Kesling v. Bank of America National Trust and Savings Association

449 F.2d 770 In the Matter of Ernest F. Kesling and Barbara Kesling, bankrupts. Ernest KESLING and Barbara Kesling, Appellants, v. BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, Appellee. No. 26502. United States Court of Appeals, Ninth Circuit. Oct. 4, 1971. Jack Rainville (argued), Robert Mezzetti, of Mezzetti & Aguilar, San Jose, Cal., for appellants. David B. Flinn (argued), of Cerf, Robinson & Leland, San Francisco, Cal., for appellee. Before ELY and CARTER, Circuit Judges, and JAMESON, * District Judge. PER CURIAM: 1 This appeal is brought from a district court decision vacating the order of a referee in bankruptcy. Appellants claim error in the court's literal interpretation of a so called "dragnet clause" in a trust deed securing a loan from appellee. The clause provided that the total indebtedness secured included any sums which appellants might owe to appellee bank, whether incurred in the past, at the time of execution of the trust deed, or subsequently. 2 The clause became of consequence with the failure of a company owned by appellants. Prior to the execution of the trust deed, appellants had issued continuing guarantees to appellee, pursuant to a…