Between 2004 and 2007, plaintiffs M.J. Alonzo, Gloria Alonzo, Andrew Diamond, Fredrick D., Susan Hunt, Michael Nickolaus, Patricia Bellando-Roberts, Lothar Stephan and Anneliese Stephan, William Rhone Jr. and Christina Rhone, and Todd and Christie Youngdale, as well as hundreds of other investors, invested in approximately $73 million for 25 separate real estate development projects, all of which failed by early 2008. They alleged that a local real estate developer, Kelly Gearhart, helped James Hurst Miller, the president of Hurst Financial Corp., solicit real estate loans as part of a Ponzi scheme. Representing hundreds of investors through a bellwether trial process, the Alonzos, Diamond, Fredrick D., Hunt, Nickolaus, Bellando-Roberts (trustee for Phyllis Miller Revocable Trust), Mr. and Ms. Stephan (trustees of the Stephan Revocable Trust), Mr. and Ms. Rhone (trustees of the William Curtis Rhone Jr. Revocable Living Trust), and Mr. and Ms. Youngdale (trustees of the Youngdale Family Trust) sued Miller; Hurst Financial; Gearhart; real estate service companies Stewart Title Guaranty Co. and Stewart Title of California Inc.; Cuesta Title Co., which was believed to be an affiliate of Stewart Title; and Heritage Oaks Bank, which was a bank that loaned money to Gearhart for the development of one of the projects. The plaintiffs alleged that Stewart Title Guaranty, Stewart Title of California and Cuesta Title. were liable in connection with the failed investments made by Miller, Gearhart and Hurst Financial. They also alleged that the defendants’ actions constituted negligence, breach of fiduciary duty, financial elder abuse, fraudulent concealment, civil conspiracy, and aiding and abetting. Miller ultimately pleaded guilty in federal court to four counts of fraud and money laundering, while Gearhart was indicted on 16 counts of fraud and money laundering in connection with the misallocation of investor funds. Prior to trial, Heritage Oaks Bank agreed to settle with the plaintiffs, and the matter ultimately went to trial against Stewart Title Guaranty, Stewart Title of California and Cuesta Title. Plaintiffs’ counsel argued that Cuesta Title failed to properly perform its role as an escrow agent. Counsel contended that the employees and/or managers of Cuesta Title knew that Hurst Financial, Gearhart and Miller were defrauding investors and that it assisted them by misdirecting funds out of escrow that were specifically loaned for real estate construction, moving forward with questionable escrows containing contradictory instructions and eliminating valid liens through doubtful business practices. Plaintiffs’ counsel also contended that Stewart Title Guaranty and Stewart Title of California were responsible for Cuesta’s actions. Counsel for Cuesta Title argued that Cuesta Title properly performed its role as an escrow agent and that it had no knowledge of or involvement in any wrongdoing by Hurst Financial. Counsel for Stewart Title argued that Stewart Title Guaranty and Stewart Title of California had no knowledge of or involvement in any wrongdoing and that, as separate companies, they were not responsible for Cuesta’s actions., The investors sought recovery for their failed investments, plus emotional distress damages, punitive damages, and attorney fees. In the initial complaint, the roughly 500 investors stated that they were seeking $80 million in damages total damages.