Security-First National Bank v. Superior Court

BARNARD, P. J.

This is an application for a writ of prohibition to prevent the Superior Court of Imperial County from taking any action or exercising any jurisdiction in a certain proceeding for debt relief instituted in that court under the provisions of chapter 348 of the Statutes of 1935 (Stats. 1935, p. 1208).

On or about July 21, 1934, one W. S. Harris filed a petition in the United States District Court in and for the Southern District of California praying for relief under section 75 of the National Bankruptcy Act (U. S. C. A., sec. 203). That court issued an order restraining all creditors of Harris from foreclosing or enforcing liens against his property. In November, 1934, on motion of certain creditors of the said Harris, said court entered an order dismissing the proceeding therein on the ground and upon the finding that Harris was not a farmer under the terms of the Bankruptcy Act and, in particular, under the terms of subdivision (r) of said section. Harris appealed to the United States Circuit Court and by appropriate proceedings secured a continuance in force of the restraining order preventing lien holders from enforcing their liens by sale or foreclosure. On August 5, 1935, the Circuit Court of Appeals entered and filed its decision dismissing the appeal on the ground that it had no jurisdiction of an appeal which had been allowed by the District Court, and that it declined to take jurisdiction under a petition for appeal directly presented to that court.

The petitioner herein is the holder of certain trust deeds covering real property belonging to said Harris. .These trust

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deeds secure notes aggregating about $14,000, of whic^i about $12,300 is long past due, as is certain interest, together with about $8,000 advanced by the petitioner for taxes on the land. On or about July 20, 1935, the petitioner recorded a declaration of default in connection with these trust deeds.

On July 20, 1935, the said Harris filed a petition in the Superior Court of Imperial County, seeking relief under the state debt moratorium provisions of chapter 348 of the Statutes of 1935. This petitioner moved in the Superior Court for a dismissal of that proceeding on the ground that said court had no jurisdiction of the subject-matter and that at the time of filing said petition by the said Harris the mátter of debt relief and all matters in connection with liens on said real property were exclusively within the jurisdiction! of the federal court. This motion was denied and this proceeding followed.