Miller v. Baynard
Miller v. Baynard
Opinion of the Court
announced the opinion of the court: The question reserved in this case, comes before us, on a case stated by the parties. It is a question, I think, of first impression, in the courts of this state; and hence, it is important that it should be decided correctly and upon principle; more especially, as the rulings at law, and in equity, are not altogether in accord. The courts of law appear to have somewhat more sharply defined the rule in respect to this subject, than the courts of equity. The material facts are very few. According to the conditions of the sale, the highest bidder was to be the purchaser; and yet Miller, the seller, employed one Captain Thompson, to bid on behalf of the estate, without making that fact known to the bidders either before or during the sale. The bidding, after it reached eighty dollars per acre, was confined to Captain Thompson, and George H. Baynard, who became the purchaser. Thompson was not a real bidder, but was employed by the seller to enhance the price of the property.
The question, therefore, for our decision, is simply this; whether secret by-bidding, or puffing, at a public sale, is lawful ? We think it is not. It seems to us that the employment of a puffer to enhance the price of the property, is not only opposed to .the soundest principles of public policy, but that a sale made under such circumstances is a fraud upon the purchaser, and consequently is invalid at law. The simple fact of offering property for sale, at public auction, is an invitation to all persons, to come together and bid for the same, upon fair and equal terms, and indeed, is equivalent to a public declaration that the sale shall be conducted fairly and in good faith toward all bidders. Any secret arrangement, there
These cases have been approved and followed among others, by Wheeler v. Collier, 1 Moody Malk 126. Crowder v. Austen, 2 Carr & Payne 208. Thornet v. Haines, 15 Mees. & Wells. 367. Rex. v. Marsh, 3 Younge & Jervis 331. 11 Paige Rep. 431. Phippen v. Strickney, 3 Metcalf 386. Veazie v. Williams, 8 Howard 134. And there is no hardship in the rule which these cases establish, for it is perfectly competent for the seller to fix a minimum price, or to reserve to himself the right to bid, or to employ another to bid for him, but he must give fair notice of the fact, so that
It seems to me, however, that a full answer to the equity cases, is to be found in the subsequent decisions, both in England and in this country, approving and following the original doctrine of Lord Mansfield, the governing principle of which doctrine is, that the buyer shall not be deceived by any secret management of the seller. Crowder v. Austin, 2 Carr & Payne 208. Wheeler v. Collier, 1 Moody & Malk 123. Veazie v. Williams, 8 Howard’s Sup. Ct. Reps. 134. Chancellor Kent concludes his review of these several decisions, by declaring the doctrine of the earlier cases, most “just and salutary.” He says “no person ought, in any case, to be employed secretly to bid for the owner against the bona fide bidder at a public auction. It is fraud in law upon the very face of the transaction, and the owner’s interference and right to bid, in order to be admissible, ought to be intimated in the conditions of sale; and such a doctrine has recently been declared in Westminster Hall.” 2 Kent’s Com. 6th edition, 538, 539. Considering, therefore, that the employment of said
Case-law data current through December 31, 2025. Source: CourtListener bulk data.