This section contains the nature of the case and procedural background.

Osin (P) sold a parcel of real estate to Johnson (D). D did not make a down payment, and P took a note for the entire purchase price. D promised P that he would prepare, execute and record a trust on the property, which he never did, although he did record the deed that P had given him. D later secured additional loans from other parties by executing deeds of trust against the same property, without disclosing P's interest in the property. Subsequently, judgment creditors of D got liens against the property. The creditors which held the deeds of trust brought actions to foreclose on the property. P filed this suit in equity. The lower court found that P had conveyed title to D in reliance on D's assurance that he would record the trust, but held that the trust holders and judgment creditor's claims on the property were superior to P's. P appealed, arguing that D fraudulently procured her signature on the sales contract and that a constructive trust on the property should have been imposed in her favor. The court finds that P may not have a constructive trust imposed on the property in her favor against the holders of the other deeds of trust, because they are bona fide purchasers who were entitled to rely on the recording system in taking their interest in the property.

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