New England Federal Credit Union v. Stewart Title Guarantee Co.

**New England Federal Credit Union v. Stewart Title Guarantee Co.** This case involved a dispute over title insurance coverage when property development violated local zoning rules. New England Federal Credit Union had title insurance from Stewart Title Guarantee Company for a property. When the property turned out to have subdivision permit violations that weren't properly disclosed, the credit union claimed the insurance should cover this problem. Stewart Title refused to pay, arguing the violations weren't covered under their policy. The Vermont Supreme Court sided with the credit union. The court ruled that zoning and permit violations do count as "encumbrances" that title insurance should cover. The court also found that since these violations could have been discovered through proper public record searches, Stewart Title couldn't use the "public records exception" to avoid paying the claim. While this case was primarily about insurance coverage rather than employment, it matters for workers in the title insurance and real estate industries. It clarifies that title insurance companies have broader responsibilities to cover permit and zoning violations than they might claim. Workers in these fields should understand that thorough title searches must include checking for all types of permit compliance issues.