A Texas lending fund is taking First American Title to court, alleging the title insurance giant acknowledged coverage on claims - then did nothing about them.
Wildcat Lending Fund One, LP filed suit against First American Title Insurance Company and First American Title Guaranty Company on February 18, 2026, in the US District Court for the Eastern District of Texas. The case centers on three loan title insurance policies covering properties in Harris County, Texas, and what Wildcat describes as a prolonged failure to act on accepted claims.
The dispute traces back to August and September 2024, when Wildcat funded three loans to D & D Housing Solutions, LLC, secured by properties on Howton Street and Cheeves Drive in Houston. For each transaction, Wildcat obtained a TX T-2 Loan Policy of Title Insurance from First American, issued through Elite Title Settlement Services, LLC. The three policies carried a combined insured amount of $448,000.
The trouble, according to Wildcat, surfaced when it discovered that a competing lender - Capital Fund — held Deeds of Trust on all three properties. Those liens had been executed before Wildcat's but recorded afterward. Critically, each was tied to a Warranty Deed with Vendor's Lien, a mechanism under Texas law that gives the earlier-executed lien priority regardless of recording order. That left Wildcat's security interests in a subordinate position - precisely the kind of risk the policies were meant to cover.
The policies insured against what is known as Covered Risk 10: "the lack of priority of the lien of the Insured Mortgage over any other lien or encumbrance."
Wildcat says it promptly notified First American and filed claims under each policy. After issuing initial coverage determination letters on October 31, 2025, First American revisited its position following a December 1, 2025, letter from Wildcat's counsel. In January 2026, First American issued reconsideration letters for two of the three properties, expressly accepting coverage and stating it would "hire counsel to help resolve the issue."
That resolution, according to the filing, never came. Wildcat alleges that more than a year after it first submitted its claims, First American has not retained counsel, initiated proceedings to clear the liens, negotiated with Capital Fund, or made any payment. Under Section 3 of the policy conditions, a title insurer that concludes a defect is valid is required to take corrective action - whether that means clearing the title, indemnifying the insured, or securing a release. Wildcat contends none of those steps were taken.
The lawsuit brings claims for breach of contract, breach of the duty of good faith and fair dealing, and violations of Texas Insurance Code Chapter 541, which governs unfair settlement practices. Wildcat is seeking at least $448,000 in actual damages, along with consequential damages, treble damages, attorneys' fees, and interest.
No determination on the merits has been made. First American has not yet responded in court.
