Title Guarantee & Trust Co. v. Smith

215 A.D. 448, 213 N.Y.S. 730, 1926 N.Y. App. Div. LEXIS 10991

This text of 215 A.D. 448 (Title Guarantee & Trust Co. v. Smith) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Title Guarantee & Trust Co. v. Smith, 215 A.D. 448, 213 N.Y.S. 730, 1926 N.Y. App. Div. LEXIS 10991 (N.Y. Ct. App. 1926).

Opinion

Burr, J.

The action is on a written contract. The first cause of action alleges the contract signed by the defendant, a copy of which is attached to the complaint. The contract provided in part: “ The undersigned having applied to the Title Guarantee & Trust Company for the loan above mentioned [$165,000], and the same having been accepted on the terms herein stated, in consideration thereof the undersigned personally agrees to pay the fees specified in this application [$3,300] * * * and the Company’s regular charge for survey and preparation of papers. * * * The undersigned agrees to pay said fees, charges and disbursements whether the title is accepted or declined, this agreement being in no way conditional or dependent upon a loan being made. * * * ”

Plaintiff, after pleading the contract, alleged, in substance, that it had been at all times ready thereafter to make the loan, but defendant refused to take it.

In plaintiff’s second cause of action it pleaded an account stated based on this contract.

Defendant pleaded no affirmative defense but set up by his answer a general denial of the allegations of the complaint. He admitted by not denying the allegations that plaintiff is a corporation and that plaintiff and defendant entered into the written contract, copy of which is attached to the complaint.

Plaintiff moved for summary judgment under rule 113 of the Rules of Civil Practice upon the pleadings and supporting affidavits. These are affidavits made by officials and employees of the plaintiff from which it appears that plaintiff caused the title to the property in question to be examined, that plaintiff was at any time after July 23, 1924, ready, able and willing to advance or to have advanced the sum of $165,000 as a first mortgage upon the premises described in the contract, and to do all the other things [450]*450required by it to be done by the terms and provisions of the contract and that on September 27, 1924, the plaintiff wrote defendant as follows: «o . 97 1Q9,

«o . 97 1Q9, “ Title No. 919215 Sept 27 ’ 1924‘

Mr. Morris Smith,

e /o Mr. Bernard London,

“ 220 Broadway,

“ New York:

“ Dear Sir.— Last June you asked us to examine title for a loan of $165,000 on premises on Fort George Avenue. The title was duly examined, papers drawn and our money has been reserved for the closing. Our fees amount to $3300.

We understand that the transaction is held up indefinitely because there is some suggestion that this property be taken by the City for a park. We would like to have our bill paid for searching the title and underwriting the loan.

We are sending our bill in full but it is understood that if you pay us on or before the 10th day of October, a reduction of $1,000 may be made in the charges as submitted in recognition of prompt payment.

« Yours very truly,

“ (Signed) HORACE ANDERSON,

“ H.A. /S.

Secretary.”

Anderson, the plaintiff’s secretary, further says in his affidavit:

The defendant did not accept the offer of the reduced bill mentioned in said letter, and as a matter of fact he did not reply to me to that letter.

I am informed and believe that the public records show that the real property in question and mentioned in said agreement is part of the property described in a certain resolution adopted by the Board of Estimate and Apportionment of the City of New York, on October 17th, 1924, whereby it was resolved that proceedings be instituted pursuant to provisions of the Greater New York Charter to condemn the real property in question for the addition to Highbridge Park. Such resolution provided that title should become vested in the City of New York on the date of the filing of the order of the Supreme Court granting the application to condemn the real property in question.

“ I am informed and believe that the public records further show that such order of the Supreme Court granting such application was filed in the office of the Clerk of this Court on March 6th, 1925, and on that date title to the real property in question, which included that mentioned in the contract, vested in the City of New York.

[451]*451It would seem, therefore, that the defendant is not able now to carry out, or cause to be carried out the agreement in question.” McManus, bookkeeper of plaintiff, says in his affidavit:

“ On December 17th, 1924, I personally deposited in a post office box in the Borough of Manhattan, City of New York, the original bill or statement of account of which the annexed is a carbon copy. The original bill was enclosed in what is known as a ‘ peek-a-boo envelope ' with the address showing on the outside of the envelope. The defendant had at that time an office at' room 710 at 320 Fifth Avenue, New York City, and as I am informed and believe he was served with the summons and complaint in this action at that address.”

Bill annexed to foregoing affidavit:

Billhead of

“ Title Guarantee and Trust Company,

“ Real Estate Title Insurance.

■ “ Banking, Trusts.

“ 176 Broadway.

“ Capital and Surplus $21,000,000.

“ No. 919215

“ New York, Dec. 17, 1924.

“ Room 710,

“ 320 5th Ave.,

“ New York City.

“ Due to the Company as follows:

“6/11 /24 Fee for Services in connection with premises:

“ W/S Ft George Ave. 405 No. St. Nicholas Ave. ... 3,300 00

“ Drawing Building Loan Agreement.............. 10 00

“ “ Bond & Mortgage...................... 7 50

“ “ Consent............... 5 00

“ “ Guarantee............... 3 00

“3,325 50”

Other affidavits showing performance by plaintiff of its contract with defendant are made by Cornwell, employed in the law department of plaintiff, who says:

“ Upon the completion of the examination of the title subsequent to the application dated June 11th, 1924, herein, the report of title came to me in the usual course.

I then wrote and sent on July 23rd, 1924, to Mr. London [defendant's attorney] a letter of which the following is a copy:

[452]*452' ' “ ‘Julv 23rd, 1924.

“ ‘ Title Number 919-215 “ ‘ Mr. Bernard London,

220 Broadway,

“ ‘ New York City.

Dear Sir.— Our examination of title to premises fronting on Fort George Avenue and St. Nicholas Avenue, has been completed, and title has been certified in Agreeable Realty Co., Inc., free and clear of mortgage encumbrances.

“ ‘ Searches have been made for taxes and all liens to date and report unpaid taxes 1924 — first half — $164.40. If this has been paid the receipt should be submitted at closing, but no payment should be made prior thereto.

“ ‘ We have approved title subject to these facts and based upon a description which we understand has been agreed upon for your mortgage, a copy of which is forwarded herewith.

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Related

Title Guarantee & Trust Co. v. Wesolick
115 A.D. 608 (Appellate Division of the Supreme Court of New York, 1906)
Poland Export Corp. v. Marcus
204 A.D. 302 (Appellate Division of the Supreme Court of New York, 1923)

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Bluebook (online)
215 A.D. 448, 213 N.Y.S. 730, 1926 N.Y. App. Div. LEXIS 10991, Counsel Stack Legal Research, https://law.counselstack.com/opinion/title-guarantee-trust-co-v-smith-nyappdiv-1926.