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American Title Ins. Co. v. Coakley

District Court of Appeal of Florida, Third District
Sep 28, 1982
419 So. 2d 816 (Fla. Dist. Ct. App. 1982)

Summary

holding that a breach of a warranty deed entitles grantor to recover amount paid to remove encumbrance

Summary of this case from In re St. Laurent

Opinion

No. 82-423.

September 28, 1982.

Appeal from the Circuit Court, Dade County, Joseph J. Gersten, J.

Heitner Rosenfeld and Allan Stein, North Miami Beach, for appellant.

Sylvester P. Adair, Homestead, for appellee.

Before HUBBART, C.J., and BARKDULL and NESBITT, JJ.


Mrs. Coakley conveyed her home to the Gomezes in 1977. The abstract of title failed to disclose the existence of an Internal Revenue Service lien against Mrs. Coakley. The title insurance company that insured the Gomezes paid the lien; and, as subrogee of the Gomezes, instituted this action against Mrs. Coakley for breach of the covenant against encumbrances. On this uncontradicted record, the trial judge nonetheless issued final judgment in favor of the defendant. We reverse.

Pursuant to the warranty deed, the grantor covenants that the land is free and clear of encumbrances, § 689.03, Fla. Stat. (1977), including a lien for taxes. Howard Cole Co. v. Whidden, 77 Fla. 842, 82 So. 297 (1919). Any breach thereof entitles the grantee, his assignee or subrogee to recover the amount paid to remove the lien on the property, with interest.

Accordingly, we reverse and remand with directions to enter judgment for the plaintiff.

Reversed and remanded.


Summaries of

American Title Ins. Co. v. Coakley

District Court of Appeal of Florida, Third District
Sep 28, 1982
419 So. 2d 816 (Fla. Dist. Ct. App. 1982)

holding that a breach of a warranty deed entitles grantor to recover amount paid to remove encumbrance

Summary of this case from In re St. Laurent

permitting title insurer, which paid to clear priority Internal Revenue Service lien, to be subrogated to rights of its insured where third party failed to disclose lien on property despite covenant to do so

Summary of this case from Stewart Title Guar. Co. v. Kelly

In Coakley, we held that any breach of the grantor's covenant that the land is free and clear of encumbrances, including tax liens, "entitles the grantee, his assignee or subrogee to recover the amount paid to remove the lien on the property, with interest."

Summary of this case from Hornstein v. Guarantee Ins. Co.
Case details for

American Title Ins. Co. v. Coakley

Case Details

Full title:AMERICAN TITLE INSURANCE COMPANY, AS SUBROGEE OF NICHOLAS GOMEZ AND LINDA…

Court:District Court of Appeal of Florida, Third District

Date published: Sep 28, 1982

Citations

419 So. 2d 816 (Fla. Dist. Ct. App. 1982)

Citing Cases

Title Ins. Co. v. Costain Arizona

We note that courts have found title insurers subrogated to the rights their insured may have had against the…

Stewart Title Guar. Co. v. Kelly

Kelly, for example, did not represent that the property was clear of all encumbrances. Contrast American…