Bulletin: SLS00258

Date:
August 19, 2005
To:
All Affiliated Offices
RE:
Unauthorized Comments
Dear Associates:

A recent Texas case involving a title insurance company highlights the importance of maintaining cordial neutrality when interacting with all parties to a transaction.  In that case, the title company was held responsible for statements purportedly made by its officer asserting that a lien would be filed on a property and advising a participant to "walk away from the project."  The jury awarded the plaintiff $1.81 Million dollars in compensatory damages and $4 Million dollars in punitive damages.

This bulletin is a reminder that all Associates must refrain from making any comments - negative or positive - regarding the merits of any transaction.  Associates should also avoid statements unequivocally predicting the future.  Unless specifically instructed, no one is authorized by the Company to give any financial, legal or tactical advice to transaction participants regarding the desirability of a transaction.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
NL000040 Closing Instructions\Closing Representation
Underwriting Manual:
5.16 Escrow Closings
 
TX 5.16 Escrow Closings
Exceptions Manual:
None
Forms:
None