SAN FRANCISCO–(BUSINESS WIRE)–The law firm of Girard Gibbs LLP (www.girardgibbs.com/catitle.asp)
announces that a class action lawsuit pending against California’s
largest title insurers will proceed following the Court’s ruling on
defendants’ motion to dismiss. Specifically, the Court determined that,
while certain claims were dismissed, plaintiffs’ allegations of unlawful
conduct under California’s Unfair Competition Law could proceed against
certain title insurance companies.

The federal class action lawsuit, filed on behalf of consumers who
bought title insurance as part of a California residential real estate
purchase or refinance between 2004 and 2007, alleges that the defendant
title insurance companies paid illegal kickbacks and commissions to
agents and brokers in exchange for steering title insurance business to
them, and then passed off these expenses to consumers through higher
insurance premiums.

In an order issued by the Court on November 6, 2009, U.S. District Judge
Jeffrey White found as to defendants Fidelity Title, Commonwealth, Old
Republic, First American Title, and Chicago Title that “plaintiffs
have alleged facts demonstrating unlawful conduct” on the part of the
defendants as to violations of California unfair competition law Section
17200, and that the alleged illegal conduct was sufficient to show harm
to the plaintiff consumers because “but for the improper kickbacks they
would have paid less for title insurance.”

With respect to defendant companies Stewart Title, Lawyers Title, Ticor,
Ticor Florida, Security Union, National Title, United General, the court
dismissed all claims, noting that the named plaintiffs did not purchase
title insurance from those companies, but granted plaintiffs the
opportunity to amend the complaint by November 25, 2009 to add
additional plaintiffs who purchased title insurance directly from those
companies.

“We are pleased to have overcome this important hurdle in the lawsuit
and are eager to move forward in prosecuting our clients’ unfair
competition claims,” said interim class counsel for the plaintiffs,
Elizabeth Pritzker, “We believe that this is a highly significant case
for consumers’ rights, underscoring the importance of full disclosure as
to the sale of goods and services to consumers. We intend to prove that
these title insurance companies engaged in illegal schemes to enrich
themselves at a serious detriment and cost to consumers.”

More than 10 class action lawsuits were filed throughout California by
consumers who purchased title insurance from the named defendants. On
July 24, 2008, all of the lawsuits pending in federal court were
consolidated and coordinated for pre-trial proceedings before Judge
Jeffrey White in the United States District Court for the Northern
District of California. The coordinated case, 08-cv-1341, is known as In
re California Title Insurance Antitrust Litigation.

Consumers who purchased title insurance from Stewart Title Insurance
Company, Lawyers Title Insurance Company, Fidelity Title, Commonwealth,
Old Republic, First American Title, and Chicago Title and wish to learn
more about their rights in the lawsuit may contact Girard Gibbs LLP (www.GirardGibbs.com/catitle.asp)
or call 866-981-4800. Girard Gibbs LLP is one of the nation`s leading
firms in prosecuting complex litigation including class and mass action
cases.