Austin v. American Surety Co. of New York

Judgment having been rendered in favor of the plaintiff, against the defendant as surety of one B. F. McKee, a real estate broker, in an action sounding in fraud, said surety appealed.

It is undisputed that McKee was a regularly licensed realtor, that he was employed as such and engaged in selling upon installments acreage known as Ramola Farms, that he obtained from the respondent a contract to purchase three acres therein, on account of which she exchanged other realty and a promissory note, which was paid; that thereafter he obtained from the respondent other real property upon an agreement that he would dispose of it for her, and that he converted the proceeds of sale and of respondent’s check to his own use. Excerpts from her testimony reveal that McKee promised respondent that “if I would give up my contract he would sell the lot for me and get my money out of the lot, and that he would sell those four acres without any added expense beside the $175 which I gave him, and he would get my money, the $1456 out of the Santa Monica lot. . . . He gave me two contracts which I signed, for my equity in my Santa Monica lot. . . . This lot that I turned over to him was the last Santa…