ADRIAN LUPU v. LOAN CITY, LLC; OCWEN LOAN SERVICING, LLC OCWEN LOAN SERVICING, LLC, Third-Party Plaintiff v. STEWART TITLE GUARANTY COMPANY, Third-Party Defendant; Stewart Title Guaranty Company Appellant (17-1944), Ocwen Loan Servicing, LLC, Appellant (17-2024), 903 F.3d 382

Summary

HOLDINGS: [1]-Under a real estate title insurance policy, the insurer did not have a duty to defend the insured against claims of a borrower/mortgagor because in Pennsylvania, to identify a covered claim, a court properly applied the "four corners" rule whereby potentially covered claims were identified by comparing the four corners of the insurance contract to the four corners of the complaint, and the underlying complaint, which challenged the MERS System and the post-closing mortgage transfers, did not present any claim under the title policy; [2]-However, the title policy also stated that the insurer would not also defend non-covered claims in the action, and as there was at least one covered claim in the litigation underlying the parties' coverage dispute, the insurer was obligated to defend this claim only.