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Title insurance : the insurers win the case


Charles Mathieu

11 June 2019 11:30

The supreme Court has put an end to the dispute between insurance companies securities to the Chambre des notaires du Québec and the Barreau du Québec.

The highest court in the land refused to hear the appeal of two professional orders, who, twice, had been rejected in court, then they blamed the insurers titles of acts reserved to notaries and lawyers.

The parties were opposed before the courts since 2011, when a first appeal was filed. The refusal of the supreme Court, therefore, comes to put an end to eight years of legal proceedings. The insurers were represented by FCT Insurance and Group Chicago. Of the judges of the superior Court and the Court of appeal had given a reason for insurance companies in 2017 and 2018, respectively.

Automated Services disputed

The dispute concerned the legality of certain additional services provided in addition to the title insurance companies referred to. In fact, the services referred to are those of the “treatment of data and documents concerning legal acts and other relevant documents during a mortgage refinancing,” one can read in the judgment of 2017 to the judge Chantal Chatelain. The dispute was also about the acts of radiation.

Other facts were alleged against the insurers, as the advice related to the audit of securities and property expenses. The courts have rejected these claims each time.

“A real difficulty to resolve”

In the end, the Court gave reason to the insurance companies, explaining that the documents in question were blank forms, filled in an automated manner. “The task performed by title insurance companies is more administrative in nature and routine and, most of the time, automated, in order to merge the information related to a particular transaction in form “, explains Ms. Chatelain.

However, the Court argues that the steps that have been undertaken by the Chambre des notaires and the Barreau du Québec were important and legitimate. “The Court is of the opinion that the main motivation that led them to institute the present action is to find a helpful answer to a legal question which represents a real difficulty to resolve, and this, in the fulfilment of their mission of protecting the public. “

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