Colonial Banking Co. v. Mountain Title Co.

Plaintiff appeals from a judgment in favor of defendant in this action for negligence and breach of contract. Plaintiff asserts that defendant acted negligently and violated a promise when it recorded two deeds that plaintiff had accepted in lieu of foreclosure (the deeds in lieu). Defendant failed to notice that another trust deed conveying the property had been recorded before it recorded the deeds. The trial court held that, because plaintiff did not act reasonably to avoid the consequences of defendant’s negligence, it could not recover. We affirm.

In 1982 and 1983, plaintiff loaned money…