Missouri Vexatious Refusal to Pay Award Stands in Face of Insurance Companies Contingent Attack
Summary: Stewart Title Guarantee Company provided title insurance to Randy Spalding for nearly 420 acres in Cass County, Missouri in the amount of $1.7 million. It also provided title insurance coverage to Paul Estes for a one acre tract in the middle of the 428 acres, which Spalding and others were trying to develop. Stewart Title’s investigation showed that Estes had the superior claim, but the value assigned by Stewart Title Guarantee Company was $10,000.00 whereas Paul Estes demanded payment of $387,000.00. After a jury trial, the circuit court entered judgment in favor of Spalding in the amount of $1,100,000.00 on the policy, vexatious penalties in the amount of $110,150.00, and attorney’s fees in the amount of $81,000.00. The court rejected Stewart Title’s appeal and affirmed the judgment.