Brock v. Rice
Brock v. Rice
Opinion of the Court
delivered the opinion of the court.
In considering this case, it is important to bear in mind the rules of law governing judicial sales. All the authorities agree there is a wide distinction be
According to the English practice, the preferred bidder is never entitled to the benefit of his purchase till the master’s report of the bidding is confirmed by the court. He is not liable to any loss by fire or otherwise, which may happen to the premises, nor is he entitled to the benefit of any appreciation of the estate by the accidental falling in of lives or other means. Until confirmation, the purchaser is not compelled to complete his purchase, nor is he entitled to the possession of the estate.
It is not material to inquire how far these rules of the English courts prevail in this state. It is very certain that with us the commissioner conducting a sale is regarded merely as the agent or servant of the court," and his proceedings are necessarily subject to its revision and control.
Whether the court will confirm the sale, must in great measure depend upon the circumstances of each particular case. It is difficult to lay down any rule applicable to all cases; nor is it possible to specify all the grounds which will justify the court in withholding its approval. If there is reason to believe that fraud or mistake has been committed to the detriment of the •owner or the purchaser, on that the officer conducting
The court, however, in acting upon a report of sale, does not exercise an arbitrary but a sound legal discretion in view of all the circumstances. It is to he exercised in the interests of fairness, prudence, and with a just regard to the rights of all concerned. See Taylor v. Cooper, 10 Leigh 317; Daniel v. Leitch, 13 Gratt. 195, 211, 214; Blossom v. Railroad Company, 3 Wall. U. S. R. 205, 6, 7; Rover on Judicial Sales, and cases cited at pages 30, 55, 56.
There is another rule which may be noticed in this connection, ifo -person employed or concerned in selling at a judicial sale is permitted to become a purchaser, or even to act as agent of a purchaser. It is impossible with good faith to combine the inconsistent capacities of seller and buyer, crier and bidder, in one and the same transaction. If the commissioner or auctioneer faithfully discharges his duties, he will, of course, honestly obtain the best price he can for the property. On the other hand, if he undertakes to become the purchaser for himself, or for another, his interest and his duty alike prompt him to obtain the property upon the most advantageous terms. There is an irreconcilable conflict between the two positions. And so the courts have always held. Rover on Judicial Sales, 30.
In the case before us the auctioneer (Moore) in acting as agent for the appellant, therefore clearly violated bis duty. In doing so he was not influenced by anything said or done by the appellant. The latter not
"When the sale commenced there was a single bid of ten dollars per acre. The next bid was by the auctioneer for the appellant, of twenty-five dollars per acre, an advance of fifteen dollars per acre upon a single bid. At this point the bidding ceased; at least no one seemed inclined to offer more. The auctioneer then approached the appellee, John Harper Bice, and asked him why he did not hid, saying “ mine is a bona fide bid, and I am not going to stop at this.”
The object of this communication is plain enough. It was to induce the owner to run up the property upon the appellant, whom the auctioneer was professing to represent. It is my bid—and I shall continue to bid— you may therefore safely become a bidder, is the intimation to the appellee. This declaration was not made publicly, but privately to a party at whose instance and for whose exclusive benefit the sale was made; who was a gainer by every dollar added to the
It is not extravagant to assert that Rice must have been satisfied that the auctioneer was not bidding for himself, but for some person not present; and the auctioneer must have been equally well satisfied, that Rice was not bidding with any viéw to an actual purchase of the property. The bystanders no doubt thoroughly comprehended the whole situation—the auctioneer and one of the parties chiefly interested, the only competitors.
It is not surprising that there was no bid for the property after the first, by any other person. It is very true that both Rice and the auctioneer deny there was any arrangement or understanding between them with respect to the bidding; and we are not disposed to impeach their testimony in this particular. But it is undeniable that each must have fully comprehended the entire situation: lies ipsa loquitur. Rice certainly well understood that acting under the auctioneer’s invitation, and aided by his connivance, he was creating a factitious competition at the expense of the appellant. It is impossible that a sale thus made can receive the sanction of a court of equity. The conduct of Rice precludes him from insisting upon a confirmation.
It has been said, however, that the appellant ratified the sale after it was made. A satisfactory answer to this is, that at the time of the supposed ratification the appellant could not have known of the existence of the facts in respect to the conduct of Rice and the auctioneer at the sale. It is very probable that he was not apprized of them until they were brought out on the examination of the witnesses, or at least a short time before that testimony was taken. The ratification of course amounts to nothing unless made with an understanding of all the material facts and circumstances attending the sale.
Before concluding this opinion it is proper to advert very briefly to other matters having some connection with what has been said. In the first place it is very questionable whether the appellant ever authorized Moore, the auctioneer, to bid for the whole tract of land. He certainly did empower him to purchase a part of the tract designated; but the appellant was very careful to limit the price, a price he was willing to give at a public or private sale. The appellant had not even looked at the other part of the tract. He had declared he would not buy it on any terms. It is
It must be premised that the courts always listen with suspicion and reluctance to any defence founded upon an alleged voluntary intoxication. Here, however, the question is not upon the avoidance of a contract made by the party himself; but upon the ratification of an unauthorized act of another, by which the supposed principal is involved in a very heavy liability. If the appellant honestly believed he had only authorized the purchase of a part of the tract, he would naturally believe that such part only had been purchased, and he might as reasonably conclude, when called on by the commissioner to sign the memorandum of sale, that it related only to that part. This would be peculiarly so if the appellant at the time, from any cause, was not in complete possession of his mental faculties.
Upon the question of the appellant’s drunkenness the evidence is very conflicting. But it cannot be denied
Upon the whole we are of opinion the decree of the circuit court must be reversed, the sale set aside, the rule awarded against the appellant discharged, and the cause remanded for further proceedings.
The decree was as follows:
And this court proceeding to render such decree as the said circuit court ought to have rendered, it is decreed and ordered, that said sale be and the same is, hereby annulled; that the rule awarded against the said John P. Brock on the 25th day of August 1874, be discharged, and that the appellee, John Harper Bice, do pay to the said Brock his costs by him expended in his defence to said rule. And it is further ordered that this cause be remanded to the said circuit court for such further proceedings as the parties interested may be advised to take with reference to a sale of the property in the bill and proceedings mentioned.
Which is ordered to be certified to the said circuit court of Shenandoah county.
Decebe eeveesed.
Reference
- Full Case Name
- Brock v. Rice & als.
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