Plaintiff Muirhead had lost his investment in a real estate transaction as the result of a prior lien on the property.
The courts ruled that Watson (and others in similar situations) was not liable for mistakes based on professional opinions.
[4] As a result of the case the Pennsylvania legislature included a section allowing for the incorporation of title insurance companies in The General Corporation Act passed an 1874.
[1][5] Joshua H. Morris, a conveyancer in Philadelphia, and several colleagues met on 28 March 1876 to incorporate the first title insurance company to address the issue.
Martha Morris, Joshua's aunt, purchased the first policy, valued at $1,500, on 24 June 1876 to cover a mortgage on a home on 718 North 43rd Street in Philadelphia.