missed right of first refusal

[Edward Tierney]

as the representative of an estate, I sold two pieces of property in another state (MI) w/ my fathers former business partner. They sold part of the land 2-3 decades ago at which time there was placed a right of first refusal.  Through the years my father had tried to sell the property without any interest numerous times.  After his death, it was decided to sell the property.   I paid the title company for title search and title insurance.  At the time nothing unexpected occurred.  9 months after the sale of the property a neighbor to the properties came forward with notice that he was to have first right of refusal and states wants them.  the real estate agent notified me that it was identified by the title company but for some reason never told the relator, myself, or the right of first refusal party to clear before sale completed.  The owner of the title company( a lawyer), is stating that the estate should be responsible for any loss the title company has to transfer from the original buyers to the right of first refusal party($3500 in improvements).  What was the title search and title insurance for?  shouldn't the title company be at fault and cover the liability?  Would this be a tax write off by whichever party pays for that expense?