National Industries, Inc., a Kentucky Corporation v. Republic National Life Insurance Company, a Texas Corporation

Circuit Judge:

I. INTRODUCTION

This is a diversity case between the judgment creditors of successive record title holders to real property. In nearly every sense, the parties to this litigation, hereinafter referred to as “National” and “Republic,” are contestants in a championship fight for the title to a 40-acre tract of improved land known as the 5-G Ranch located in Maricopa County in the State of Arizona. The parties claim title to the property through separate execution sales. Both were victorious in their preliminary bouts which were staged in different arenas. National proceeded in state court and secured a judgment quieting its title against other adverse claimants. Republic achieved similar results in federal court. Neither was a party nor privy to the other’s suit and thus neither is bound by the other’s judgment. The stage was set and the parties squared off in 1970 when National filed this quiet title action against Republic.

The elusive nature of the issues raised in this action is adequately demonstrated by the rather remarkable and abrupt turn of events experienced by the parties during the course of this litigation. Republic won the first round when the…