Pryor Cashman obtained a $1 million summary judgment award, plus nearly $200,000 in prejudgment interest, on behalf of its client against Commonwealth Land Title Insurance Company in the case of Larry Levi v. Commonwealth Land Title Insurance Co., No. 09 Civ. 8012 (SHS), before the U.S. District Court for the Southern District of New York (Stein, J.).

The case involved a claim by Pryor Cashman’s client, Larry Levi, that a $1 million mortgage he had purchased upon a building in Harlem had been fraudulently executed and assigned by an individual named Henry Vargas. Mr. Vargas was incarcerated in 2009 in connection with a scheme to impersonate property owners and to mortgage their property fraudulently. Mr. Levi had insured his mortgage with Commonwealth under a policy that, among other things, covered Mr. Levi for losses caused by fraud, forgery, or impersonation.

Commonwealth initially contended that it had no obligation to pay Mr. Levi for his loss until Commonwealth could first mitigate its payout and recover from Mr. Vargas and other allegedly liable third parties. Commonwealth later asserted that certain policy exclusions applied. Pryor Cashman commenced a diversity action in federal court challenging each of Commonwealth’s positions and, following the completion of discovery, moved for summary judgment.

In a decision entered on September 30, 2011, Judge Sidney Stein rejected Commonwealth’s defenses and agreed with Pryor Cashman’s arguments that Commonwealth was liable to cover Mr. Levi’s loss. Judge Stein further awarded Mr. Levi 9% statutory prejudgment interest dating back two years, totaling another $184,000.  A copy of Judge Stein’s decision can be read by clicking here.

Mr. Levi was represented by Pryor Cashman Litigation Group partner William Charron and associate Sarah Bell.