Ryan

An action brought by the assignee of City Title Insurance Company, a corporation, hereinafter called the company, to recover from defendant bank the amount of a check drawn by the company upon the bank and paid by the latter, it being alleged that the name of the payee indorsed thereon was a forgery. The facts are as follows:

On December 8, 1926, W. G. Miller, a real estate broker doing business under the name of W. G. Miller Realty Company, through his agent, H. T. Hunt, applied to the company for a policy of title insurance upon two parcels of real property in San Francisco. The company caused the records to be examined and on December 9, 1926, issued its preliminary report to Miller showing the title to be vested in Mary Smith, an unmarried woman, subject to certain bankruptcy proceedings in the matter of Mary Smith doing business under the name of H. L. Smith, a judgment against a person of the same name and an insanity proceeding in which the commitment of one Mary Smith to the asylum at Napa was shown. The company demanded and was furnished affidavits purporting to be signed by Mary Smith and sworn to before a notary public, stating that affiant was not a party to the…