T
risura Specialty Insurance Company is seeking a federal judge's ruling on whether it must defend a California real estate firm in a lawsuit over a disputed property sale.

    The insurer, which provided Excel Realty & Mortgage, Inc. with a commercial policy starting March 2022, claims it may not be liable for the firm's legal costs or any potential payouts due to possible exclusions and conditions in the policy. Trisura is asking the court to clarify whether its policy requires it to defend or indemnify Excel Realty & Mortgage, Inc., as well as several individuals involved in the dispute.

    The case centers on a lawsuit filed by Kim Champlin against Marilyn Marquis and others over a home sale gone wrong in Pleasanton. Marquis has since filed a cross-complaint against Excel Realty & Mortgage, Inc. and other parties, drawing the real estate firm's insurance policy into the fray.

    Trisura's move to federal court highlights the importance of understanding professional liability policies and their limitations. The outcome could shape how insurers handle similar claims in the future, particularly those involving alleged misrepresentations in property sales.

    While no court has yet decided who is right or wrong, the decision will be closely watched by insurers, brokers, and risk management professionals involved in real estate and mortgage businesses. As the case unfolds, insurance insiders across the country will be paying attention to learn how similar disputes might play out in their own portfolios.