Security-First National Bank v. Superior Court

Petitioner is the successor of the Pacific-Southwest Trust and Savings Bank. It does not appear when the change of name occurred. For the sake of brevity we will hereafter refer to petitioner and the Pacific-Southwest Trust and Savings Bank as the “Security Bank” as the change of'name does not affect the merits of the controversy.

About March 17, 1927, Harry A. Clark offered to purchase certain real estate in San Diego from the Security Bank for $15,000. He deposited $1,000 with the Union Title Insurance Company to apply on the purchase price, together with an agreement to pay the balance within ninety days. This offer was not accepted by the Security Bank, but immediately after making deposit of the thousand dollars, and before any contract for the purchase was made, Clark took possession of the land and commenced the erection of a bungalow court upon it. By the twenty-first day of July, 1927, he owed $7,000 for labor and materials used and for which he was unable to pay. In July, 1927, he applied to the San Diego Trust and Savings Bank for a loan of $18,000 secured by a lien on the premises.

On August 12, 1927, the Security Bank sent a letter of instructions to the San Diego…