Burkhardt v. City National Bank

The plaintiffs are making monthly mortgage loan payments to the defendant bank. Included in the mortgage contract are paragraphs requiring monthly payments into an escrow account to enable the bank to pay, once a year when they become due, the city and county taxes and the insurance premiums. The proofs showed that the bank did not attempt to predict increases in those expenses. Instead, it utilized an accounting method treating the three expenses separately and requiring the mortgagor to pay into the account each month a sum equal to 1/12 the amount last paid for insurance plus 1/12 of the…