Foley v. German Lehigh Building Ass'n

Citations

• 69 Pa. Super. 213
• 1918 Pa. Super. LEXIS 359

Syllabus

<p>Building and loan dissociations — Principal and agent — -Embezzlement by conveyancer of association — Judgment.</p> <p>Where a building and loan association requires a prospective borrower to make his application through one of several conveyancers designated by the association, and requires that the money shall be paid out only on his recommendation, and it appears that a conveyancer selected, embezzles money paid to him by the association to satisfy a mortgage on the borrower’s property, the loss will fall on the association, and not on the borrower, inasmuch as the conveyancer is the agent of the association.</p> <p>In such a case where the association pays to the designated conveyancer the sum of one thousand dollars, to be secured by a third mortgage on the borrower’s property, and of this sum the conveyancer retains $698.39 to pay off a second mortgage on the property, and pays over the balance to the borrower, but subsequently embezzles the amount which ho had retained, and the borrower, after judgment had been entered on the bond accompanying the third mortgage and after her property has been swept away by a sale under the second mortgage, sues the association in assumpsit for the exact sum which the conveyancer retained she can recover; and she may do this without proceeding to have the judgment on the bond opened, and reduced by whatever sum was found to be due from the association to her. When she makes an effort to collect her judgment, the court may reduce it by whatever amount may be found due upon the judgment on the bond against her.</p>