Fifth Third Mortgage Co. v. Chicago Title

After it was discovered that a title agent and straw buyer defrauded a lender, the lender went to its title insurer for coverage. The underwriter denied the claim. In the suit that followed, the underwriter argued that it was not required to indemnify the lender because if the lender had better underwriting practices, it would have discovered the scam. The case eventually went before the 6th U.S. Circuit Court of Appeals.