Castle v. Schulman

SHENK, J.

This is an appeal by the plaintiff from an order granting a new trial in an action to quiet title to a lot in the city of Los Angeles. Findings and judgment had been made and entered in favor of the plaintiff. The defendant’s motion for a new trial was granted on the ground that the decision was against law. The facts were stipulated.

On, February 26, 1931, the treasurer of Los Angeles County issued bond No. 170, Los Angeles County Improvement No. 499, covering the lot the title to which is the subject matter of the action. That bond thereupon became a lien on the property. The plaintiff claims title through a commissioner’s deed issued in foreclosure action No. 429935 brought in Los Angeles County, after default by the owner of the property in the payment of that bond.

The defendant claims through a certificate of sale of the same lot issued by the treasurer of the city of Los Angeles after a delinquency sale of street improvement bond No. 1990 for the improvement of 114th and other streets, series 2, issued by the city treasurer on November 25, 1931, and which on that date became a lien on the property.

The foreclosure action on bond No. 170 was commenced subsequent to the issuance of bond No. 1990, and did not name as a defendant the holder of the latter bond. In the present action the judgment for the plaintiff which was set aside on new trial proceedings was based on the trial court’s conclusion that the defendant’s rights were terminated by the foreclosure judgment and sale to the plaintiff, notwithstanding the fact that the holder of bond No. 1990 was not a party to the foreclosure action. The question presented by this appeal is whether the defendant’s rights were thus foreclosed.

The controlling provisions are contained in the Improvement Act of 1911 (Stats. 1911, pp. 730-768), now sections 5000 et seq., Streets and Highways Code (added by Stats. 1941, p. 830). Sections 6500 et seq. of the Streets and Highways Code deal with “Default and Sale for Delinquency,” that is, the treasurer’s delinquency sales under defaulted bonds. Sections 6610 et seq., dealing with “Foreclosure of Bond Lien,” with which we are here concerned, provide for the procedure when the holder of a defaulted bond obtains

[224]