THE Ticor Title Insurance Company is asking the federal court to dismiss Cyfred Ltd.’s claims for a $5 million indemnity, saying the insurance firm should neither take the fall nor defend the developer for its own fault.
“Ticor denies any duty to defend Cyfred because Cyfred’s own wrongdoing created the disputes with homeowners-plaintiffs,” Ticor said in a motion for summary judgement filed Tuesday by its lawyer, David Dooley.
In 2009, the Guam Supreme Court upheld a trial court’s decision ordering Cyfred to pay $580,000 for the installation of a sewer system for Gill Baza Subdivision homeowners. The decision stemmed from a class action filed by lead plaintiffs Kini and Iowanna Sananap.
Following the high court’s ruling, Cyfred sued Ticor alleging breach of contract, fraud and racketeering for denying coverage for the Sananap case and for “not promptly acting to undertake defense.”
Ticor, however, said it is not duty-bound to defend Cyfred for its own failure to install sewer systems at the subdivision it had developed.
“The Guam Supreme Court has confirmed nothing in the Sananap action that could possibly trigger title insurance coverage for Cyfred,” Ticor said.
Insurance company won’t pay for Cyfred’s defense
- Friday, 17 Aug 2012 03:30am
- BY MAR-VIC CAGURANGAN | FOR VARIETY
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