Case Name: In the Matter of the Application of The People of the State of New York, by George S. Van Schaick, as Superintendent of Insurance of the State of New York, Respondent, for an Order to Take Possession of the Property and Rehabilitate the New York Title and Mortgage Company. Mary Margaret Fried Mannix, Petitioner
Court: New York Supreme Court
Jurisdiction: New York
Decision Date: 1934-11-17
Citations: 153 Misc. 537
Docket Number: 
Parties: In the Matter of the Application of The People of the State of New York, by George S. Van Schaick, as Superintendent of Insurance of the State of New York, Respondent, for an Order to Take Possession of the Property and Rehabilitate the New York Title and Mortgage Company. Mary Margaret Fried Mannix, Petitioner.
Judges: 
Reporter: New York Miscellaneous Reports
Volume: 153
Pages: 537–538

Head Matter:
In the Matter of the Application of The People of the State of New York, by George S. Van Schaick, as Superintendent of Insurance of the State of New York, Respondent, for an Order to Take Possession of the Property and Rehabilitate the New York Title and Mortgage Company. Mary Margaret Fried Mannix, Petitioner.
Supreme Court, New York County,
November 17, 1934.
MacIntyre, McNally & Downey [James B. M. McNally of counsel], for the petitioner.
Harry Rodwin [Joseph J. Corn, Jr., Irving H. Jurow and Joseph Lapidus of counsel], for the rehabilitator, respondent.

Opinion:
Frankenthaler, J.
The respondent is not yet in default upon the guaranty issued to the petitioner. Although it seems to be not unlikely that a default will occur in the near future, it may not be held that such a default is inevitable as a matter of law. The very purpose of rehabilitation is to restore the guaranty company to a healthy condition which will enable it to meet its obligations. To hold that the entry of the order of rehabilitation amounts to an anticipatory breach of the company's obligations is to defeat this purpose. The motion to revoke the agency and for other relief is accordingly denied.