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NEW JERSEY TITLE INS. CO. v. CAPUTO

723 A.2d 994 (1999)

NEW JERSEY TITLE INSURANCE COMPANY, Plaintiff-Appellant, v. Joseph C. CAPUTO and Trump Taj Mahal Associates (d/b/a Trump Taj Mahal Casino Resort and improperly pled as Taj Mahal Hotel and Casino), Defendants, and New Jersey National Bank, successor in interest to Corestates Bank, Constellation Bank, and the National State Bank, Defendant-Respondent.

Superior Court of New Jersey, Appellate Division.

Decided February 19, 1999.

Attorney(s) appearing for the Case

James M. Cutler, for plaintiff-appellant (Stern, Lavinthal, Norgaard & Kapnick, attorneys, Livingston; Walter E. Thomas, Jr. and Mr. Cutler, of counsel; Mark A. Trudeau, Franklin, on the brief).

John D. North, Woodbridge, for defendant-respondent (Greenbaum, Rowe, Smith, Ravin, Davis & Himmel, attorneys; Mr. North and Jodi L. Rosenberg, Iselin, on the brief).

Before Judges BAIME, A.A. RODRIGUEZ and KIMMELMAN.

The opinion of the court was delivered by BAIME, P.J.A.D.

Joseph Caputo, a lawyer, embezzled loan funds that had been deposited in his attorney trust account at National State Bank (National Bank).1 The loan funds had been earmarked for the payment of mortgages on properties purchased by Caputo's clients. New Jersey Title Insurance Company (New Jersey Title) paid the mortgages and sued National Bank, contending that the bank had acted...

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