A real estate company was unable to demonstrate that its lawsuit seeking $1.9 million in coverage for a title defect limiting access to its industrial property in San Diego belonged in federal court.
The title defect allegedly restricted access to the property, prompting the company to file a claim with its title insurance provider. When the claim was not resolved to their satisfaction, the company initiated legal proceedings seeking $1.9 million in coverage.
The case raised jurisdictional issues, with the court questioning whether the matter should be heard in federal or state court. The real estate company argued that the case belonged in federal court, but failed to provide sufficient evidence to support this assertion.
As a result, the court’s ability to hear the case in federal court was challenged. The outcome of this jurisdictional dispute could significantly impact the company’s ability to pursue its claim for insurance coverage related to the alleged title defect.
