C. Douglas Wikle, Trustee in Bankruptcy, for Nevada Henderson Land Co., a Corporation v. Country Life Insurance Company

Here on appeal is an order of the district court affirming an order of a referee in bankruptcy in Los Angeles who declined jurisdiction on an application of a bankruptcy trustee seeking an order quieting title in the trustee to a hospital in San Mateo County, California.

Country Life held a trust deed for security for an indebtedness of the Nevada Henderson Land Co. Under California state law, the trustee of the trust deed held a sale and the purchaser of the sale on January 14, 1966, was Country Life. A deed was delivered sometime after March 3, 1966, and recorded on March 10,1966.

Neither the sale nor the deed was accomplished on a calm sea.

Legal distress began for Nevada Henderson when Country Life in a San Mateo County state court obtained the appointment of a receiver on November 15, 1965, for the hospital which gave the receiver a right to possession and legally ousted the debtor.

On January 4, 1966, the record owner filed a plan of arrangement under Chapter XI of the Bankruptcy Act. Thereupon, the referee temporarily restrained the private trustee from proceeding with its sale scheduled for January 5, 1966. This order was dissolved by the referee on January 13 after a…