Taussig v. Chicago Title & Trust Co., No. 9479.

CourtUnited States Courts of Appeals. United States Court of Appeals (7th Circuit)
Writing for the CourtKERNER and SPARKS, Circuit , and SWYGERT
Citation171 F.2d 553
PartiesTAUSSIG et al. v. CHICAGO TITLE & TRUST CO.
Docket NumberNo. 9479.
Decision Date22 January 1949

171 F.2d 553 (1948)

TAUSSIG et al.
v.
CHICAGO TITLE & TRUST CO.

No. 9479.

United States Court of Appeals Seventh Circuit.

December 31, 1948.

Rehearing Denied January 22, 1949.


Thomas Dodd Healy, Harold Stickler, Edward Atlas, and Daniel M. Healy, all of Chicago, Ill., for appellants.

Harold L. Reeve, Elmer M. Leesman, J. L. Higley, and Charles F. Grimes, all of Chicago, Ill., for appellee.

Before KERNER and SPARKS, Circuit Judges, and SWYGERT, District Judge.

SPARKS, Circuit Judge.

This is an appeal in a third party proceeding involving a title guaranty policy on real estate which had belonged to a group of testamentary trust estates. By the original proceeding, a beneficiary of one of the trusts, Mrs. Saxelby, asked for a declaratory judgment relating to certain transactions by which her brother, appellant Taussig, a co-trustee, became the sole beneficiary of Trust No. 4954 to which the property was conveyed, and as such, the owner of that property which had belonged to the main trusts. By her bill of complaint, Mrs. Saxelby further prayed that the American National Bank and Trust Company, trustee of Trust No. 4954, be directed to convey title to the property to a substitute trustee to be appointed by the court upon removal of Taussig and his co-trustee, also named as a defendant

171 F.2d 554
in the main proceeding, and for an accounting

Prior to hearing on the main complaint, Taussig and the American Bank obtained leave to file a third-party complaint against the Chicago Title and Trust Company, appellee here, setting up the fact of execution by it of an "Owner's Title Guaranty Policy" by which it guaranteed title to the property involved in the main proceeding, and praying that, in the event the court adjudged that his title failed, the Title and Trust be held liable under the policy, and demanding judgment for any loss that might be adjudged against him and the Bank in favor of the plaintiff in the main proceeding.

After full hearing in both proceedings, the court rendered separate findings of fact and conclusions of law in both the main proceeding and the third-party proceeding on the same day. By the former he found that Taussig, a lawyer, by a complex series of transactions we need not detail here, became the owner of the property here involved without the expenditure of any funds of his own, and that the trust estates of which he was trustee were divested of the ownership which they formerly held, all of which was done without notice to the beneficiaries of the trusts; that in these dealings with the trust estates Taussig did not act in good faith, and in fact acted in positive bad faith as indicated by the facts of his knowledge of the law, his concealment of facts known to him, his use of a nominee and of the secret trust, and his failure to give notice to his beneficiaries. He concluded that the complainant was entitled to restoration of the property to the trust estate, removal of Taussig and his co-trustee, appointment of a successor trustee, conveyance by the American Bank as trustee of No. 4954 to such successor trustee of the trust property without expense to...

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11 practice notes
  • Murnan v. Stewart Title Guar. Co., No. 1:08cv2.
    • United States
    • United States District Courts. 4th Circuit. United States District Court (Eastern District of Virginia)
    • 30 Octubre 2008
    ...fraudulent or otherwise ineffective, in which event a different result might obtain. 31. See Taussig v. Chicago Title & Trust Co., 171 F.2d 553, 555 (7th Cir.1948) (title insurance policy exclusion barred coverage for "liens ... created, suffered, or assumed by the party guaranteed......
  • National Mortg. Corp. v. American Title Ins. Co., No. 7815SC587
    • United States
    • North Carolina Court of Appeal of North Carolina (US)
    • 19 Junio 1979
    ...890 (1973); Feldman v. Urban Commercial, Inc.,87 N.J.Super. 391, 209 A.2d 640 (1965); Taussig et al. v. Chicago Title & Trust Co., 171 F.2d 553 (7th Cir. 1948); First Nat'l Bank & Trust Co. v. New York Title Insurance Company, 171 Misc. 854, 12 N.Y.S.2d 703 The precise meaning of th......
  • Keown v. West Jersey Title & Guaranty Co.
    • United States
    • Superior Court of New Jersey
    • 28 Enero 1977
    ...in holding the insurer not liable based upon the intentional misconduct of the insured. In Taussig v. Chicago Title & Trust Co., 171 F.2d 553 (7 Cir. 1948), the insured was cotrustee of a group of trust estates owning certain real estate. By a series of complex transactions the insured ......
  • Keown v. West Jersey Title & Guaranty Co.
    • United States
    • New Jersey Superior Court – Appellate Division
    • 7 Julio 1978
    ...there were encumbrances from the financing of them and insureds by deed assumed all encumbrances); Taussig v. Chicago Title & T. Co., 171 F.2d 553 (7 Cir. 1948), cited in Annotation, 98 A.L.R.2d 527, 528 (1964) (insured cotrustee had acted in [390 A.2d 719] bad faith and managed to beco......
  • Request a trial to view additional results
11 cases
  • Murnan v. Stewart Title Guar. Co., No. 1:08cv2.
    • United States
    • United States District Courts. 4th Circuit. United States District Court (Eastern District of Virginia)
    • 30 Octubre 2008
    ...fraudulent or otherwise ineffective, in which event a different result might obtain. 31. See Taussig v. Chicago Title & Trust Co., 171 F.2d 553, 555 (7th Cir.1948) (title insurance policy exclusion barred coverage for "liens ... created, suffered, or assumed by the party guaranteed......
  • National Mortg. Corp. v. American Title Ins. Co., No. 7815SC587
    • United States
    • North Carolina Court of Appeal of North Carolina (US)
    • 19 Junio 1979
    ...890 (1973); Feldman v. Urban Commercial, Inc.,87 N.J.Super. 391, 209 A.2d 640 (1965); Taussig et al. v. Chicago Title & Trust Co., 171 F.2d 553 (7th Cir. 1948); First Nat'l Bank & Trust Co. v. New York Title Insurance Company, 171 Misc. 854, 12 N.Y.S.2d 703 The precise meaning of th......
  • Keown v. West Jersey Title & Guaranty Co.
    • United States
    • Superior Court of New Jersey
    • 28 Enero 1977
    ...in holding the insurer not liable based upon the intentional misconduct of the insured. In Taussig v. Chicago Title & Trust Co., 171 F.2d 553 (7 Cir. 1948), the insured was cotrustee of a group of trust estates owning certain real estate. By a series of complex transactions the insured ......
  • Keown v. West Jersey Title & Guaranty Co.
    • United States
    • New Jersey Superior Court – Appellate Division
    • 7 Julio 1978
    ...there were encumbrances from the financing of them and insureds by deed assumed all encumbrances); Taussig v. Chicago Title & T. Co., 171 F.2d 553 (7 Cir. 1948), cited in Annotation, 98 A.L.R.2d 527, 528 (1964) (insured cotrustee had acted in [390 A.2d 719] bad faith and managed to beco......
  • Request a trial to view additional results

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