Jericho State v. Chicago Title Insurance

Syllabus

We are presented with the question of whether a reservation of a right of way on an official county map as authorized by section 6-7-1220 of the South Carolina Code (2004), and a county ordinance constitutes a defect in or encumbrance on the title to the affected land or renders its title unmarketable so as to come within the coverage of two title insurance policies. Based on the specific circumstances of this case, we hold it does. We further conclude none of the policies' coverage exclusions apply. We therefore reverse the order of the special referee granting Chicago Title Insurance Company (Chicago Title) summary judgment as to Jericho State Capital Corporation of Florida's (Jericho's) and Lynx Jericho Partners, LLC's (Lynx Jericho's) (collectively Appellants) claims for breach of contract and breach of the covenant of good faith and fair dealing. We affirm, however, the order granting summary judgment to Chicago Title on Appellants' bad faith claim.