Mahoney
Federal Deposit Insurance v. Mahoney
Opinion
Lead Opinion
Noonan, J.
Edward Post Mahoney and the other named defendants (the defendants) appeal the judgment on the pleadings given by the district court in favor of the Federal Deposit Insurance Corporation (the FDIC) in its suit for declaratory relief and conversion. The case depends upon the statutory powers of the FDIC as receiver, 12 U.S.C. § 1821 (e)(1) and (4), and upon the value to the defendants of the building in dispute according to the lease attached to the pleadings. Observing that the value of the building consists in a permanent structure ownership of which is entirely contingent, we affirm the judgment of the district court.
FACTS
On January 1, 1962 the defendants leased to Home Federal Savings and Loan Association of San Diego (HomeFed) certain real estate in downtown San Diego adjacent to HomeFed’s offices. A two-story office building built in 1913 was on the premises. The lease was for 99 years, ending December 31, 2060. The rent was a minimum of $5,400 per month, adjustable each January in light of the cost of living index and of the appraised value of the land exclusive of “buildings and improvements located thereon.” By Article IV, section 2 of the lease HomeFed was given “the…