Fanning v. Merchants National Trust & Savings Bank

THE COURT.

Plaintiffs brought this action to recover from defendant bank the sum of $6,500. The claim was alleged in separate counts, one for money had and received, the second for damages due to the alleged violation of an escrow agreement, and in addition equitable relief was sought, namely, reformation of the escrow agreement.

The trial court found for the defendant, and from the judgment the plaintiffs have appealed.

On September 25, 1925, plaintiff G-. J. Fanning and one Harry C. Otto entered into an escrow agreement with the defendant, which was as follows:

“Escrow Instructions. No. 680.

“Escrow Clerk, Florence K. Patton.

“Los Angeles, Cal., Sept. 25, 1925.

“Heilman Commercial Trust and Savings Bank:

“I will hand you $1,000.00 and Trust deed note for $6,500.00 which you are instructed to use, provided within

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30 days you can exhibit guarantee or continuation of Title Guarantee and Trust Company’s and/or Title Insurance and Trust Company’s guarantee of title on the real property in the city of Los Angeles, California, described as follows: North 50 feet of the south 100 feet of lot 17-18-19 of the Marlborough Tract, showing title vested in Henry C. Otto and Mabel Otto, his wife, as joint tenants, free of incumbrances except taxes for the fiscal year 1925-26.

“Conditions, restrictions, reservations and rights of way of record.

“Street bonds amounting to approximately $279.33;

“A mortgage or trust deed to be placed by the buyer in an amount not to exceed $25,000.00 ;

“A trust deed for $6,500.00 to be executed by the vestees in favor of G. J. Fanning and Estella Fanning, his wife, as joint tenants, due on or before six months after date with interest at 8% per annum to be paid at maturity.

“You are to secure assignment in blank of above trust deed note and hold in escrow together with $6,500.00, which I will hand you, which is to be held until the maturity of the note or until I instruct you to pay off the trust deed.