Greenberg v. Stewart Title Guaranty Co.
Wisconsin Supreme Court
492 N.W.2d 147 (1992)
Greenberg (plaintiff) obtained title commitments and owner's title insurance policies from Stewart Title (defendant) through its agent Southeastern (defendant) before buying four condominium units used as loan collateral; when Greenberg couldn't sell the units due to an alleged title defect, lending banks foreclosed and obtained deficiency judgments against him, and Greenberg sued Stewart Title and Southeastern in both contract and tort for negligence. The trial court found only a contractual relationship existed, precluding tort liability.
Whether a title insurance company or its agent can be held liable in tort for an alleged title defect if neither voluntarily assumed an additional duty to conduct a title search.