Alameda County Title Insurance v. United State Fidelity & Guaranty Co.

DOOLING, J.,

pro

tem.

This is an appeal by a notary public and her bondsman from a judgment for damages caused by her attaching her certificate of acknowledgment to a certain deed of reconveyance purporting to be, but not in fact, signed by one R. Hummel.

On October 27, 1925, the title to the real property in question was in Daisy Grisham. On that date Daisy Grisham executed and delivered two deeds of trust of such real property to secure the payment by her of certain sums of money, to wit: A first deed of trust to R. Hummel and A. Schomig as trustees, to secure the payment to Hilda Hummel of the sum of $2,200, and a second deed of trust to secure the payment to A. Schomig of the sum of $1450. On June 14, 1926, Daisy Grisham having in the meantime married, she and her husband conveyed the property covered by the aforesaid deeds of trust to Ramos Bros., Incorporated, subject to the existing encumbrances. Thereafter proceedings were taken to sell the property under the second deed of trust, which resulted in four separate deeds

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being successively made by the trustees to L. Schlegel as grantee. Thereafter and on March 4, 1927, L. Schlegel executed and delivered a deed to said property to D. D. May-brook. On June 3, 1927, Maybrook commenced an action against Ramos Bros., Incorporated, to quiet title to said property, and secured a judgment quieting her title in that action, which was allowed by Ramos Bros., Incorporated, to become final.

On October 19, 1928, the purported reconveyance of the first deed of trust was recorded, with the certificate of acknowledgment executed by appellant McDermott attached thereto,- upon the wrongful execution of which this action is based. On November 9, 1928, Maybrook borrowed from Harriet A. Foulkes $2,200 and gave as security a deed of trust upon the property here in question. At that time respondent herein, relying on the purported reconveyance attested by the wrongful certificate of acknowledgment of appellant McDermott, executed a policy of title insurance insuring Harriet A. Foulkes that title to said property was vested in Maybrook.

On April 1, 1930, an action was commenced by R. Hummel as trustee, and Hilda Hummel to have the purported reconveyance bearing the certificate of acknowledgment of appellant McDermott declared a forgery and of no effect and to determine that the deed of trust herein first referred to was in full force and effect. Judgment followed in that action as prayed and on February 9, 1931, the property was sold under said first deed of trust, leaving no surplus after the claim of Hilda Hummel was satisfied. Plaintiff and respondent herein paid to Harriet A. Foulkes the amount of her loss under its policy of insurance and commenced this action as her assignee and subrogee.