Centerpoint v. Commonwealth

Summary

The court held that the lender title-insurance policies covered only actual, unreimbursed losses from unpaid loans secured by subordinated deeds of trust. Because the loans were fully repaid, Commonwealth had no coverage obligation, the insureds suffered no recoverable bad-faith damages, and evidence of repayment was properly admitted because it was central to coverage and liability. The court vacated the court of appeals’ contrary rulings, affirmed the contract summary judgment and evidentiary rulings, and remanded for entry of summary judgment for Commonwealth on the bad-faith claim.