In Re Lowbet

 on November 26th, 2014

Corporate dissolution proceeding to rescind minority shareholder’s transfer of corporation’s principal asset consisting of real property as an unauthorized and for damages for fraud. Grantee asserted cross-claims against prior managing agent of the premises for indemnification of the purchase price and damages in the event the conveyance is rescinded. Motion to dismiss cross-claims for indemnification denied. Indemnification requires an independent duty to indemnitee. On a motion to dismiss it cannot be stated as a matter of law managing agent of the premises owed no duty to the contract vendee.

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In the matter of Joseph J.(Anonymous)

 on September 1st, 2013

Mortgagor’s guardian sought to consolidate the guardianship proceeding with mortgagee’s action to foreclose the mortgage and the guardian’s quiet title action to vacate the deed based on fraud and undue influence. The Appellate Division reversed the lower court’s order consolidating the three actions before the surrogates court. The mortgagor was declared incompetent after he granted the mortgage, after the foreclosure was commenced, and after he commeneced the quiet title. The foreclosure and quiet title actions therefore had no common questions of law and fact with the guardianship proceeding.

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Chicago Title Insurance Co., v. LaPierre

 on September 1st, 2013

Subrogation action by title underwriter under Executive Law Section 135 for notarial misconduct. Title underwriter sought to recover attorney’s fees expended on behalf of its insured to quiet the insured’s title after a deed on which the forged signature of the grantor was acknowledged by the defendant notary enabling the deed to be recorded. The lower court dismissed the action after trial holding the underwriter had to demonstrate its insured’s detrimental reliance on the forged signature to establish the notarial misconduct was causally related to injury. The firm appealed arguing executive law 5135 does not require detrimental reliance on the notary’s acts. The Appellate Division, Second Department, agreed reversing the trial court holding the causation element under Executive Law 135.

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