Miller v. Union Bank & Trust Co.

Plaintiff appeals from a judgment for defendants, entered upon the sustaining of a demurrer to the complaint without leave to amend. The complaint alleges, in substance, that on January 5, 1926, the defendant bank, a California corporation, issued a certain declaration of trust known as the. “Whittier Triangle Syndicate” involving a tract of real estate in Los Angeles County as the trust res; that the declaration of trust was issued for the purpose of selling assignments of beneficial interests to the public; that on May 14, 1929, the bank issued and sold to the plaintiff a 60/200ths interest in the net proceeds arising out of the trust; that at no time did the defendant bank have a permit from the commissioner of corporations to issue or sell the same; and that the assignment of the beneficial interest was therefore void to the plaintiff’s damage in the amount of the purchase price.

In the case of Fox-Woodsum Lumber Co. v. Bank of America Nat. T. & S. Assn., L. A. No. 14613 (ante, p. 14 [ 59 Pac. (2d) 1019 ]), this day decided, we held that in view of the express exception therein contained in their favor, national banks during the period 1923-1929 were not subject to the…