The Prudential Insurance Company of America v. Fifty Associates

Before BARNES and CARTER, Cir- - cuit Judges, and LINDBERG, District Judge.

This case presents the question of whether the mortgagee (appellee) or the land owner-mortgagor (appellant) is entitled to the rents from the encumbered land, collected by a receiver, between the date of the filing of a foreclosure by the mortgagee and the date of foreclosure sale. We decide in favor of the mortgagee (appellee) and affirm.

This is the third go-around in the case of Fifty Associates v. The Prudential Insurance Company of America, 446 F.2d 1187 (9 Cir. 1970); and 450 F.2d (9 Cir. 1971). Neither prior case has any real bearing on the present question.

FACTS

Fifty Associates (hereafter “Fifty”) in 1959 owned the fee interest in real property in Phoenix, Arizona, and leased the same to Mayer Central Building Corp. (hereafter “Mayer”) for 99 years. The lease required Fifty to subject its fee interest to a loan from The Prudential Insurance Company of America (hereafter “Prudential”) for $2,500,000 for the construction of an eight-story building to be built on the leased premises. In 1960, Fifty executed the mortgage to Prudential for the $2,500,000 and thereby subjected its fee…