Klopp v. Witmoyer
Klopp v. Witmoyer
Opinion of the Court
The opinion of the court was delivered, by
The plaintiff in error and defendant below can only succeed by showing that the sheriff’s sale, under the execution of the defendant, was absolutely void. If it was only irregular and voidable, he is not in a position to question it. He was neither an execution or a judgment creditor of John II. Witmoyer when the sale was made, nor was his suit commenced until more than seven months afterwards. The contest in -the court below, therefore, very properly was, whether the sale was fraudulent in fact, or so conducted that the law pronounced it void. Several assignments of error have been made to the charge of the court. They present, however, but three questions, each of which will be considered.
The property sold was the stock of a lumber and coal yard. The lumber was of various kinds and qualities, consisting of boards, planks, shingles, scantling, lath, palings, &c., and was principally at the yard in the' borough of Lebanon. A part of it, however, perhaps a quarter of it in value, and the coal, worth more than f>800, anthracite and bituminous, was at the canal, from a third to half a mile distant from the .lumber-yard. The
The question of fraudulent intent was submitted to tlio jury, and in regard to that we have nothing before us. It is complained, however,.that the court instructed the jury that “the sale of the property in mass was not in itself void, that the sheriff had a sound discretion so to dispose of it, and if in his honest judgment it would in that way command the best price., the sale cannot be avoided, especially by one who had no interest whatever in the subject-matter at the time of the sale.” And again, “ if this course (a sale in mass) was adopted without any sinister design, but with an honest conviction that, under all the circumstances, it was most advantageous for all interested, debtor, creditor■, and all other creditors, it is not fraud in law, and no evidence of fraud in fact.” And again, the learned judge said, “ we have already said that there is not such irregularity in this sale as to render it void.”
Our of Assembly require that sales of property taken in execution shall be by public auction, and sales in any other way are void. But there is no statutory requirement that property seized must be sold in detail, in parcels, or in the aggregate. The mode of selling, whether in parcels or in mass, has been left unregulated by statute. The practice undoubtedly has been to sell in detail, or in small quantities, and such has been understood to be the duty of the sheriff. To say the least, the sale that was made in the present- case was a gross irregularity, if it was not in law a nullity. The policy of the law is to multiply bidders and increase competition. Thus the interests of the debtor are advanced, as well as those of the creditors. It is for this reason that, any attempt on the part of a purchaser to dissuade bidding avoids the sale, and leaves the property open to seizure at the suit of another creditor. But soiling the entire stock in a lumber-yard, or in a store, in mass, inevitably harrows the circle of bidders, and consequently diminishes competition. Many purchasers might be found for portions of the lumber or
It may be that here and there a person would give more for a stock of goods if sold together than he would if sold in detail, but he is not likely to be compelled to give more by competition. The sheriff’s duty is regulated not by what might be the result in an extraordinary case, but by general rules of policy, and to to those rules the public interests require that he should strictly be held. If he may sell numerous articles at wholesale whenever he thinks they will thus bring a better price, why may he not sell privately if, in his judgment, it would be advantageous ? The statute, indeed, demands a public sale, and only legal policy requires a selling at retail; but the object of this policy and the statute is the same. It is to secure the best price for the property levied upon, and to guard against frauds. In Rowley v. Brown, 1 Binn. 61, where it appeared that the sheriff had sold by a lumping sale three pieces of land which might have been sold separately, though they were jointly subject to an entire ground-rent, the sale was set aside, and it was said to be the rule of this court to disallow a lumping sale by the sheriff in every case where, from the distinctness of the items of the property, we can have distinct sales. It was said to be essential to justice, and to the protection of unfortunate debtors, that this should be the general rule; any other would lead to the most shameful sacrifices of property. If such is the rule in regard to sales of real estate, a multo fortiori should it be in respect to sales of personalty. Abuses are more easy in the latter than in the former. Judicial sales of real estate pass directly under the inspection of the court at the acknowledgment of the d<" ed, but over sales of personalty the court has no such immediate supervision. It is to be observed, that the rule of public policy winch requires sales of personal property taken in execution to be made in detail, has for its object more than the protection of the debtor, and the interest of the execution-creditor. Its purpose is also to protect the general creditors of the debtor against fraudulent sales under the forms of law. If a sheriff may at his discretion sell the entire stock of a store, of a lumber-yard, or a coal-yard in the lump, it is obvious that creditors generally are at the mercy of the debtor and a single creditor. The present case is a good illustration of the mischief. The father of a debtor levies an execution upon a large and varied stock of his son’s personalty, appraised at nearly $6000. By his direction, or that of his attorney, or at least at his instance, it is offered and sold as an entirety. The father becomes the purchaser at his first and only bid. No other person could have bid
The error becomes more palpable when considered in connection with the answer which the court gave to the third point of the plaintiff below. That point was, “ if the jury believe that the counsel of the execution-creditors of John II. Witmoyer, under whose (executions) the property was sold, gave directions to the sheriff that the same should be sold in gross, and that the sheriff., in pursuance of such request, sold the same in that way, it was a fraud in law, and the plaintiff was entitled to recover.”
To this the court answered: “The law is not so, unless the instruction was intended for a fraudulent purpose, or there is satisfactory evidence in the case that the sale operated unjustly, by the property selling for a loss price than it would have brought if exposed in lots or parcels.” It is not to be forgotten that the plaintiffs in the executions were the purchasers at the sale. Now, even if the sheriff might, at his discretion, sell the entire stock of lumber and of coal, and the office furniture in mass, as the court below thought, that discretion was not to be controlled by the plaintiffs in the executions and the purchaser. That would be intolerable. It would be in effect substituting the will of the creditor and purchaser for the discretion of the officer of the law. It may be, and it is the law, that the sheriff is not bound to obey any illegal direction. But can a party who has done all in his power, by himself or his attorney, to take away any discretion of the sheriff, be heard to say that the sheriff’s discretion was exercised. Who knows how far the officer felt controlled by the direction of the attorney? In this case the sheriff' testified that he never sold in that way (in the lump) but by direction of counsel. Liability to the plaintiff in an execution is before the eyes of a sheriff when he determines how a sale is to bo made. But if he follow instructions he is not liable-to the party who has given them: Strong v. Bradly, 14 Verm. 55. Even, therefore, if he be under no obligation to follow instructions, they do not leave him a full discretion, and if
The remarks of Judge Coulter in McMichael v. McDermott, 5 Harris 358, are sound: “The principle is that he -who has the absolute control of the sale for his own benefit cannot be a purchaser, unless there is fair competition of bidders, or a lawful opportunity given for such competition ; otherwise the property of the debtor might be sacrificed. And even the consent of the debtor would not cure the defect, for there is often collusion between him and a particular creditor. The other creditors have an interest that must be protected.”
The court was also asked to charge the jury in substance that the sale was void because a portion of the property was from a thifd to a half a mile distant from the place of sale. We think the answer of the court to this request was unexceptionable. Doubtless persona] property must be in the power of the sheriff when he sells, and where bidders may inspect it. But a sale is not necessarily void because the articles are not immediately in view when sold. The remarks of the learned judge upon this subject were discriminating and just. We discover no other errors in the record than those which we have noticed.
The judgment is reversed, and a venire de novo awarded.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.