Bank of Mendocino v. Baker
California Supreme Court
82 Cal. 114, 22 P. 1037 (1889)
Facts
The Garcia and Point Arena Railroad Company (railroad) purchased title to a piece of land from Campbell. Campbell conveyed the railroad title in fee simple. The deed was never recorded; however, agents of the railroad (defendants) openly possessed the land for many years. Separately, two individuals had conveyed a right-of-way to the railroad, and the corresponding deed had been properly recorded. Years after conveying the land to the railroad, Campbell executed a mortgage on the same land to Abbott. Campbell defaulted on the obligation the mortgage secured, and Abbott held a foreclosure sale of the land. The foreclosure purchaser was Bank of Mendocino (bank) (plaintiff). The bank then filed an ejectment action against the railroad agents in possession of the land. The bank argued that, because public records listed only Campbell as titleholder to the land and the railroad as the holder of a right-of-way, the bank could purchase title to the land from Campbell without any further inquiry. The trial court denied the ejectment, and the bank appealed.
Rule of Law
Issue
Holding and Reasoning (Foote, J.)
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