Lang v. Klinger

In Lang v. Klinger (1973) 34 Cal.App.3d 987, the defendant title insurance company in closing a sale of land negligently failed to discover a judgment lien against the property. When the judgment creditors commenced an execution sale of the property, the title company defendant attempted to avoid liability for potential loss under the sale and had the sale enjoined. In reversing the judgment of the trial court, the Court of Appeal applied Prentice and ordered defendant title company to pay the judgment creditor's attorney's fees and other expenses incurred in its defense. The court noted that ". . . although appellants were not parties to the escrow, they were injured by the attempted transfer to them of loss from the insureds, and they were compelled to become obligated for attorney's fees and expenses." (Lang, at p. 993.) It is apparent that the fact that the defendant title company had not committed a tortious act against the judgment creditor did not relieve them of their obligation to pay the judgment creditor's litigation expenses.