Wheeler v. Equitable Trust Co.

Citations

• 221 Pa. 276
• 70 A. 750
• 1908 Pa. LEXIS 478

Syllabus

<p>Insurance — Title insurance — Mortgage—Indemnity.</p> <p>Where a policy of title insurance of a mortgage is by its terms a general contract of indemnity against loss from defects or unmarketability “ of the title of the insured to the estate, mortgage or interest ” in the real estate included in the mortgage, and the policy contains in a note to a schedule a guaranty to complete certain buildings according to plans and specifications mentioned, the court will construe the whole contract to be one of indemnity; and where it also appears that the insured, who held the mortgage as collateral for a loan, had bought it in at his own sale, permitted by the terms of the loan, at a price equal to the loan, and thereafter had foreclosed the mortgage and bought in the real estate, ¿he insured will not be permitted in an action on the policy to show a defect in title or that the houses had not been completed in accordance with the plans and specifications. In such a case it is immaterial that the insured, and not a stranger, bid the mortgage up and bought it in at an amount equal to the loan, and it is also immaterial that the only other bidder was the insolvent borrower. The insured having bought the mortgage at a price equal to the loan, suffered no loss, and is therefore entitled to no indemnity.</p>