Independent B. & L. Ass'n v. Real Estate Title Co.

Citations

• 156 Pa. 181
• 27 A. 62
• 1893 Pa. LEXIS 1327

Syllabus

<p>Agency — Fraud of agent — Satisfaction of mortgage — Equity.</p> <p>A real estate title company is liable for the loss of a fund received by the solicitor of the company while acting within the apparent scope of his duties, and embezzled by him.</p> <p>A client of a real estate title company made to the company two applications for loans, one to be used in paying off the mortgage of a building and loan association on her Thompson street house, aud the other to be secured by a mortgage on a house on Morris street which she proposed to purchase. The company was to do the conveyancing. To secure possession of the Moms street house, she paid to the solicitor of the company the portion of the purchase money which she was to pay in cash. The company, in settling with the vendor, did not apply the cash thus received by the solicitor, but used the money applied for on the Thompson street application. Subsequently the solicitor notified the treasurer of the building and loan association to come for settlement, and, when he did so, gave him fifty cents and requested him to go to the recorder’s office and satisfy the mortgage of the association. When this was done, the solicitor gave the treasurer his personal check, aud requested him to hold it for three days before presenting it, which was done. When the cheek was presented, there were no funds to meet it. On a hill in equity for the cancellation of the entry of satisfaction: Held, (1) that a court of equity had jurisdiction, notwithstanding the additional remedy at law by assumpsit; (2) that the action of plaintiff’s treasurer in accepting the solicitor’s personal check and holding it for three days did not, under the circumstances, discharge the title company from liability; (3) that the solicitor was acting within the apparent scope of his duties in the transaction, and (f) that plaintiff was entitled to the relief sought.</p>