Hmmm... well if they didn't issue a policy how could they have a loss?  If they don't have a loss, how can they sue anyone?  Normally, these types of problems are noticed when they have an insured refinance and realize that something was missed, and therefore, not cleared or excepted on their title policy.  When they file a claim against their title policy, the company that issued it checks to see who the examiner was.  It all rolls down hill.  That is why E&O insurance is so important.  A $45 search can come with thousands of dollars in liability.

Hope it all works out.

Best,
Robert A. Franco
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