Wurzl

This is an appeal by Roger Wurzl and Cora V. Wurzl, Trustees of the Roger E. Wurzl and Cora V. Wurzl Trust (collectively referred to as appellants), from a judgment denying quiet title to appellants and in favor of respondent Federal Deposit Insurance Corporation (FDIC). The trial court found that appellants and the FDIC were each innocent victims of fraud perpetrated by defendant Fannie Holloway and concluded that appellants’ action for quiet title against the FDIC was barred by the doctrine enunciated in D’Oench, Duhme & Co. v. F. D. I. C. (1942) 315 U.S. 447 [ 86 L.Ed. 956 , 62 S.Ct. 676 ] as well as 12 United States Code section 1823 (e) (hereafter, section 1823). In addition, the court found that as between the two innocent parties, appellants had the better chance of preventing the loss as contemplated in Civil Code section 3543. We affirm.

Facts

The Roger E. Wurzl and Cora V. Wurzl Trust owned real property located at 1243 Vista Court, Glendale, California. On July 8, 1990, appellants, as trustees, listed the property for sale through John Telfezian of Century 21—Christopher & Associates.

Defendant Fannie Holloway (Holloway) made an offer to buy the property on…