Luette v. Bank of Italy Nat. Trust & Savings Ass'n
United States Court of Appeals for the Ninth Circuit
42 F.2d 9 (1930)
Luette (plaintiff) contracted to buy a quarter-acre lot from Bank of Italy (defendant), with full payment and title delivery due in May 1933; upon discovering homestead claims filed against a much larger 16,000-acre tract including his lot, Luette demanded the bank produce title early, offering full payment in exchange, but the bank declined. Luette sued for an injunction against contract termination and relief from further payments pending resolution of the claims, or alternatively for rescission and a refund; the trial court dismissed his complaint, and he appealed.
Whether, under California law, the vendee under a contract for the purchase of real property is entitled to rescind the contract on grounds that the vendor is unable to produce clear title at a date earlier than the date at which title must be delivered in accordance with the terms of the contract.