NJ LAWYERS' FUND v. STEWART TITLE

A-44 September Term 2009

1 A.3d 632 (2010)

203 N.J. 208

NEW JERSEY LAWYERS' FUND FOR CLIENT PROTECTION, Plaintiff-Respondent, v. STEWART TITLE GUARANTY CO., Defendant-Appellant, and Atlantic Title Agency, Inc., and Richard Pizzi, Defendants.

Supreme Court of New Jersey.

Decided August 2, 2010.


Attorney(s) appearing for the Case

Jaimee Katz Sussner argued the cause for appellant (Herrick, Feinstein, attorneys; Ms. Sussner and Rachel C. Engelstein, Newark, on the briefs).

Daniel R. Hendi, Deputy Director, argued the cause for respondent (Kenneth J. Bossong, Director and Counsel, New Jersey Lawyers' Fund for Client Protection, attorney; Mr. Hendi and Mr. Bossong, on the letter briefs).

Elliot D. Ostrove, Florham Park, argued the cause for amicus curiae New Jersey State Bar Association (Allen A. Etish, President and Day Pitney, attorneys; Richard H. Steen, President-Elect, of counsel; Mr. Ostrove, Lawrence J. Fineberg and Donald A. Soutar, Florham Park, on the brief).

Mark R. Cuker submitted a brief on behalf of amicus curiae National Association of Consumer Advocates (Williams Cuker Berezofsky, attorneys; Mr. Cuker and Alan H. Sklarsky, on the brief).

Michael J. Fasano, Freehold, submitted a brief on behalf of amici curiae American Land Title Association and New Jersey Land Title Association (Lomurro, Davison, Eastman & Munoz, attorneys).


Justice WALLACE, JR., delivered the opinion of the Court.

In this case, we must determine whether the title insurance company in a real estate transaction is responsible for an attorney's theft of his clients' funds from the attorney's trust account. After the unauthorized removal of the clients' funds, the attorney ordered title insurance and the real estate closing took place. The checks written from the attorney's trust account to cover the costs related to the...

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