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Bothin (P) entered into a title insurance contract with California (D) for the purchase of lots 71 and 72 in the city and county of San Francisco. D issued the policy on December 13, 1900, and P took conveyance of the lots. The policy indemnified P from all loss and damage not exceeding $10,000 sustained by reason of defects in the title. Schedule B of the policy stated all the limitations of that insurance. When the policy was issued, there was on the record in the recorder's office a deed to trust to by which on Partridge conveyed to the trustees of the San Francisco Savings Union fourteen feet of the westerly portion of lot 71. Subsequent to the policy being issued it was discovered that the buildings on all the lots to the east and west of P were offset by 14 feet onto each other's property. Quiet title proceedings were initiated, and P prevailed on both of them. P obtained title to the identical equivalent of the property he bargained for but offset by 14ft. P claimed against the insurance policy in that he sustained damages by paying attorney fees and expenses in defending the actions and for depreciation in the property. The trial court gave that verdict to D and P appealed.

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