Jury Awards Sciame $2.2 Million in Connecticut Superior Court for Title Defect on Hepburn Estate

NEW YORK, July 25, 2013 /PRNewswire/ -- A jury convened by the Superior Court in Hartford, Connecticut has ordered First American Title to pay 273 Water Street LLC and Fenwick Acquisition LLC, entities collectively owned by Frank Sciame, $2.2 million related to a title defect on Sciame's Fenwick beachfront estate, formerly owned by Katharine Hepburn.  Sciame has owned the property since 2004.  The jury's $2.2 million verdict represents First American Title's liability under Sciame's Title Policy to compensate for a title defect on the property discovered after purchase.

The property has 3.5 acres of beachfront land which includes 600 feet of frontage on the Long Island Sound.  When acquired, the dwelling on the property, although both historic and very well loved, was in a state of disrepair.  Recognizing the intrinsic value of this celebrity estate, Sciame undertook a massive restoration and renovation of the property, which included lifting the over 100-foot-long brick masonry residence five feet.  Mr. Sciame recently subdivided the property into three distinct lots and has plans for the addition of a guest house.

When Sciame first purchased the historic property, he purchased title insurance from First American Title Company in the amount of six million dollars with an escalator clause that gradually increased the amount of the policy to over nine million dollars at the time of the trial.  Shortly after purchasing the estate and commencing improvements, Sciame discovered that the Borough of Fenwick laid claim to a road that ran directly through the property. Although the discontinued road was not visible, it was recorded in the Borough's records.  After discovery, the LLC, on behalf of Sciame, immediately filed a claim of loss with First American Title in August 2007.  More than one year after receipt and acknowledgment of the Title Claim, First American Title provided written notice to Sciame accepting liability under the Title Policy, and issued a check in the amount of $17,000.  Mr. Sciame rejected the check which, in his opinion, in no way fairly compensated him for the title error.  Litigation ensued and the case went to trial. 

Even though Mr. Sciame was able to secure the property in question back from the Borough, after more than three weeks of trial, the jury returned a verdict ordering First American Title to pay Sciame $2.2 million in damages for the title defect – an astounding departure from the $17,000 that First American originally proffered as the settlement amount.  

"This $2.2 million judgment is a victory for all of us who hold property insurance," said Mr. Sciame, "It sends an unmistakable message that an insurer cannot make a title error on a policy holder's property and avoid compensating the insured; that it must meet its policy contract obligations in good faith and in full. I was fortunate to have the resources to get my day in court. I thank the jury for their thoughtful, focused and untiring deliberation. The People have spoken; and after five years, justice has finally been served."  

In June 2013, First American Title moved to set aside or reduce the $2.2 million verdict. On July 3^rd of this year, the Honorable Robert F. Vacchelli of Hartford Superior Court denied both motions. "The jury agreed that [First American Title] had failed to live up to its obligations under the contract," Judge Vacchelli said.  In reference to First American Title's plea for a new trial, Judge Vacchelli continued, "[First American Title] has no grounds to complain of an injustice on this point."  

To date, First American Title has yet to tender the amounts awarded by the jury.

SOURCE F. J. Sciame Development Co., Inc.