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Keywords

settlementplaintiffdefendantdamagesattorneytrustforeclosureliensequitable relief
plaintiffattorneyappellantliensequitable relief

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Savings Banks Retirement System v. Clarke, 258 Md. 501, 265 A.2d 921

Facts

Arthur H. White and his wife purchased Lot No. 6 in Prince George's County from Rollin Hills Apartments, Inc., which had a prior deed of trust recorded against the property. At the time of settlement, the Whites and the Savings Banks Retirement System advanced funds to discharge the prior lien, believing they were receiving clear title. However, after the sale, it was discovered that a subsequent deed of trust had been executed by Rollin Hills, which the plaintiffs claimed was fraudulent. The plaintiffs had hired expert title attorneys to review the land records, but the existence of the subsequent lien was not reported to them until foreclosure proceedings began.

The Amended Bill of Complaint, filed on October 21, 1969, alleges the following: 1. Arthur H. White and his wife, Mary E. White (two of the plaintiffs below and two of the appellants before us) own certain property in Prince George's County, described as Lot No. 6 in Block 1 in the subdivision known as ‘Beacon Heights,’ a plat for the subdivision being recorded among the Land Records of Prince George's County in Plat Book WWW-35, Plat No. 82.

Issue

Did the plaintiffs rely on the alleged misrepresentation that the title to Lot No. 6 was free of liens, and does this reliance affect their ability to seek equitable relief?

Did the plaintiffs rely on the alleged misrepresentation that the title to Lot No. 6 was free of liens, and does this reliance affect their ability to seek equitable relief?

Rule

A necessary element for relief against fraud is that the person allegedly defrauded must have relied upon the false representation.

One of the required elements for relief against fraud is that the person allegedly defrauded relied upon the false representation.

Analysis

The court found that the plaintiffs did not rely on the alleged misrepresentation regarding the title being free of liens because they had engaged their own expert title attorneys to investigate the land records. The attorneys failed to report the existence of the lien, and the plaintiffs did not discover it until foreclosure proceedings were initiated. Therefore, the court concluded that the alleged misrepresentation did not cause the plaintiffs' damages, as they had taken steps to verify the title independently.

In the present case, it appears on the face of the Amended Bill of Complaint that the plaintiffs did not rely upon the alleged misrepresentation that the title to Lot No. 6 was free of liens, but, on the contrary, employed their own expert title attorneys to examine the land records of Prince George's County ‘and to report all liens to Plaintiffs.’

Conclusion

The court affirmed the lower court's decision to sustain the demurrer, concluding that the plaintiffs' amended bill of complaint did not state a cause for equitable relief due to their lack of reliance on the alleged misrepresentation.

Order of December 24, 1969, affirmed, the appellants to pay the costs.

Who won?

Defendants prevailed because the court found that the plaintiffs did not rely on the alleged misrepresentation, as they had employed their own expert title attorneys to investigate the property.

The court found that the plaintiffs did not rely on the alleged misrepresentation regarding the title being free of liens because they had engaged their own expert title attorneys to investigate the land records.

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