No. 82-1822.

709 F.2d 3 (1983)

Thomas Leroy JACOBS and Linda Lee Jacobs, Appellees, v. CHICAGO TITLE INSURANCE COMPANY, Appellant, and James A. Gondles, Jr., Administrator, d.b.n. Estate of Nicholas Kapnistos; Navy Federal Credit Union; William Frank Holden and Jean H. Holden, Defendants.

United States Court of Appeals, Fourth Circuit.

Decided June 8, 1983.

Attorney(s) appearing for the Case

Marshall H. Brooks, Arlington, Va. (Friedlander, Friedlander & Brooks, P.C., Arlington, Va., on brief) for appellant.

David D. Chapman, for appellees.

Before WINTER, Chief Judge, ERVIN, Circuit Judge, and ALDRICH, Senior Circuit Judge.

ERVIN, Circuit Judge:

This diversity action arose out of a real estate transaction in which all the parties— sellers, purchasers, real estate broker, mortgagee, and title insurer—used a single settlement attorney, who misappropriated the monies deposited with him.

The plaintiffs, Thomas and Linda Jacobs, sold a house in Arlington, Virginia, to defendants William and Jean Holden for $90,000, the closing taking place on August 1, 1979. Outstanding...

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