Title Company error?

[roberth5]

State is Michigan.

We (a poured wall basement company) had a lien on a property resulting from the builder not paying for the foundation we put in. Builder recently sold home and at the closing the Title Company, in error (by their own omission), gave the builder the funds due us for release of our (perfected and recorded) lien.

Title company now tells us that we need to work it out with the Builder on our own. Of course, Builder now wants a discount if we want to see any of our money for the basement we excavated and poured for him.

I understand that the lien is still in place, however, doesn't the title company have some sort of responsibility or obligation to assure that a lien holder gets paid at closing?

The Title Company communicated with us prior to closing about getting the lien released and to whom the funds to clear such lien were to be released to.

Is this why they (the Title Company) would have E & O insurance?

The Builder and the Title Company appear to be "lock step" against us in resolving the matter. Do we have grounds for a lawsuit? Is there a better way to resolve the problem?

Robert