Laugharn

Laugharn v. Bank of America Nat. Trust & Savings Ass'n

Good Law
88 F.2d 551·1937 U.S. App. LEXIS 3193
United States Court of Appeals for the Ninth CircuitFebruary 23, 1937No. 8295California2,118 words

Opinion

Lead Opinion

Haney, J.

Appellant as trustee in bankruptcy asks review of an order of the bankruptcy court allowing claims filed by appellee, as secured claims.

Bankrupt Jack Dave Sterling bought lots 2 and 4, block 319, Huntington Beach Seventeenth Street section together, and caused title to be taken in the name of one Kearns, as trustee. Kearns thereafter leased lot 2 to Huntington Shore Oil Company, a corporation, hereinafter referred to as Huntington, reserving a landown *552 er’s royalty therein, which was thereafter sold to third persons. Kearns also leased lot 4 to Tide Petroleum Company, a corporation, hereinafter referred to as Tide, reserving a landowner’s royalty therein, which was thereafter sold.

Thereafter, Kearns transferred whatever interest he had in lot 2 to Huntington, and transferred whatever interest he had in lot 4 to Tide.

Lion Petroleum Corporation, hereinafter referred to as'Lion, was lessee in an oil and gas lease covering other property.

Appellee is a national banking association, and on September 21, 1935, made a loan of $5,000 to Huntington which was evidenced by a promissory note. At the same time appellee made a loan of $5,000 to Lion, which was likewise evidenced by a…

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