query: title company sued for not following lenders instructions

The Closing Services Letter aka Closing Protecton Letter, commonly refered to as CPL - when issued - gives lenders additional title insurance protection over and including adherence to the lender's written instructions.

Note that I put the word written in bold.

If you are a mortgage lender and you want to create any kind of a legal obligation for following your instructions, first, put them in writing, including any amendments, even last minute changes.  Also, make sure you have a CSL or CPL in place.

If you are a title insurer, agent or company employee, make certain that you get any and all lender instructions in writing, even the last minute stuff.  E-mails and/or fax can suffice.  Make absolutely certain that you are reading  the instructions and if there is anything in there that you CAN'T or WON'T do, request an amendment BEFORE you close.