Parsons v. Little

District of Columbia Court of Appeals
Parsons v. Little, 28 App. D.C. 218 (D.C. 1906)
1906 U.S. App. LEXIS 5236
Shepard

Parsons v. Little

Opinion of the Court

Mr. Chief Justice Shepard

delivered the opinion of the Court:

The motion to dismiss the appeal, that was set down to be heard with the cause on its merits, alleges the following: First, that the appellant is not a party to the cause, and cannot appeal from a decree entered therein; second, that the same is not a final decree; third, that appellant did not give the bond required on appeal. The motion to dismiss, we think, must be denied. The appellant, as holder of bonds secured by the deed of trust, had a right to intervene in the proceedings for the protection of her interests, if necessary. Leave to file her petition for intervention was not denied. It was treated as having been properly filed, and was dismissed on its merits. The decree of dismissal was a final one as to her, and she was, therefore, entitled to appeal from it.

The bond was the printed form of a supersedeas bond, conditioned for the payment of damages, as well as costs, and bore the signature of appellant, as principal, and the United States Fidelity Company, as surety. Appellant’s counsel explained to the trial justice that the bond had been intended to secure the costs only, and with his permission, and the consent of the *227surety, who was present, the word “damages” was erased before approval. Whether the signature of the appellant was necessary to this appeal bond need not be considered. Her attorney represented her, and it must be presumed that he was authorized to make a change which rendered it less onerous, and the surety, consenting thereto, was bound by it. The costs of the motion will be taxed against the appellees.

Passing to the case on its merits, we are of the opinion that no error has been shown in the decree dismissing the petition for intervention.

Whether the sale ought to be considered as made by the trustee under the power conferred in the trust deed, or as a judicial sale under the order of the court, is immaterial, though the latter view is probably the correct one, as the trustee subjected itself to the power of the court in the matter of foreclosure. Nor need we pause to inquire whether the court had the power to change the time for advertisement of the sale that was stipulated in the trust deed. The order was made upon the application, and with the consent of the mortgagor, as well as of the trustee, which was the representative of the holders of the secured bonds. Moreover, a large majority of the holders of the outstanding bonds also gave their approval. Whether the sale as made and reported ought to have been confirmed was a matter within the sound discretion of the court. No one having an interest appeared in opposition to the order of sale or the decree of confirmation, — not even the appellant, who was apparently aware of the entire proceeding.

Although there is a great discrepancy between the amount realized by the sale, and the indebtedness and alleged capital stock of the insolvent corporation, the court was in possession of all the facts relating to the value of the property, and the presumption is in favor of the soundness and justness of its conclusion. There is no fact before us that would justify the inference that there was an abuse of discretion.

The petition for intervention was not even sworn to, and it alleges no fact tending to show irregularity or act of impropriety in the act of sale. Its single allegation, that the sale was made for “a totally inadequate price,” is a conclusion accompanied by *228no facts showing a foundation tberefor. No affidavits were filed in its support. It is true that reference is made to exhibits which consist of copies of two affidavits of the value of the property of the cereal company, that were made February 2, 1905, in some judicial proceeding at that time relating to the appointment of receivers for that company. What those proceedings were, or what was their result, does not appear. Those affidavits, made more than a year before the petition of intervention was filed, might have truly represented the then value of the property, without furnishing the measure of value at this time. And it is singular, indeed, that if the sale in January, 1906, was for a totally inadequate consideration, no witness was found to make affidavit to the fact. The general allegation, in the unverified petition, of the belief of -the petitioner that there is an agreement between the purchaser, Little, and other bondholders, that this purchase shall enure to their joint benefit, is of no consequence, since there is no allegation of a combination or understanding by them to stifle bidding at the sale, or in any manner prevent the property from selling at a fair price.

The court might well have denied the right to intervene upon a petition that was not even supported by the petitioner’s oath.

A decree confirming a sale cannot be reversed upon such a showing as the appellant has made.

The trust company was her legal representative in all matters relating to the foreclosure, and if she has sustained damages through any misconduct on its part she will probably have some remedy against it.

The decree will be affirmed with costs.

Affirmed.

Reference

Full Case Name
PARSONS v. LITTLE
Status
Published
Syllabus
Equity Pbactice; Intebvention; Appeals; Appeal Bonds; Judicial Sales; Tbusts and Tbustees; Cobpobations; Bondholders. 1. The holder of the bonds of a corporation, secured by a deed of trust, has the right, in order to protect his interest, to intervene in a proceeding in equity for the foreclosure of the deed of trust. 2. Where a petition to intervene in equity is treated as having been properly filed, although formal leave to file was not granted, and it is dismissed on its merits, an appeal by the petitioner will lie. 3. Ant appeal bond which, after its execution, but before its approval, is, by permission of the lower court, changed by erasure from a superse-deas bond to a bond for costs only, by the appellant’s attorney, with the consent of the surety, is a sufficient appeal bond. 4. Qucere, whether a sale under a decree directing the trustees named in a deed of trust to sell the trust property is to be considered a sale under the trust deed, or a judicial sale under the decree. 5. A sale made under a decree directing the trustees under a deed of trust securing the bonds of a corporation, to sell the trust property, will not be set aside on the ground that the decree changed the time for advertising the sale from that fixed by the trust deed, where the decree was passed upon the application of the grantor in the deed of trust and the trustee, who represented the holders of the bonds, and no one objected until after the sale had been confirmed. 6. Whether a judicial sale shall be confirmed is a matter within the sound discretion of the court ordering it, and the presumption is in favor of an order of confirmation. 7. A decree confirming a sale of the property of an insolvent corporation for default in the payment of bonds secured by a deed of trust will not be reversed upon the allegations, in an unverified petition of a dissatisfied bondholder, of a belief that there was an agreement between the purchaser and other bondholders that the purchase should inure to their joint benefit, and that the sale was made for a totally inadequate price, supported only by affidavits, filed a year before in another proceeding, to the effect that the property was then worth much more than was realized at the sale. S. The court may well deny the right to intervene upon an unverified petition. '9. A trustee under a deed of trust to secure the bonds of a corporation is the legal representative of the bondholders, and is answerable to them for misconduct in the matter of the foreclosure of the trust.