Is it animal or vegetable?????

[ContainerTed]

I was over at my brother's place today, and he had a tree (maybe 15 feet tall) with the conditions in the pictures all over it. I've never seen this before, but then I've spent a lot of time in drier climates like the Mojave Desert.

The pictures also show the reverse side of the leaves where you can see the distortion of the leaf from these "cancers" (for lack of a better word).

Anybody seen this before???

One leaf had that little white caterpillar, but I don't know what it is.

Ted