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FIRST AMERICAN TITLE INSURANCE CO. v. ACTION ACQUISITIONS, LLC

No. 1 CA-CV 06-0782.

169 P.3d 127 (2007)

FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation, Plaintiff/Counter-Defendant/Appellee, v. ACTION ACQUISITIONS, LLC, an Arizona limited liability company; Free for Now, LLC, an Arizona limited liability company, Defendants/Counter-Claimants/Appellants. Action Acquisitions, LLC, an Arizona limited liability company; Free for Now, LLC, an Arizona limited liability company, Third-Party Plaintiffs/Appellants, v. Capital Title Agency, Inc., an Arizona corporation, Third-Party Defendant/Appellee.

Court of Appeals of Arizona, Division 1, Department D.

October 30, 2007.

Attorney(s) appearing for the Case

Ramras Law Offices, P.C. by David N. Ramras, Ari Ramras, Phoenix, Attorneys for Plaintiff/Counter-Defendant/Appellee.

Jackson White, P.C. by Eric M. Jackson, Christine Farnsworth, Mesa, Attorneys for Third-Party Defendant/Appellee.

Berens, Kozub, Lord & Kloberdanz, PLC by Daniel L. Kloberdanz, Scottsdale, Attorneys for Defendants/Counter-Claimants/Appellants.

OPINION

JOHNSEN, Presiding Judge.

¶ 1 In this case we address the meaning of a form exclusion in a title insurance policy insuring title to a home that was purchased at a sheriff's sale for $3,500, less than three percent of the value of the equity in the home. After the superior court set aside the purchase because the price was so low that it "shock[ed] the Court's [conscience]," the insureds sought reimbursement from the title insurer for the fair...

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