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Business Associations Keyed to Coffee, 9th Ed.
Fairway Development Co. v. Title Insurance Co.
Citation:
621 F. Supp. 120 (1985)Facts
The original partnership, Fairway Development I, consisted of three partners: Thomas M. Bernabei, James V. Serra, Jr., and Howard J. Wenger. This partnership was formed on October 15, 1979, and each partner contributed equally to the capital and shared equally in profits and losses. The defendant, Title Insurance Company of Minnesota, issued a title guarantee policy to this partnership. On May 20, 1981, Bernabei and Serra sold and transferred their respective one-third interests to Wenger (the remaining partner) and James E. Valentine (a new partner), forming what the court referred to as Fairway Development II. This new partnership filed an amended partnership certificate rather than a new one. Later, Fairway Development II discovered an easement granted to East Ohio Gas Company that was not listed as an exception in the title policy and filed a claim against the insurance company for breach of contract, seeking both compensatory and punitive damages.
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