Joseph M. Walker v. Continental Life & Accident Company, Carl L. Mauser and Gertrude R. Mauser v. Continental Life & Accident Company, Carl L. Mauser v. Continental Life & Accident Company

445 F.2d 1072 Joseph M. WALKER, Plaintiff-Appellant, v. CONTINENTAL LIFE & ACCIDENT COMPANY, Defendant-Appellee. Carl L. MAUSER and Gertrude R. Mauser, Plaintiffs-Appellants, v. CONTINENTAL LIFE & ACCIDENT COMPANY, Defendant-Appellee. Carl L. MAUSER et al., Plaintiffs-Appellees, v. CONTINENTAL LIFE & ACCIDENT COMPANY, Defendant-Appellant. Nos. 23490, 23607 and 23608. United States Court of Appeals, Ninth Circuit. June 23, 1971, Rehearings Denied July 13, 1971. Jack Rappeport, Tucson, Ariz. (argued), William McLane (argued), Phoenix, Ariz., for appellant. Richard A. Segal (argued), of Gust Rosenfeld & Divelbess, Phoenix, Ariz., for appellee. Before HAMLIN, BROWNING and DUNIWAY, Circuit Judges. DUNIWAY, Circuit Judge: 1 Walker and the Mausers brought these actions under diversity jurisdiction, 28 U.S.C. 1332, to rescind certain annuity loan transactions and to recover their 'out-of-pocket' interest payments on the ground that the commercial purpose of the transactions was frustrated when the Supreme Court in Knetsch v. United States, 1960, 364 U.S. 361 , 81 S.Ct. 132 , 5 L.Ed.2d 128 , ruled that such transactions were a sham and that the 'interest' payments were not…