In response to the second portion of your post I must say that is the most ridiculous thing I have ever heard.  In response to the first, here is a possible scenario:
As a vendor manager I sent the search to the vendor I normally use, but the vendor never got the search, somehow it slipped through the cracks.  The vendor then says sorry but it will not be going to that county for 2 more days.  The VM says ok, I can not tell my client I am an idiot I screwed up it is going to take a couple more days so I will send the search to another vendor(you).  You say pay your bill first.  The individual on the other end of the order has no power to pay a bill and the manager says $26 is not worth my time to fix accountings mistake, just find someone to do this search and I will take care of the payment issue later once I have resolved the immediate issue of keeping my client happy.  Not that they are trying to rip you off for $26 but they have several hundred search orders in their system in different states with different issues that need to be dealt with.  One $26 invoice does not consitute a major issue.  If this happens every month then I understand your complaint.
Matthew DeLand
Vendor Manager
Industry Partners Title