Chamberlain v. Larned

32 N.J. Eq. 295
CourtSupreme Court of New Jersey
DecidedMarch 15, 1880
StatusPublished
Cited by3 cases

This text of 32 N.J. Eq. 295 (Chamberlain v. Larned) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chamberlain v. Larned, 32 N.J. Eq. 295 (N.J. 1880).

Opinion

The opinion of the court was delivered by

Beasley., 0. J.

The appellant in this ease is the purchaser at a foreclosure-sale. The sale in question was made by the sheriff, and,, before the delivery of a deed by the officer, was set aside by the chancellor.; and it is the propriety of this order which, is called in question on this review.

At the threshold of the inquiry here, the counsel of the respondent objects to the jurisdiction of this court, for the reason that such an order as this is not appealable. The-ground assigned for this position is, that such an order ia only incidental to the proceedings, and is not definitive of any established right. But this contention, I think, is-plainly unfounded. A purchaser at an official sale becomea invested with a fixed and definite legal right, which -ia[297]*297recognized and enforced by the law, and of which he cannot be deprived except upon some legal or equitable ground. The consequence, therefore, is, that if such right be capriciously abrogated, or its enforcement refused, without just cause, he is, in legal contemplation, injured, and, as to him, the order producing such an injurious result is final in its nature. If such, then, be the position of this appellant, and this is his contention, he is obviously a person aggrieved by an order or decree of the court of chancery, and, by force of the statute, has a right to apply to this court for the redress of his wrong. The decisions are pointed to this effect. In the case of National Bank of the Metropolis v. Sprague, 6 C. E. Gr. 458, an appeal was held to be properly taken from an order of the chancellor refusing to set aside a sale, the reason assigned for such decision being that the matter involved in such an order did not rest in discretion. In the opinion read in that ease, it is expressly said that, on such an occasion, the chancellor “ has no discretion in the decision, but must determine according to the settled rules of law and equity.” The judgment in Smith v. Alton, 7 C. E. Gr. 572, is of the same complexion. These were appeals in which the owners of the property sold were the actors; but that is an immaterial circumstance, for it would’seem inconsistent with all rational principles to maintain that, in such a respect, the owner of the property stands upon a higher ground than the purchaser. If the motion to set aside the sale be not a matter of discretion, when urged by the owner, neither can it be such when resisted by the buyer. But as the point is settled by copious authority, it is not necessary to discuss further its principles. The doctrine is stated by Daniel, in his Chancery Practice, p. 14-61, in these words: “ It has also been determined by the house of lords, that a purchaser under a decree, though no party to the suit, may appeal from an order setting aside a bidding and ordering a new sale.” The cases cited in support of this are Ryder v. Earl Gower, 6 Bro. P. C. 306, and Barlow v. Osborn, 6 H. of L. Cas. 556. In the state of New York, during the time of [298]*298the old court of errors, an appeal of this character was entertained in the case of Collier v. Whipple, 13 Wend. 224. The same course is recognized in the supreme court of the United States in Blossom v. Milwaukee & C. R. Co., 1 Wall. 656, 2 Wall. 234.

The order in question was the proper subject of an appeal on the part of the purchaser.

The merits of the order setting aside this sale are, therefore, to be considered and disposed of.

The facts can be fully ascertained by referring to the opinion of the chancellor, so that it is not necessary that they should be restated in detail. Only a few of them are important, in my judgment, and I shall, therefore, confine my attention to such of them as are deemed of that character.

The fee of the property mortgaged, and which was sold, was claimed by Mr. Larned as the receiver of the West Line Railroad Company. It consisted of a tract situated in Communipaw Cove, part of which had been reclaimed, the x’esidue being still under water. . In the foreclosure suit, this land was advertised for sale on the 27th of January, 1876; it was not sold until nearly three years'afterwards, the sale having been adjoui’ned from week to week. The sale finally took place on the 26th of December, 1878, there having been one hundred and fifty-three adjournments. These postponements had been made by the sheriff* of his own motion, the attorney-general, who represented The Trustees for the Support of Public Schools, who were the complainants in the fox-eclosure suit, being unawai’e of the course thus taken by the officer. The property brought, at this sale, the sum of $123,000, being struck oft* to the appellant, as the agent of the Easton and Amboy Railroad Company.

The reason of this prolonged delay in selling this pi’operty was, because the title was under a cloud. The receiver of the New Jersey Central Railroad Company, in behalf of that corporation, claimed these premises under an alleged paramount right, and, as it was obvious that such a eonteixtion impaired the marketable value of the property, the [299]*299receiver of the "West Line road had been prevented, on this ground, by the order of the chancellor, from disposing of it at public sale. This prohibition had occurred between the day of sale designated in the sheriff’s advertisement and the day on which the sale took place. During this same interval, the receiver of the Central road had prevented the sheriff' from selling, by an injunction issued out of the circuit court of the United States. It was upon the dissolution of this injunction that the sheriff proceeded to make the sale above mentioned.

It thus appears that the’ sheriff’s sale took place on the 26th of December, 1878. The deed was to be delivered on the 2d of the following January. On the 30th of December, the chancellor wrote a letter to the sheriff, stating that application had been made to him for time to bring in a petition to set aside this sale, on the ground of misapprehension as to the time of the sale on the part of some parties interested, and instructing the officer to defer the delivery of the deed for one week from the date of such communication.

It is this direction to the sheriff that forms the subject of tbe first exception taken in behalf of the appellant, to the proceedings in the court of chancery. The contention on this point was pressed with unwonted vehemence, the argument being that the course pursued in this particular by the chancellor was irregular and illegal; that the statute imposed the duty on the sheriff' to deliver a deed to the purchaser on the stipulated day; that the right to such deed was a right vested in the purchaser, of which he could not be depi’ived except by. due process of law, and that this letter to the sheriff cannot, in any just sense, be said to be such due process. But it is the opinion of this court that this contention is not supported by right, reason, or by any principle that regulates equitable procedures. It is true that a- purchaser at a sheriff’s sale acquires a vested, right, which is, like all other legal rights, indefeasible except by the operation of legal methods; but then one of such [300]*300inethods is the judgment of the court under whose order such sale has .occurred, in the exercise, of its supervision over the execution of its own process.

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Bluebook (online)
32 N.J. Eq. 295, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chamberlain-v-larned-nj-1880.