62
The Green Bag
we find a clause to the effect that “no
claim shall arise under the policy until after final judgment is rendered under which the assured is actually dispossessed or evicted from the property.” Conse quently, should a question as to title arise, or if suit is brought by some one claiming an interest in the property, the present title insurance companies
The Torrens Law in New York, as amended, having gone into force and effect only recently, as a consequence there have been few applications. But several titles have been registered al ready under this law and 1 ot a single title has been rejected, and other regis
trations are now pending in the counties of New York, Kings, Queens, Nassau, Suffolk, Richmond, Westchester, Rock
cannot be compelled to pay at once to the policy holder any loss or damage which he has sufiered, but are allowed
land, etc. The constitutionality of the law has been upheld by a number of
to defend the action in court. The litigation may continue for years, and in the meantime the policy holder
Justices of the Supreme Court and on two occasions by the unanimous de cision of the Appellate Division in the
cannot sell his property or give a good and marketable title thereto, and fre quently, not being able to wait until the termination of the suit he is compelled
to sell the property at a sacrifice, or accept such smaller amount as the title company may be willing to pay him as a purchase price. Even after the termination of the suit, the title com pany may still avoid payment to the
policy holder by this provision which is inserted in the policy of that com pany, which implores the public to “shift the risk to us,” as follows:—— In every case this company may demand a valuation of the insured estate or interest, to be made by three arbitrators or any two of them, one to be chosen by the insured and one by this Company, and the two thus chosen selecting an umpire, and then no right of action shall accrue until thirty days after such valuation shall have been served upon this Company . . . provided, also, this Com pany shall always have the right to appeal from any adverse determination, etc.
Second Department.
(Dufl’y v. Shirden
et al., 120 N. Y. Supp. 1122.) case
some
twenty-five
In this
separate
and
specific objections to the proceedings to register title were raised by the
attorneys for the Title Guarantee and Trust Co. in Brooklyn. All these ob jections were overruled by Mr. Justice Crane at Special Term, and his decision
was unanimously affirmed by the Appel ate Division. It goes without saying that those who attack the law should assume the burden of proof to establish its un constitutionality, and until this is done the law, as it stands on the statute books, must be regarded as constitu tional. There have been so many de cisions in its favor, as above set forth, that it would seem to be an almost
hopeless task now on the part of the old title insurance companies, or any one else, to have the law set aside or declared
If, in the meantime, mortgages on
null and void. In order to cast discredit on the
the property fall due, it is impossible
Torrens System, however, and to delay,
to have the same extended, or procure
new mortgage loans during the pendency
hinder and impede the operation of the title registration law, in a last desperate
of the suit, or while a lis pendens is on file. All this is obviated by the Torrens
effort, one of the old title insurance companies has adopted peculiar methods
System, which vests the title “once for
which can
all."
mend able, proper or professional. Abut
hardly be termed com
