Blair v. Guarantee Title Co., Inc.

284 P. 719, 103 Cal. App. 260, 1930 Cal. App. LEXIS 864
CourtCalifornia Court of Appeal
DecidedJanuary 18, 1930
DocketDocket No. 3917.
StatusPublished
Cited by14 cases

This text of 284 P. 719 (Blair v. Guarantee Title Co., Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blair v. Guarantee Title Co., Inc., 284 P. 719, 103 Cal. App. 260, 1930 Cal. App. LEXIS 864 (Cal. Ct. App. 1930).

Opinion

PRESTON (H. L.), J., pro tem.

This is an appeal by defendants Guarantee Title Company of Long Beach and I. H. Wright from a judgment entered against them upon a verdict of a jury in the sum of $1750, in an action for damages growing out of'a fraudulent real estate transaction.

The facts, as they existed at the time of the transaction hereinafter related, were briefly these: On June 16, 1925, Helen Wood Blair, the original plaintiff in this action, was residing with her husband at. Orange, California, but was the owner bf a house and lot at the corner of 17th and Rose Streets in the city of Long Beach, which she valued at $8,500, and which was encumbered by a mortgage in the sum of $5,000. The defendant A. E. Cronin was a real estate agent residing in Long Beach, and well acquainted with Mrs. Blair, having been her agent in one or two business transactions. Mrs. Blair had implicit faith and confidence in Cronin, and, at the time of the transaction hereinafter related, Mrs. Blair held a note against Cronin for the sum of $1,000 and, as security for the payment of said note, she held a bill of sale and the registration certificate for Cronin’s automobile. Victor Bellotti was another real estate agent residing at Long Beach and a friend of Cronin, but unacquainted with Mrs. Blair. The defendant and appellant Guarantee Title Company was a corporation engaged in the title and escrow business in Long Beach, California. The defendant and appellant I. H. Wright was *263 an employee of said Guarantee Title Company, and was its escrow officer.

On said sixteenth day of June, 1925, Cronin, in company with Bellotti, called upon Mrs. Blair at her home in Orange, and Cronin told her that they could exchange her equity in the Long Beach property for a ranch of 160 acres at Minot, North Dakota. Bellotti told her his father was the former owner of this ranch, and that it was a very valuable piece of property, and was clear of all encumbrances. Bellotti and Cronin also stated many details relative to the crops grown on the North Dakota ranch, the land’s adaptability, etc., and urged Mrs. Blair to make the exchange. Finally, upon the advice and at the urgent solicitation of Cronin, she agreed to the exchange—that is, she agreed to exchange her equity in the Long Beach property, and the $1,000 note and bill of sale and registration certificate, for a deed and a clear and unencumbered title to the 160-acre ranch in North Dakota. Cronin then presented to her a deed, which he had already prepared, for the Long Beach property with the name of the grantee left blank. Cronin and Bellotti then accompanied Mrs. Blair to a near-by notary public. The notary and Mrs. Blair, seeing there was no grantee named in the deed, insisted that a grantee should be inserted in the deed, but Cronin stated that he did not know the “initials of the owner of the North Dakota ranch,” and that it would be all right to execute the deed without naming a grantee; that it was a common practice to leave the grantee blank, etc. Mrs. Blair and the notary apparently accepted Cronin’s explanation as satisfactory, for she signed and acknowledged said deed and delivered it to Cronin, with the instructions to deposit it in escrow, to be exchanged for a deed and clear title to the North Dakota property. Cronin suggested that the appellant Guarantee Title Company be the escrow-holder, and Mrs. Blair consented to this suggestion. Cronin, on the same day, and after leaving Mrs. Blair, inserted his own name in the deed as grantee. On the same day, to wit, the sixteenth day of June, 1925, at 4:20 P. M., the deed was recorded in the recorder’s office of Los Angeles County, at the request of the appellant Guarantee Title Company, and contained printed instructions on the back thereof to return when *264 recorded to the Guarantee Title Company of Long Beach, California.

On the same day, Cronin executed a trust deed on said Long Beach property to secure a loan of $1700, in which the appellant Guarantee Title Company was named as trustee for John A. Benell, the beneficiary. This trust deed was acknowledged before a notary public, who was also at the same time an employee of, and in the office of, the Guarantee Title Company. Said trust deed was recorded at the same time as the deed from Mrs. Blair to Cronin, and also at the request of said Guarantee Title Company. Two days later, and on June 18, 1925, Cronin again called at the office of said Guarantee Title Company in Long Beach and there, in the presence of appellant I. H. Wright, the escrow officer of said title company, and upon a blank form furnished by Wright, prepared what purports to be an escrow agreement between Mrs. Blair and James I. Butterfield, the owner of the North Dakota ranch, which agreement provides in part: “We, the undersigned, buyer and seller, enter into the following agreement and hereby instruct the Guarantee Title Company of Long Beach, to carry out the conditions and agreements hereby entered into within 30 days from this date; and in the event the conditions of this escrow have not been complied with at the expiration of 30 days, you are instructed to complete same at the earliest possible date thereafter unless written demand shall have been made upon you by the party not in default, otherwise the same is automatically extended. Seller James I. Butter-field . . . Address, Long Beach City, who agrees to sell the buyer, Helen Wood Blair . . . Address, 504 W. Lemon, Orange, California, who agrees to purchase . . . 160 acres in North Dakota ... in exchange for house and lot, Cor. 17th and Rose, Long Beach, two lots in Bellflower, and Haynes sedan; subject to mortgage on house and lot of $5,000.00 . . . Interest, insurance and rents are to be prorated to date, close of escrow . . . The Guarantee Title Company of Long Beach is hereby instructed to draw the usual form of Grant Deed, Bill of Sale, from the Seller to the Buyer, and also as herein required and issue the title ... in the names of new owner on both properties . . . Further instructions are buyer is to deliver to A. E. Cronin pink slip, bill of sale and note and bill of sale Mrs, Blair to *265 Cronin. The seller agrees to pay all of- the taxes for the fiscal year of 1924 & 5 through this escrow if not already paid . . . The buyer and seller do each agree to pay their half of the escrow charges and expenses. It is agreed that this escrow and the papers and the funds deposited therein cannot be withdrawn by either party before the close of this escrow, and all charges paid without the written consent of both parties hereto. It is agreed that in case the seller performs his part of this agreement and the purchaser fails to make further deposit as herein required, the escrow deposit herein referred to shall be forfeited to the seller, and the Guarantee Title Company of Long Beach is hereby requested to pay same to the seller. It is also agreed that the Guarantee Title Company of Long Beach shall not be responsible for adjustments in rents, interest, insurance premiums or commissions, unless the correct amounts have been furnished the Guarantee Title Company of Long Beach by the interested parties.”

To this agreement, Cronin, also in the presence of Wright, signed the name of “Helen Wood Blair, by A. E. Cronin,” and forged the name of “James I. Butterfield,” the owner of the North Dakota ranch.

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Cite This Page — Counsel Stack

Bluebook (online)
284 P. 719, 103 Cal. App. 260, 1930 Cal. App. LEXIS 864, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blair-v-guarantee-title-co-inc-calctapp-1930.