Santa Ana-based First American Corp. said last week a federal appeals court reversed $32.4 million in punitive damages against one of the title company’s subsidiaries.
The 6th U.S. Circuit Court of Appeals reversed an early 2005 verdict in the case of Chicago Title Insurance Corp. vs. James A. Magnuson, First American said in a Securities and Exchange Commission filing.
The appeals court also ordered a new trial.
The lawsuit was filed by Chicago Title, a unit of First American’s rival Fidelity National Financial Inc., which moved from Irvine to Florida in 2003.
The lawsuit charged First American with violating a non-competition agreement and “intentional interference with contract.”
During 2005, First American recorded a reserve of $10 million in connection with the case. The company said it is “evaluating the appropriateness of this reserve in light of the decision of the court.”
First American and its subsidiaries have been named in various class action lawsuits related to its title operations in recent years.
Last year, another lawsuit filed by Fidelity National saw a jury award the competitor $41.3 million. First American is appealing that case.
,Mark Mueller
