Jackson Walker recently obtained dismissal of breach of contract, negligent misrepresentation, and Texas Insurance Code claims seeking as much as $2 million from firm clients Stewart Title Guaranty Company and Stewart Title Company d/b/a Central Texas Title.

Dr. Martin McGonagle filed a lawsuit in a state district court in Dallas against the Stewart Title entities, alleging that STGC’s title insurance policy included coverage for a recorded restriction and that both Stewart Title defendants breached duties owed to Dr. McGonagle. The suit stemmed from Dr. McGonagle’s purchase of a five-acre tract of land in downtown Granbury, Texas, that was subject to a Dedication Instrument which required the property owner to move and maintain a historic motel office building located on the site. Dr. McGonagle claimed that he was owed over $550,000 in out-of-pocket losses and over $1.6 million for the effect that the Dedication Instrument allegedly had on the property.

Jackson Walker argued, among other things, that the Dedication Instrument was not an encumbrance on title to the land, but was akin to a use restriction, not a covered matter, so the title insurance policy did not apply. Jackson Walker also showed that the Stewart Title entities did not breach any duties to Dr. McGonagle that allegedly arose from the fact that the Dedication Instrument was still in effect. The court agreed with the firm’s arguments and dismissed Dr. McGonagle’s claims.

The Stewart Title parties were represented by Jackson Walker partners John Koepke and Scott McElhaney. Jackson Walker has a long history of providing exceptional service to Stewart Title, having represented the company in various matters for more than 20 years, and is appreciative of the opportunity to assist its client in achieving this latest success.

www.jw.com