Thomas Lian and Mabel Lian, husband and wife, together with their marital community; Gary Mesick and Pamela Mesick, husband and wife, together with their marital community; Robin J. Olsen, an individual; Donald Phelps and Carol Phelps, husband and wife, together with their marital community; Dale Soden and Margaret Soden, husband and wife, together with their marital community; Robert Stull and Linda Stull, husband and wife, together with their marital community; and Arne Sunde and Violet Sunde, husband and wife, together with their marital community; on their own behalf and on behalf of similarly situated individuals and marital communities, Respondents, v. STEWART TITLE GUARANTY COMPANY, INC., a Texas insurance company; Pacific Northwest Title Company, Inc., a Washington insurance company; Stewart Title Company of Washington, Inc., a Washington insurance company; Thurston County Title Company, Inc., a Washington insurance company; Sentinel Properties, Inc., d/b/a Evergreen Services, a Washington corporation; The Estate of Dennis Johnson; Katherine Johnson, a single woman; Properties Four, Inc., a Washington corporation; and Thomas R. Hazelrigg III, a single man, Petitioners.

Supreme Court of Washington, En Banc.

Decided February 14, 2002.


Attorney(s) appearing for the Case

Preston, Thorgrimson, Ellis & Holman, John Ankeny Gose, Richard Gibson Masters, amicus curiae on behalf of Wash. Land Title Ass'n.

Sandler, Ahern & McConaughy, Michael David Sandler, Seattle, for Petitioners.

Paul Edward Brain, Michael Jon Layton, Puyallup, Talmadge & Stockmeyer, Philip Albert Talmadge, Tukwila, Short, Cressman & Burgess, James Albert Oliver, Seattle, for Respondents.


BRIDGE, J.

Presented here is a class of insured individuals who claim that title insurance companies should have made certain disclosures to them in preliminary commitments for title insurance. Specifically, these insureds claim that the companies should have disclosed that the parcels of land securing the loans had not been divided from larger tracts, that a senior lien existed on two of the lots, and that loan proceeds were being used to satisfy the senior lien...

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