Radovanov (P) purchased an apartment building. At closing, P was assured by the sellers that building code violations had been corrected. Unknown to P, a lawsuit was pending involving the violations. Land Title Co. of America (D) issued title insurance and made no mention of the pending lawsuit. P sued D because of their failure to mention the lawsuit. D argued that building ordinance violations were excluded from coverage in the policy under Exclusion 1 of the policy; it denied coverage for the effects of building ordinance violations. The court found for D. P appealed.

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