Muscek v. Equitable Savings & Loan Ass'n

This case comes to us on a complicated and disputed set of facts. In 1939, plaintiffs owned certain unimproved land in the city of Tacoma, from which they conveyed fourteen building sites to the defendants Rauh. Contemplating the construction of small dwellings thereon, the Rauhs took construction loans from the Equitable Savings and Loan Association, an Oregon corporation doing business in this state, giving in return a first mortgage upon each of the sites. The plaintiffs’ interest in each site was evidenced by a note secured by a second mortgage.

Rauh’s venture did not prosper. By the end…