[WSBARP] litigation guarantee coverage question

Tue Aug 22 14:26:04 PDT 2023

I wonder if it's possible to have two parcels listed in the litigation
guaranty? I've never tried that, but it seems appropriate here, since the
ownership of both parcels is critical to the lawsuit.

Also, doesn't a litigation policy really just cover the lawyer for any
issues that result from the guaranty not naming all of the vested owners?
Almost like an E&O policy - you rely on the guaranty for the names of the
defendants, and if your client doesn't get complete relief because there
should have been another named defendant and you incur a loss (through your
client's malpractice claim, most likely), the policy kicks in. I've only
ever had litigation guaranties that name me or my firm as the "assured" vs.
the client.

*Spencer A. W. Stromberg*
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On Tue, Aug 22, 2023 at 12:46 PM Eric Nelsen <eric at sayrelawoffices.com>
wrote:

> Thanks Greg! That’s my thought also, but what about the language in the
> policy that says it’s intended to cover litigation relating to the
> described land, but the described land is actually the neighbor’s property,
> which isn’t at issue? Because the encroachment is onto my client’s property.
>
>
>
> Or am I reading too much into that restriction, and the policy will still
> cover because the neighbor’s property benefits from the improvements that
> encroach onto my client’s property?
>
>
>
> Sincerely,
>
>
>
> Eric
>
>
>
> Eric C. Nelsen
>
> Sayre Law Offices, PLLC
>
> 1417 31st Ave South
>
> Seattle WA 98144-3909
>
> 206-625-0092
>
> eric at sayrelawoffices.com
>
>
>
> *From:* wsbarp-bounces at lists.wsbarppt.com <
> wsbarp-bounces at lists.wsbarppt.com> *On Behalf Of *Gregory L. Ursich
> *Sent:* Tuesday, August 22, 2023 12:12 PM
> *To:* WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
> *Subject:* Re: [WSBARP] litigation guarantee coverage question
>
>
>
> Eric: Order the litigation guarantee on the neighboring property, to
> verify ownership to name the correct trespasser.  But, do not name any
> lienholders like banks. -Greg
>
>
>
> [image: Logo, company name Description automatically generated]
>
> *Gregory L. Ursich | Shareholder*
>
> Skyline Tower, Suite 1500 | 10900 NE 4th Street | Bellevue, WA 98004
>
> P: 425.450.4258 | F: 425.635.7720
>
> vCard <http://www.insleebest.com/uploads/vcards/gursich.vcf> | website
> <www.insleebest.com> | gursich at insleebest.com
>
>
>
>
>
> This electronic mail transmission is privileged and confidential and is
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>
> *From:* wsbarp-bounces at lists.wsbarppt.com <
> wsbarp-bounces at lists.wsbarppt.com> *On Behalf Of *Eric Nelsen
> *Sent:* Tuesday, August 22, 2023 11:54 AM
> *To:* WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
> *Subject:* [WSBARP] litigation guarantee coverage question
>
>
>
> I have generally used litigation guarantees as a method of determining the
> proper defendants when I’m pursuing an adverse possession claim. That is,
> my client has encroached on a neighboring parcel, so I need to confirm who
> has interests in that property.
>
>
>
> Now, though, I’m doing a trespass and ejectment claim against an
> encroaching party, who owns the neighboring property. My client is being
> encroached upon, but defendant hasn’t encroached long enough to establish
> adverse possession.
>
>
>
> My dilemma:
>
>
>
> If I order a litigation guarantee on my client’s property which is
> encroached upon, then the guarantee will simply confirm that my client is
> the vested owner. That doesn’t help me confirm the identity of the proper
> defendant.
>
>
>
> If I instead order a litigation guarantee on the neighboring property, it
> will confirm the identity of the encroaching party, BUT it appears to me
> that the litigation guarantee won’t actually provide any insurance coverage
> for my client. Part of the guarantee states:
>
>
>
> “This Guarantee is restricted to the use of the Assured solely for the
> purpose of providing information to facilitate the commencement of the suit
> at law…*affecting the land described in Schedule A*." But the land
> described in Schedule A is the *neighboring* parcel, not my client's
> parcel which is being encroached upon.
>
>
>
> Am I doing this wrong? Is there another type of litigation guarantee that
> covers when the insured is being encroached upon and is seeking to identify
> the defendant(s) who own(s) the neighboring parcel?
>
>
>
> Sincerely,
>
>
>
> Eric
>
>
>
> Eric C. Nelsen
>
> Sayre Law Offices, PLLC
>
> 1417 31st Ave South
>
> Seattle WA 98144-3909
>
> 206-625-0092
>
> eric at sayrelawoffices.com
>
>
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