Battle v. Niece

MARKS, J.

This is an action brought by plaintiff to set aside a sale under a deed of trust. She alleges that she acquired an interest in a note secured by a deed of trust, by virtue of certain payments made upon the note, of which she was the maker, and which was held by the Security-First National Trust and Savings Bank of Los Angeles as beneficiary. The defendants Niece denied the material allegations of the complaint and filed a cross-complaint to quiet title to the real property in question. The defendant bank denied the material allegations of the complaint and filed a cross-complaint to quiet title to the note and deed of trust. The trial court found in favor of the defendants and cross-complainants on all material issues, and entered judgment in favor of the defendants Niece quieting title to the real

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property, and in favor of the defendant bank quieting title to the note and deed of trust in which it was payee and beneficiary.

Plaintiff purchased the real property from the defendants Niece on September 29, 1927, subject to a mortgage in the sum of $1,000 made by a Mr. and Mrs. Britt, payable to the Security Trust and Savings Bank of Los Angeles, predecessor in interest of defendant bank. As a part of the purchase price plaintiff executed a note secured by a deed of trust, in favor of the defendants Niece, dated March 17, 1928. Plaintiff defaulted under this deed of trust and the property was sold through trustee’s sale to the defendants Niece. It is this sale that plaintiff seeks to avoid.

On February 15, 1928, plaintiff executed a note in the principal sum of $1,000, secured by a mortgage in which the defendant bank was mortgagee. The court found that this note was given to refinance the Britt note.

On January 17, 1931, a contract extending this mortgage was executed by the plaintiff and the defendant bank. Defendants Niece, who held a subsequent encumbrance, consented to this extension.

On March 14, 1934, a note and deed of trust were executed by plaintiff in favor of the bank as payee and beneficiary. They were made in consideration of the cancellation of the $1,000 note and the release of the mortgage in which the defendant bank was mortgagee.