This stip mall in Hurricane is at the center of a professional negligence suit against a Putnam County attorney. First American Title Insurance Company alleges Alexander J. Ross caused them to lose nearly $500,000 when he failed to both gain approval of insuring claims over $250,000, and discover a 50-year-old .2 acre "outconveyance" that did not give the new owners clear title to the .6 acre property. (Photo by Lawrence Smith)

WINFIELD - A California insurance company is suing a Putnam County attorney to recoup losses it incurred from the attorney's failure to conduct a thorough title search, and obtain the sufficient amount of insurance for the purchase of commercial real estate in Hurricane.

Alexander J. Ross is named in a two-count professional negligence suit filed by First American Title Insurance Company. In its complaint filed on Nov. 19 in Putnam Circuit Court, the Santa Ana, Calif.-based firm alleges Ross not only failed to discover a 50-year-old conveyance on a .6 acre parcel of property being developed for a strip mall, but also obtain the additional insurance to cover the nearly $500,000 purchase price.

According to its complaint, First American contracted with Ross on April 27, 1998 to conduct title searches, and determine insurability of property First American would be covering in West Virginia. Ross is a sole practitioner with an office on Dudding Street in Hurricane.

Pursuant to their agreement, Ross was authorized to act on First American's behalf on purchases of property up to $250,000. The agreement also called for Ross to "conduct a search of all relevant public records affecting the real property at issue."

Among the cases assigned to Ross was insuring the purchase of a .68 acre lot on W.Va. 19 near the intersection of W.Va. 34 by M & M Management from Hurricane Sunoco and Service Center on Sept. 8, 2005. Hurricane Gateway Center LLC, M & M's parent company, was named as the insured on Oct. 30, 2006, and purchased the property to create its namesake strip mall which now includes Little Caesar's Pizza, Allcom and the offices of Paul Kirtley, a Nationwide Insurance agent.

However, Ross insured the property for full amount of the $495,000 purchase price. Pursuant to their original agreement, Ross was to obtain authorization from First American to insure for amounts exceeding $250,000.

Also, First American alleges Ross only conducted a title search going back 40 years instead of the customary 60. It was later discovered that one of the previous owners conveyed .2 acres of the property to the state of West Virginia through a corrective deed on July 18, 1958.

The "outconveyance" reduced the true acreage Hurricane Gateway purchased from .68 to between .452 to .498. The deed Ross prepared for Hurricane Gateway, First American alleges, did not account for the outconveyance.

The discrepancy was not found until almost a year later when First American says it was made aware of it by Hurricane Gateway's attorney on Nov. 21, 2007. Because the outconveyance was not discovered in Ross' title search, and he insured the $495,000 without their authorization, First American says they had to pay a claim Hurricane Gateway made against them.

The claim, records show, was settled in April.

Because Ross did not first obtain their consent to insure a purchase exceeding $250,000 or conduct a 60-year title search, First American alleges he committed both breach of agency agreement, and professional negligence. As a result, First American is asking it be awarded unspecified damages, attorney fees, court costs and interest.

First American is represented by Howard J. Schulberg and Mindi Scott with Goehring, Rutter and Boehm of Pittsburgh, Pa.

The case is assigned to Judge O.C. "Hobby" Spaulding.

Putnam Circuit Court, case number 09-C-506