Abbott Building Corporation, Inc., the Abbott Trust v. United States of America, Western Title Company, Inc., a Nevada Corporation

Abbott Building Corporation (ABC) and the Abbott Trust (both referred to as appellants) brought this action to set aside the foreclosure sale of appellants’ property to the Federal Savings and Loan Insurance Corporation (FSLIC) . The district court held that it had no jurisdiction over the action against FSLIC and that if it did appellants failed to state a claim. Appel lants also sued Western Title Co. (Western), the trustee under the deed of trust. As to it, the district court found that no claim was stated.

We hold that the district court did have jurisdiction over the claim against FSLIC, but affirm because we agree that the complaint failed to state a claim against either FSLIC or Western.

BACKGROUND

In November of 1985, ABC executed a promissory note in favor of Sierra Savings & Loan Association (Sierra). Payment of the note was secured by a deed of trust on certain real property owned by ABC under which Sierra was the beneficiary and Western was the trustee. By September of 1987, ABC had defaulted in its payments under the note, so foreclosure proceedings were commenced by Sierra and Western. In October of 1987, the Federal Home Loan Bank Board appointed FSLIC receiver…