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Luette v. Bank of Italy Nat. Trust & Savings Ass'n

United States Court of Appeals for the Ninth Circuit
42 F.2d 9 (1930)


Facts

Luette (plaintiff) entered into a contract to purchase one quarter of an acre of real property from Bank of Italy (defendant). The contract required Luette to make a down payment followed by monthly installments. The contract required Bank of Italy to convey title upon payment of the full balance in May 1933. Luette discovered that homestead claims had been filed against a tract of land that included the lot Luette sought to purchase. The tract subject to claims consisted of more than 16,000 acres. After learning about the homestead claims, Luette demanded that Bank of Italy produce its title to the property and offered to pay the full remaining contract balance upon production of title. Bank of Italy declined to produce title. Under the theory that Bank of Italy’s title was in question as a result of the pending homestead claims, Luette filed suit seeking an injunction preventing Bank of Italy from terminating the purchase contract and demanding relief from the obligation to make further payments until the homestead claims had been resolved. In the alternative, Luette sought rescission of the contract and a refund of payments tendered. The trial court dismissed Luette’s complaint. Luette appealed.

Rule of Law

Issue

Holding and Reasoning (Kerrigan, J.)

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