KEYSER – First Peoples Community Federal Credit Union is suing a law firm after it claims it breached its contract with the credit union.


Trozzo Lowery & Weston LLC and Seth B. D'Atri was also named as a defendant in the suit.


On Oct. 28, 2010, Nathan D. Rice and Dana C. Rice obtained a mortgage loan from the credit union to enable them to purchase real property in Mineral County from Ray L. George Jr. and Kelly A. George, according to a complaint filed last month in Mineral Circuit Court.


The credit union claims prior to making the mortgage loan to the Rices, it engaged the services of Trozzo Lowery & Weston to perform a title search on the property, which was conducted by D'Arti. The firm has offices in Cumberland and Hagerstown, Md.


The title search failed to uncover a properly recorded and indexed deed of trust, recorded on Aug. 20, 2008, in which the Georges had granted a security interest in the real property to Ray George's parents, according to the suit.


The credit union claims because the deed of trust was not satisfied out of the proceeds of the mortgage loan and was not released, it has priority over the Rice deed of trust, which was recorded on Nov. 3, 2010, contrary to the expectations and beliefs of the credit union.


On April 23, 2013, Trozzo informed the credit union it did not have a first priority lien securing the mortgage loan because the George deed of trust had been missed when the title search had been conducted, according to the suit.


The credit union claims the fair market value of the real property is insufficient to satisfy both deeds of trust.


The defendants were negligent and caused the credit union to suffer harm, according to the suit.


The credit union claims the defendants breached their contract with the credit union.


The credit union is seeking compensatory damages. It is being represented by R. Terrance Rodgers of Kay Casto & Chaney PLLC.


Mineral Circuit Court case number: 15-C-33

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