Charles H. Alberding v. Everett S. M. Brunzell and Dana Brunzell, Charles H. Alberding v. Everett S. M. Brunzell and Dana Brunzell

Appeal from the United States District Court for the District of Nevada.

Before WRIGHT and KENNEDY, Circuit Judges, and CRAIG, District Judge.

This case arises from an action for contribution brought by a surety (Alberding) against one of his cosureties (the Brunzells). In 1962, Alberding, Brunzell, Gaylord Pritchard, and Frank Jackson formed a corporation, Jack London Inn, Inc., for the purpose of financing, constructing, and operating the Jack London Inn. California was the corporation’s domicile, the state where the Inn was located, and the state where substantially all of the transactions described below took place.

In order to finance the hotel, the corporation obtained a $950,000 loan from the State Mutual Savings and Loan Association in return for a first deed of trust on the Inn. Additional financing in the sum of $300,000 was secured from Westinghouse Credit Corporation in exchange for a second deed of trust and personal guarantees from each of the four investors. Alberding acquired a third deed of trust in exchange for a $50,-000 loan.

Over time the Inn experienced financial problems and was unable to meet its obligations. On October 31, 1966, State Mutual…