Proposed Title Reinsurance Agreement Imposes No Fiduciary Duty

COLUMBUS, Ohio - A joint venture agreement between a title reinsurer and certain title agencies that does not comply with the Ohio statute of frauds does not impose any fiduciary duties on the parties, a majority of the Ohio Supreme Court has ruled. Olympic Holding Co. v. ACE Ltd., et al., No. 08-0200 (Ohio Sup. Ct.).

In a May 7 opinion, the majority ruled that ACE Capital Title Reinsurance Co.'s breach of a promise to sign the proposed venture agreement with Olympic Holding Co. does not remove the agreement from the signing requirement of the statute of frauds.

ACE approached …