Dohrmann Co. v. Security Savings & Loan Ass'n

This appeal presents questions relating to (1) the validity of a tax sale of personal property as affected by the notice given thereof, and (2) the effect of an erstwhile junior encumbrancer’s tax purchase of the property.

Appellant Dohrmann Co. (hereinafter “plaintiff”) brought the action, for declaratory relief, against Security Savings and Loan Association (“Security”) and Edwin Meese, Jr., as tax collector of the County of Alameda. The complaint sought, among other things, a declaration that plaintiff held a valid security interest in certain personal property, as the unpaid conditional seller thereof and “prior in right to any and all claims of de fendants.” The trial court entered judgment on the pleadings adverse to plaintiff, who appeals.

The Complaint

As will appear, the questions presented require close examination of the allegations in the complaint. We summarize them, and quote them in part, as follows;

The Edgewater Inn, a hotel, was constructed on land held by Stockman under lease; he owned “the leasehold and hotel buildings.” In 1963, he executed and delivered to Security (1) his promissory note evidencing a loan from Security in an unspecified amount,…