Guest v. Foster

166 S.W. 620, 159 Ky. 1, 1914 Ky. LEXIS 730
CourtCourt of Appeals of Kentucky
DecidedMay 14, 1914
StatusPublished
Cited by9 cases

This text of 166 S.W. 620 (Guest v. Foster) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Guest v. Foster, 166 S.W. 620, 159 Ky. 1, 1914 Ky. LEXIS 730 (Ky. Ct. App. 1914).

Opinion

Opinion of the Court by

Judge Carroll

— Affirming.

The Citizens Trust Company brought suit to enforce the collection of a promissory note for $4,500, executed to it by Anna P. Guest and her husband and the trustee of Mrs. Guest, and to have a tract of land containing 169 acres, upon which there was a mortgage to secure the payment of the note, sold to satisfy the debt. There was a prior mortgage on the land for something over $6,000, given to the Commonwealth Life Insurance Company, and this company came in by cross-petition and asked for personal judgment and a sale of the land to satisfy its debt. There was no averment in either the petition [3]*3or the cross-petition as to the divisibility or indivisibility of the land. These pleadings merely ashed that the land be sold and that out of the proceeds of sale the debts be paid.

The Guests entered their appearance to the action, and, following this, there was a personal judgment against them for the amounts due to each of the companies, amounting in the aggregate to more than $11,000. The judgment, which also directed a sale of the land, set out “that it could not be divided without materially impairing its value,” and also contained this provision: ‘ ‘ Said property to be sold on a credit of six, twelve and eighteen months, and the purchaser shall be required to execute bond with good surety for equal parts of the purchase money, and a lien shall be retained on the property as additional security. A deposit of $200 shall be required upon the purchase price of said property at the time of sale. Privilege is given to the purchaser to pay the purchase price in cash without executing bonds, or to pay the purchase money at any time before maturity. ’ ’

Under this judgment the land, after being appraised for $11,865, was offered for sale, when John B. Foster became the purchaser at the price of $8,000, and executed bonds for equal installments of the purchase price, due in six, twelve and eighteen months. He also paid the commissioner in cash $200.

To this report of sale, the Guests filed exceptions, ashing that the sale be set aside (1), because there was no allegation in the pleadings or agreement of parties or affidavits or report of a commissioner showing whether or not the land could be divided without materially impairing its value, and it was averred that it could be divided without materially imparing its value and would sell for a much better price if sold in parcels than as a whole; (2), because the judgment required a ■deposit of $200 to be made by the purchaser and gave the purchaser the privilege of paying the purchase money in cash or at any time before maturity; and (3), because the price at which the property was sold was inadequate.

On these exceptions the court heard evidence offered by both the Guests and the purchaser, Foster, and from the judgment overruling the exceptions the Guests and the Citizens Trust Company appeal. The appeal, however, of the Citizens Trust Company does not avail it [4]*4anything, as it did not file any exceptions to the report of sale. So that the only matter to be considered on the record before us is whether the court erred in overruling the exceptions filed by the Guests.

On the trial' of these exceptions several witnesses were introduced by the exceptors as well as by the purchaser, and it appears from their evidence that this land fronts on the main street of Crab Orchard, a sixth class town, for a distance of about 1,800 feet, and then runs back probably a mile in a kind of oblong square, and that the dwelling house and improvements are situated near the street, and the best of the land is that part fronting on the street.

The witnesses for the Guests testified that the land could have been sold to better advantage if the front had been divided into town lots and these lots sold separately and the remainder of the land sold as a body, or if it had been divided into two tracts, it being, according to their opinion, susceptible of advantageous division. They further said that the land was worth about $15,000.

Other witnesses testified, and the weight of the evidence shows that there was very little demand for town lots in Crab Orchard, and that, considering the situation and condition of the land and the location of the buildings, it was not susceptible of advantageous division, and it could be and was sold to as good if not better advantage as a whole than if divided into two tracts or partly into town lots, and brought at the sale a fair price and as much as it was reasonably worth. It might also be noticed that no offer was made on the hearing of the exceptions by any person to pay more for the land than it brought at the public sale.

A careful reading of the evidence heard on the exceptions satisfies us, as it did the lower court, that the land was not susceptible of advantageous division and brought at the sale a fair and reasonable price; at any rate, it is very clear that the sale was not at a grossly inadequate price.

But notwithstanding this conclusion on the evidence, it is insisted that the exceptions should have been sustained, because sec. 694 of the code was not observed in ordering the sale. So much of this section as is pertinent reads as follows:

“Before ordering a sale of real property for the payment of debt, the court must be satisfied by the pleadings, [5]*5by an agreement of the parties, by affidavits filed, or by a report of a commissioner or commissioners, whether or not the property can be divided without materially impairing its value; and may cause it to be divided, with suitable avenues, streets, lanes or alleys; or without any of them.”

Neither the petition nor the cross-petition contained any reference to whether the land could be divided without materially impairing its value, and it does not appear that before entering the judgment there was any agreement of the parties or affidavits or report of a commissioner showing whether the land could be divided without materially impairing its value, or that it would be more advantageous to sell it as a whole. The judgment, however, recited that the land could not be divided without materially impairing its value, and directed that it be sold as a whole.

As directed by the code, the court before entering a judgment ordering the sale of land should be advised in the manner provided by the code concerning the divisibility or the indivisibility of the land, and after being so advised should direct the land to be sold in such a manner as would be most advantageous to the parties interested in the sale.

It is not, however, required that the court, before directing a sale of the land as a whole or directing its division, should have before it an agreement of the parties, or affidavits, or the report of commissioners, as the court may from an inspection of the pleadings determine how the land should be sold. Thus it was said in McFarland v. Garnett, 10 Ky. L. R., 91:

“Section 694 of the Civil Code, which directs that ‘before ordering a sale of real property for the payment of debt, the court must be satisfied by the pleadings, by an agreement of parties, by affidavits filed, or by a report of a commissioner, whether or not the property can be divided without materially impairing its value,’ does not require an allegation in the pleadings to the effect that the property is divisible or indivisible.

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Cite This Page — Counsel Stack

Bluebook (online)
166 S.W. 620, 159 Ky. 1, 1914 Ky. LEXIS 730, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guest-v-foster-kyctapp-1914.