Branch of the Bank of Alabama v. Hunt

8 Ala. 876
CourtSupreme Court of Alabama
DecidedJanuary 15, 1846
StatusPublished
Cited by7 cases

This text of 8 Ala. 876 (Branch of the Bank of Alabama v. Hunt) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Branch of the Bank of Alabama v. Hunt, 8 Ala. 876 (Ala. 1846).

Opinion

COLLIER, C. J.

The conveyance from the mortgagor, Wallace, to Campbell, from the latter to Sayre & Converse, from them to Pritchard, and from him to the complainant, invested the Bank with the equity of redemption in the premises in question ; and when McCoy and English transferred their interest as mortgagees, the complainant was clothed with all the title that Wallace previously had. McCoy and English having disposed of their lien as incumbrancers, could have had no further inducement to prosecute the suit they had instituted, than merely to see that it was so terminated as not to subject them to costs. Their [884]*884assignee might, at least, if they did not object, have continued its prosecution for the purpose of more effectually securing a title by a foreclosure and sale. It is possible that this purpose might have been effected, and it is difficult to conceive of any other that could have prevented its dismissal.

We will consider the case upon the hypothesis that in advertising and selling the property, the register was endeavoring honestly to discharge his duty ; for there is nothing in the record to warrant the imputation of mala fides. It is unnecessary to in-inquire how judicial sales are conducted by a master in chancery in England, or whether it is his duty to inform the parties, or their solicitors, of the time when the bidding will be opened and closed: suffice it to say, that it is, in many respects, essentially different from the comrse of procedure in this country. [See Bennet’Pr. 162 to 167; 2 Smith’s Ch. Prac. 178-9 ; Collier v. Whipple, 13 Wend. Rep. 233-4, by Maison, Senator; Collier v. The Bank of Newbern, 1 Dev. & Bat. Eq. Rep. 328.]

According to the practice of the English Chancery, some of the reports of a master are complete as soon as they are filed, and do not require confirmation by the Court. But there are others which involve a question of law, or of fact, upon which the Court may be called upon to give a legal decision, and of this description, is the report, allowing the highest bidder at a sale under a decree, to be the pui’chasez’. This latter class of reports, it is said, must be confirmed by orders nisi and absolute, before any proceedings can be regularly taken upon them, and until this is done, no “ consequential directions upon it,” can be ordered. [2 Smith’s Ch. Pr. 358 ; Scott v. Livesey, 1 Cond. Eng. Ch. Rep. 467.] Bennet, in his practice in the master’s office, 167-8, thus states the mode of proceeding, viz: “ The sale having been completed, the purchaser, in case he shall be a willing one, procures the report of the master of his having been the purchaser at the sale, or the solicitors for the vendor may, if it be delayed by the purchaser, obtain this report. When obtained, the party who procures it, having had it duly filed at the réport office, and an office copy thereof taken, may on the next seal after the date of the report, move o.i petition for an order nisi, to confirm such report: copies of this having been served on the clerks in Court of all the proper parties in the cause, and no cause shown within the usual time, the report of his being the purchaser is confirmed absolutely.”

[885]*885The act of 1841, “to regulate the practice in the Courts of Chancery in this State,” enacts, that “unless exceptions have been filed to the report of the Master, the same shall be confirmed by the Court, after two days notice.” [Clay’s Dig. 355, § 65.] And the fifty-first rule for the regulation of the practice in Chancery, provides, that “the rules of the English Court of Chancery, not inconsistent with the statutes of this State, and the rules and decisions of this Court, so far as consistent with the institutions of this country, are hereby adopted as rules of practice in Courts of Chancery in this State.” [Clay’s Dig. 618.] The rules which prescribe the mode of proceeding, in order to confirm the Master’s report of a sale, are certainly in harmony with our decisions, at least so far as they require a notice to be given to the parties interested, or their solicitors, and are not opposed by any consideration of policy. Our rules are silent as to the manner in which the order shall be obtained, and if the case is not embraced by the act of 1841, recourse must be had to the English practice.

In the case at bar, there is no pretence that notice was ever given, that a confirmation of the sale, and consequent order to let the purchaser into possession, would ever be moved for. The Registeiyin his deposition, states that the complainant has never received the proceeds of the sale, and that he never gave it any inforrnation about the sale, either before or after it was confirmed. Under this state of facts, the confirmation cannot be sustained— notice, or something which the law regards equivalent, is in general an essential pre-requisite to judicial action; and where a Court assumes to act without it, its decisions are merely void. This being the case, the order of confirmation cannot be allowed to prejudice the complainant’s rights, but we must consider the application to set aside the sale, as if that order had never been made.

The manner of proceeding in order to open the biddings, after a sale has been made under a decree of a Court of Equity, either by a party to the cause, or a stranger, as well before as after confirmation, is fully pointed out by the elementary writers, upon the Chancery practice, and occasionally stated in an adjudged case, [2 Smith’s Ch. Prac. 236, et post; Bennet’s Prac. 171, et post; 2 Har. &. Gill’s Rep. 346; 13 Wend. Rep. 224.J But it is unnecessary here to consider how this result is effected; for the point has already been examined by this Court. In Littell v. Zuntz, 2 [886]*886Ala. Rep. 256, we said, “when a stranger is the purchaser at a mortgage sale, it will not be set aside for mere inadequacy, no matter how gross, unless there be some unfair practice at the sale, or unléss those interested are surprised without fault or negligence on their part.” « But where the mortgagee is the purchaser, and the debt secured by the mortgage is not discharged by the sale, no reason is perceived why the bidding should not be opened once, upon the offer of a reasonable advance on the former sale, together with the purchaser’s costs and expenses, which should be deposited in Court.” The reason for the distinction between the purchase by a stranger, and the mortgagee, may perhaps be considered well founded, but as it does not form an element in our judgment, in the present case, it need not be here noticed. It is however conceded, that “ the right to set aside a sale made by an order of the Court of Chancery, when a proper case is presented, must of necessity be an attribute of that Court, as the same power is exercised by a Court of Law, when its process has been abused, and the power of a Court of Chancery cannot be inferior.”

In the Mobile Cotton Press, &c. v. Moore & Magee, 9 Porter’s Rep. 679, we considered at length the right of a Court to interfere summarily, where a fieri facias issued by its clerk had been executed irregularly, &c.; and made these deductions from the authorities there reviewed, viz: “1. A party injured by the improper execution of a fieri facias may obtain redress, on motion to the court from which the writ issued. 2. That a sale of land will be set aside where the sheriff is guilty of a mistake, irregularity, or fraud, to the prejudice of either party, or a third person. 3.

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8 Ala. 876, Counsel Stack Legal Research, https://law.counselstack.com/opinion/branch-of-the-bank-of-alabama-v-hunt-ala-1846.