Pan American Petroleum Co. v. Chase Nat. Bank of New York

This case comes up on appeal from a declaratory judgment entered in response to a separate complaint which was brought in the course of receivership and foreclosure proceedings. The facts, about which there is no material dispute, are set out in the pleadings. The trial judge incorporated the pleadings by reference in his memorandum opinion and treated them, together with the opinion, as his findings of fact.

In 1925, for the purpose of securing a $10,441,400 bond issue, Pan American Petroleum Company, a California corporation, executed a mortgage and deed of trust upon certain of its real and personal estate. Chase National Bank, a New York corporation, was named trustee. On April 30, 1932, Chase National filed a bill in the District Court in Los Angeles against Pan American for the purpose of foreclosing this mortgage.

In the meantime, other creditors had brought actions in the same court against Pan American and against Richfield Oil Company, a Delaware corporation, which owned, subject to incumbrances, all the outstanding stock of Pan American. There was also some litigation, in the same court, between Richfield and its subsidiary, Pan American. Among the claims which had…