Salter v. Ulrich
California Supreme Court
22 Cal. 2d 263 (1943)
C. A. Kassel owned a piece of real property. Kassel borrowed money from E. W. Ulrich (defendant) and executed a deed of trust on the property for Ulrich’s benefit as security for the debt. Kassel then issued a bond to Oswald, also secured by the property. Kassel defaulted on his debt to Ulrich, who brought a personal action against Kassel to recover his debt. Ulrich did bring the deed of trust to the court’s attention. The court executed a judgment in favor of Ulrich and authorized a sale of the property by Kassel to Ulrich to partially satisfy the debt. After the sale was executed but before Kassel delivered the deed to Ulrich, Oswald brought a foreclosure action against Kassel after Kassel defaulted on the bond. Oswald purchased the property in a foreclosure sale. Oswald then sold his ownership interest in the property to Fred Salter (plaintiff). Salter brought an action to quiet title, seeking a judgment that he, Salter, had title to the property as opposed to Ulrich. The trial court held that Ulrich held title but that the land was still encumbered by a lien held by Salter attributable to Kassel’s default on the bond. Salter appealed.
Rule of Law
Holding and Reasoning (Gibson, C.J.)
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