Becker v. Muehlig

221 A.D. 512, 224 N.Y.S. 705, 1927 N.Y. App. Div. LEXIS 6484
Appellate Division of the Supreme Court of the State of New York·Decided November 2, 1927·Published·Cited by 4 cases

Opinion

Sawyer, J.

The action is in partition and by its interlocutory decree the premises were directed to be sold at public sale “ free from the lien of all debts ” by and under the direction of a referee therein appointed.

On the day fixed in the notice therefor, the referee attended and offered the property for sale under terms of sale customary in such matters and that conformed with the direction of the interlocutory judgment except that they provided that said premises shall be sold subject to all unpaid paving taxes,” and that receipts for the [513] payment of any such taxes that were Hens or incumbrances on the premises would not be aHowed to apply on the purchase money as was permitted for other Hens. The terms were read and announced at the sale by the referee and the amount of the paving taxes was stated by him to be from $600 to $650 as is shown by his report and the vohmainous affidavits forming a part of the record.

Defendant Caroline A. B. Harsch was present with her attorney and through him bid in the property for $7,500 but declined to make the ten per cent down payment required by the decree and terms of sale, and also refused to sign the memorandum of sale. Her refusal arose out of her beHef that she was buying the property for $7,500 and not for $7,500 plus the amount of the paving tax, as she is claimed by plaintiff to have done.

The referee has reported that the sale was made subject to the paving taxes and that this with their amount was pubHcly announced before the property was offered. Mrs. Harsch denies this; her claim is that when the property was first offered for sale, nothing was said about the unpaid paving taxes; that not until after her bid of $7,500 was made did the referee announce, their existence; that consequently their Hen affected subsequent bids only, while that made by her stands at $7,500.

A number of affidavits in support of both contentions were submitted with the motion for confirmation of the referee’s report and on these conflicting affidavits Mrs. Harsch has been ordered to meet her bid of $7,500 and accept the deed; this in effect makes the purchase price to her somewhere from $8,000 to $8,150 and should she still decfine she becomes responsible for any deficiency between that amount and the result of the second sale.

The vital question presented is not whether the announcement preceded or foHowed defendant’s bid, but whether a referee must conform to the directions of the judgment under which he is acting. Sales in partition are analogous to those in foreclosure and of the latter it is said that “ the officer conducting a foreclosure sale must act in strict conformity to the terms and directions of the decree, and of the statute, if there be any, which is appHcable to such proceedings, and also in obedience to the writ, order, or other process which more immediately defines bis authority.” (27 Cyc. 1696.) The rule is not without reasonable elasticity, however, for Where the act of the referee is unauthorized and harmless, the parties may disregard it. Where the act of the referee is in excess of authority and a party in interest is not injured, the parties may disregard it and the purchaser cannot complain, and the court, on the motion of the parties affected, may ratify the act.” (Mullins v. Franz, 162 [514] App. Div. 316.) Where the act is unauthorized and property rights of a party in interest are injured the act must be repudiated.” (Mullins v. Franz, supra.) The law does not confine its protection to the parties to the action nor withhold it from all others who may suffer injury from the wrongful act. A purchaser at the sale, misled to his injury thereby, is entitled to appeal to the court for relief and to receive the same redress that would be extended to the other parties. In this case, however, the bidder is also a necessary party to the action.

A referee to sell is a ministerial officer, appointed by the court for its convenience and charged only with the duty of making the sale in the manner it may direct. A plaintiff, or even all parties to the action, may consent to a variation from the court’s direction, but there still remains to be considered the rights of the purchaser. The validity of his title to the real estate is involved. He gets his title through the referee but its marketability, or otherwise, must rest upon the action of a court of competent jurisdiction and not upon the discretionary action of a mere ministerial officer appointed for a specific purpose. He may, as is here claimed, be led by the unauthorized act of the referee into an offer for the property greater than he intended to make or was willing to pay. In still other ways his rights and interests may be jeopardized. Can it be said that the court is without power to vacate the unauthorized sale and thus relieve him from his difficulty? . .

The question of the authority of such referees to vary from the directions contained in their empowering judgments or decrees has been before our courts a number of times, and in every instance, where injury was shown, the rule above indicated has been enforced in all its strictness.

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Becker v. Muehlig, 221 A.D. 512, 224 N.Y.S. 705, 1927 N.Y. App. Div. LEXIS 6484 (N.Y. Ct. App. 1927).

221 A.D. 512 (Becker v. Muehlig) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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