Page:The Green Bag (1889–1914), Volume 23.pdf/84

 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