Not COVERED - TITLE Insurance issue- THOUGHTS appreciated to remedy

[Michael Morrongiello]

A friend bought a land lot in an area where this is a HOA - Home Owners Association for $100K from a land Flipper and DID obtained an OWNERS TITLE insurance policy. The HOA Dues were in arrears for the lot as they were not being paid.
He then started construction on a new home on the lot and has invested about $200K+ into the lot in the way of improvements. 

He received a call and correspondence from an individual who RIGHTFULLY claimed they had their title to the SAME land lot stolen from them by the land Flipper (who apparently fraudulently forged signatures transferring the land to them) and THEN SOLD it our friend.

Our friend file a claim with the TITLE Insurer who provided the OWNERS TITLE INSURANCE Policy to them for the $100K 
purchase of the land lot. The Title Insurer has agreed to PAY HIM back the $100K that was for the purchase of the land lot BUT 
they WILL NOT pay anything more (ignoring the improvements made to the lot). TAKE NOTE HERE !!! - ALL the Title Insurer will pay back to our friend is their purchase price for the Lot. 

The RIGHTFUL owner (who will get back his lot- now IMPROVED and valued > $300K+) is also now unwilling to sell the lot to him.
Thus He will LOSE this land lot and also now the $200K of additional improvements made to the land lot.

Any suggestions or courses of action or recourse that our friend might or could take to somehow RE-Obtain the land lot (now improved) ???

Eg. Can he possibly pay some of the HOA Dues and then bring an action against the ACTUAL legal owner of the lot in an attempt to FORCE them to SELL the lot to them? 

Other thoughts....

Michael Morrongiello - Sunvest 

[Tom Gimer]

Quote from @Ken M.:

Quote from @Michael Morrongiello:

Ken
Few Attorneys will be willing to take on a Title Company and their army of litigators.

PLUS its clear that the owners Title Insurance policy purchased ONLY by our friend insured was was conveyed and purchased (albeit fraudulently); AND that was only the Land Lot. 
The insurance willingly PAID on that claim. 

Trying to think outside the box here 

I dunno. I fought Fidelity Title (a multi billion dollar monstrosity) all the way to Federal District court. Only took 6 years. It may have changed the way they do business though. 
Fidelity flew in people from all up and down the coast for trial. 

I won.

There is no way to win this, unless there is a lawsuit.

Litigating with a title insurer that has disclaimed coverage? Sure... 

But litigating with a title insurer that has already paid policy limits? What is the point, there is nothing to win.