McIlwain

Title Guarantee & Trust Co. v. McIlwain

Good Law
73 F.2d 754·1934 U.S. App. LEXIS 2804
United States Court of Appeals for the Ninth CircuitNovember 13, 1934No. 7416California2,699 words

Opinion

Lead Opinion

Garrecht, J.

This is an appeal from a judgment of the District Court awarding appellee damages because of negligence of appellant in making an improper reconveyance under a deed of trust.

On August 11, 1927, Ladd W. Hoffman executed a promissory note in favor of the American Mortgage Company in the sum of $10,000. To secure the payment of the note he executed a trust deed, by the terms of which certain real estate was conveyed to appellant as trustee. In effecting this transaction Mr. Hoffman and the American Mortgage Company used the forms of note and trust deed prepared and issued by appellant, which contained all the usual and customary terms and stipulations, and particularly the said deed of trust contained the following paragraph:

“Upon payment of all sums secured hereby and surrender to the trustee, for cancellation, of this deed of trust and the note secured thereby, trustee, upon receipt from the beneficiary of a written request reciting the fact of such payment and surrender, shall reeonvey, without warranty, the estate then held by trustee, and the grantee in such reconveyance may be described in general terms as 'the person or persons legally entitled thereto’, and trustee is…

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