U.S. Fifth Circuit victory in high-stakes title-insurance dispute.

U.S. Fifth Circuit victory in high-stakes title-insurance dispute.

When a venture-capital firm brought a high-stakes lawsuit against a national title insurer to recover an eight-figure loan balance, the title insurer retained Flanagan Partners to defend it. The backdrop was a loan to a newly refurbished paper mill. According to the venture-capital firm, an alleged defect in the mortgage securing its loan caused the borrower's financial demise. The venture-capital firm argued that, but for the alleged defect, the borrower would have received additional working capital, prospered, and paid off the roughly $10 million loan. After extensive discovery and cross-motions for summary judgment, the federal district court dismissed the venture-capital firm's "loan loss" claim in its entirety. The venture-capital firm then appealed to the U.S. Fifth Circuit. After full briefing and oral argument, the Fifth Circuit unanimously affirmed in a published opinion. The court later denied a petition for rehearing. In re West Feliciana Acquisition, L.L.C., 744 F.3d 352 (5th Cir. 2014).