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Aspen, Colorado – For many years this property was vested in Riverbank, a Colorado corporation. Several years ago Riverbank conveyed the property to High Western Development, another corporation, and First American insured a first deed of trust given by High Western for $380,000. Months later the insured lender was named in a lawsuit filed by one Dieter, who claims to be the true owner of the property and is suing to quiet title. |
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| Golden Opportunity: This property, thought James, was his for the taking. |
It seems that Dieter is the former president and principal shareholder of Riverbank. In 1984 Riverbank was suspended by the Colorado Secretary of State for failure to file required annual reports.
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Now meet James. The opportunity-seeking James compares names of suspended corporations with county assessor's tax rolls. After figuring out this property was vested in the legally-defunct Riverbank, James formed a new corporation called "Riverbank" and recorded a deed from his "Riverbank" to High Western, which he also controls. Then High Western mortgaged the property. This taking of Dieter's property is, of course, no more legal than stealing a bicycle. First American paid the policy amount of $380,000, and has incurred legal expenses of more than $53,000 pursuing recovery. |
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| Pitkin County Courthouse: Where Dieter dumped the deed of trust. |
In any land transaction there is risk of dealing with one who is an imposter, legally incompetent or unauthorized to act. This is a basic risk covered by title insurance. Attorney opinion letters usually do not address this risk when individuals are involved, and where the party is a business entity they must be carefully read for assurance that signers have legal authority.
Typically there is absolutely no protection against this risk under other forms of title assurance.
