Swanson v. Safeco Title Insurance Co.

Brent and Darlene Swanson (plaintiffs) purchased title insurance from Safeco Title Insurance Company (defendant) protecting against loss from liens or encumbrances on their property's title. While attempting to refinance to avoid foreclosure, the Swansons discovered an unrecorded satisfaction of a lien held by John Jenkinson, which delayed the refinancing process; before refinancing could be completed, a trustee's sale occurred and the property was sold. The Swansons sued Safeco under the policy; the trial court granted them summary judgment on liability, then held a separate damages trial and calculated damages by simply subtracting the lien amount from the property's fair market value, and both parties appealed.