Bank of California National Association v. Twin Harbors Lumber Co.

We granted permission to appeal in this case under 28 U.S.C. § 1292 (b) to decide the following question posed by the District Court in its order made pursuant to that section:

The question posed, however, is not presented in this case. There are no such “plaintiffs”; there is but one plaintiff, appellee Bank of California National Association. It is the trustee of an express trust, under which it holds legal title to a large tract of land in Northern California, known as Deerfield Ranch, for the benefit of three named parties. As to the first two, the Bank holds title as security for the payment to them of certain moneys owing to them, payment to be made from portions of the proceeds of sales of parcels of the property, or, if these be insufficient, from moneys to be paid by the third beneficiary, a partnership. As to the first two beneficiaries, the Bank is, in substance, the trustee with power of sale, under a trust deed type of mortgage.

The third beneficiary, the partnership, has, subject to the rights of the first two beneficiaries, the entire beneficial interest in the property. The Bank holds title for its benefit while the property is being subdivided and sold. When…