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WALKER v. CONTINENTAL LIFE & ACCIDENT COMPANY

Nos. 23490, 23607 and 23608.

445 F.2d 1072 (1971)

Joseph M. WALKER, Plaintiff-Appellant, v. CONTINENTAL LIFE & ACCIDENT COMPANY, Defendant-Appellee. Carl L. MAUSER and Gertrude R. Mauser, Plaintiffs-Appellants, v. CONTINENTAL LIFE & ACCIDENT COMPANY, Defendant-Appellee. Carl L. MAUSER et al., Plaintiffs-Appellees, v. CONTINENTAL LIFE & ACCIDENT COMPANY, Defendant-Appellant.

United States Court of Appeals, Ninth Circuit.

Rehearings Denied July 13, 1971.

Attorney(s) appearing for the Case

Jack Rappeport, Tucson, Ariz. (argued), William McLane (argued), Phoenix, Ariz., for appellant.

Richard A. Segal (argued), of Gust Rosenfeld & Divelbess, Phoenix, Ariz., for appellee.

Before HAMLIN, BROWNING and DUNIWAY, Circuit Judges.

DUNIWAY, Circuit Judge:

Walker and the Mausers brought these actions under diversity jurisdiction, 28 U.S.C. § 1332, to rescind certain annuity loan transactions and to recover their "out-of-pocket" interest payments on the ground that the commercial purpose of the transactions was frustrated when the Supreme Court in Knetsch v. United States, 1960, 364 U.S. 361, 81 S.Ct. 132, 5 L.Ed.2d 128, ruled that such transactions were a...

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