Laabs v. Chicago Title Insurance Co.

Chicago Title Insurance Company (defendant) issued title insurance to Theodore and Selma Laabs (plaintiffs) covering their property, but the policy's own description of the property was faulty, omitting a lot that was actually part of the land the Laabses bought. Because the deed wasn't indexed under that missing lot, the neighboring McKenzies' property ended up overlapping with the Laabses' land, and when the Laabses sued the McKenzies in a quiet-title action, the trial court ruled against them. The Laabses then sued Chicago Title, arguing its negligent property description in the policy itself caused their loss; Chicago Title countered that the policy excluded disputes arising before the policy's effective date. The trial court found the dispute was covered and ordered Chicago Title to pay the reasonable value of the lost property plus costs, and Chicago Title appealed.