A Very Confusing Letter From Fidelity National Title's Third Claims Counsel

On July 10, 2009 I received this letter:

So until year's later I understood this letter I interpreted this letter to say that although the Parcels were excepted in Schedule B they were still treating this as a covered loss and they were using the value determined in the DIV appraisal prepared by the appraiser from Boise Idaho.  I CERTAINLY DID NOT GET THAT THE EASEMENTS WERE VALID.  And my attorney did not understand this letter as saying that the easements were valid.  Only after reading the internal communication three years later did I get that the easements ran with the land.  What a shock !!!!!  

In fact I disagreed with the statement that the Parcels 2 through 5 were excepted from coverage by Schedule  B.  Per Part One of Schedule B, number 3 states that "easements, liens or encumbrances, or claims thereof which are not shown by the public records" are excepted from coverage.  And I was provided the recorded documents by the title officer in Napa prior to the original purchase.