A. J. Nord v. Marvin Madison McIlroy

I. Background

In 1933, one C. R. Bell gave to the Continental National Bank of Chicago, Illinois a deed to a one-half undivided interest in certain real property situate in Kern County, California. Although there is a dispute between the parties herein as to whether the conveyance was intended to be absolute or only of a security interest, the referee has found that the deed to the bank was by way of security only. In 1946, appellee herein acquired the other undivided one-half interest in the property and from that date remained in exclusive possession of the premises. In 1956, the bank conveyed its interest by quitclaim deed to A. J. Nord, one of appellants herein.

In January, 1958, appellee filed a petition under Chapter XI of the Bankruptcy Act, 11 U.S.C.A. § 701 et seq. Appellee then filed petitions for orders to show cause, alleging that appellants claimed to own an interest in the property in question. The orders to show cause were granted, and appellants filed answers. Appellants A. J. Nord and his wife claimed an -undivided one-half interest as tenants in common with appellee, and appellant J. J. Nord asserted various liens. Hearings before the referee were held on April…