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SEVEN G RANCHING CO. v. STEWART TITLE

No. 2 CA-CIV 3680.

128 Ariz. 590 (1981)

627 P.2d 1088

SEVEN G RANCHING COMPANY, an Arizona corporation; Redlog Investment Company, an Arizona corporation; and Heritage Building Corporation, an Arizona corporation, dba Twin Lakes Development Company, an Arizona joint venture, Plaintiffs/Appellees/Cross Appellants, v. STEWART TITLE & TRUST OF TUCSON, an Arizona corporation, individually and as Trustee under Trust No. 0284, Defendant/Appellant/Cross Appellee, and Charles Jackson, a married man, Defendant/Cross Appellee.

Court of Appeals of Arizona, Division 2.

Rehearing Denied April 15, 1981.

Attorney(s) appearing for the Case

Corey & Kittle, P.C. by Patrick J. Farrell, Tucson, for plaintiffs/appellees/cross appellants.

Molly, Jones, Donahue, Trachta, Childers & Mallamo, P.C. by Gary F. Howard, Tucson, for defendant/appellant/cross appellee.

OPINION

HOWARD, Judge.

The main issue in this appeal is whether a trustee is guilty of bad faith if it settles a lawsuit involving the trust property over the objection of the beneficiary.

We shall consider the operative facts in the light most favorable to upholding the judgment of the trial court. In 1976 Home Federal Savings & Loan Association (Home) sued to foreclose the mortgage it held on Lots 67 and 73 of Twin Lakes Estates. It became the...

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