Summary
The Supreme Court of Illinois held that a title insurer is not in the business of supplying information when issuing a title commitment or title insurance policy. Accordingly, the negligent misrepresentation exception to the Moorman economic loss doctrine did not apply, and First Midwest Bank could not recover purely economic losses in tort. The court affirmed dismissal with prejudice of the negligent misrepresentation claim.
Holdings
- A title insurer is not in the business of supplying information when it issues a title commitment or title insurance policy. A title commitment is a promise to insure a particular state of title and identifies limitations on the risk the insurer is willing to insure; it is not an abstract of title listing all defects, liens, and encumbrances.
- First Midwest failed to state a cause of action for negligent misrepresentation because the alleged information was supplied through a title commitment and policy, which did not bring Stewart Title within the negligent-misrepresentation exception to the economic-loss doctrine.
Questions Presented
- Whether a title insurer issuing a title commitment and title insurance policy is in the business of supplying information for the guidance of others in their business transactions, thereby falling within the negligent-misrepresentation exception to Illinois's economic-loss doctrine.
- Whether First Midwest adequately stated a negligent-misrepresentation claim against Stewart Title under section 2-615 of the Illinois Code of Civil Procedure.
Disposition
affirmed
Cases Cited (17)
- Vitro v. Mihelcic, 209 Ill. 2d 76, 282 Ill. Dec. 335, 806 N.E.2d 632 (2004)(followed)
- Jarvis v. South Oak Dodge, Inc., 201 Ill. 2d 81, 265 Ill. Dec. 877, 773 N.E.2d 641 (2002)(followed)
- Board of Education of the City of Chicago v. A, C & S, Inc., 131 Ill. 2d 428, 137 Ill. Dec. 635, 546 N.E.2d 580 (1989)(followed)
- Fox Associates, Inc. v. Robert Half International, Inc., 334 Ill. App. 3d 90, 267 Ill. Dec. 800, 777 N.E.2d 603 (2002)(followed)
- Neptuno Treuhand-Und Verwaltungsgesellschaft Mbh v. Arbor, 295 Ill. App. 3d 567, 229 Ill. Dec. 823, 692 N.E.2d 812 (1998)(followed)
- Brogan v. Mitchell International, Inc., 181 Ill. 2d 178, 229 Ill. Dec. 503, 692 N.E.2d 276 (1998)(followed)
- Moorman Manufacturing Co. v. National Tank Co., 91 Ill. 2d 69, 61 Ill. Dec. 746, 435 N.E.2d 443 (1982)(followed)
- Duhl v. Nash Realty Inc., 102 Ill. App. 3d 483, 57 Ill. Dec. 904, 429 N.E.2d 1267 (1981)(considered)
- Rozny v. Marnul, 43 Ill. 2d 54, 250 N.E.2d 656 (1969)(followed)
- Perschall v. Raney, 137 Ill. App. 3d 978, 92 Ill. Dec. 431, 484 N.E.2d 1286 (1985)(considered)
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