Hammond v. Cailleaud

43 P. 607, 111 Cal. 206, 1896 Cal. LEXIS 567
CourtCalifornia Supreme Court
DecidedJanuary 31, 1896
DocketNo. 15961
StatusPublished
Cited by21 cases

This text of 43 P. 607 (Hammond v. Cailleaud) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hammond v. Cailleaud, 43 P. 607, 111 Cal. 206, 1896 Cal. LEXIS 567 (Cal. 1896).

Opinion

Haynes, C.

This action was brought by plaintiff as referee in the partition suit of Finnerty et al. v. Pennie et al., to recover the sum of seventeen hundred and fifty dollars from the defendant. The action of Finnerty et al. v. Pennie et al., was for a partition of a certain lot situate on the corner of Natoma and Mary streets in the city of Ban Francisco, in which a decree was entered determining the interests of the several parties, the amount and priority of several liens thereon, and adjudging that said lot was incapable of partition, and ordering a sale thereof by Hammond, the plaintiff herein, who was duly appointed sole referee for that purpose, the sale to be subject to confirmation by the court.

The referee offered said property for sale at public auction, and at such sale the defendant herein became the purchaser upon his bid of seven thousand five hundred dollars, and thereupon deposited with the referee seven hundred and fifty dollars, that being ten per cent of the amount bid.

The purchaser opposed the confirmation of the sale upon grounds hereinafter stated, but the conrt confirmed the sale, and the referee executed and tendered a deed in due form, and demanded payment of the remainder of the sum bid, but the defendant refused to pay said balance or accept the deed.

These facts were reported to the court, and afterward an order was made for a resale of the premises, and directing the referee, in case such resale should not realize said sum of seven thousand five hundred dollars and the costs and expenses of the resale, to collect from defendant, by some proper proceeding, such deficiency.

To these facts, alleged in the complaint, the defendant answered, and also filed a cross-complaint and counterclaim. The answer, after denying the allegations of the complaint, alleged that said property was [212]*212offered for sale at public auction on the following terms and conditions, namely:

“ The property to be sold to the highest bidder, the purchaser to receive a perfect and valid title, free from imperfections, otherwise there to be no sale; the bidder upon acceptance of his bid, to deposit with plaintiff ten per cent of the sum bid, to secure the bid and sale to him, and the balance of the bid to be paid, if the title should prove perfect and valid, upon conveyance to the bidder of said property with a. valid and perfect title thereto, and after examination of said title by the bidder; and if the title should not prove to be perfect and valid and free from imperfections, nor made so within thirty days after notice by the bidder to plaintiff of defects therein, the said deposit of ten per cent to be returned by plaintiff to bidder on demand ”; and that he bid for said property said sum of seven thousand five hundred dollars, with the express agreement that if the title to said land should prove imperfect, invalid, and not free from all imperfections, there should be no sale, and that said deposit should be returned to him upon demand.

He further alleged that the title to said lot was invalid and not free from imperfections, that he notified plaintiff thereof, that plaintiff refused to make said title perfect, and that he thereupon demanded the return of his deposit. He admitted th’at said sale was reported to the court for confirmation, but denied that the terms and conditions thereof were reported; that he filed objections thereto, stating the terms under which his purchase was made and specifying certain defects in the title, but that the court decided that he would not be bound by the decision of the court thereon, nor by such confirmation, and refused to hear or consider his objections thereto. He admitted the tender of the deed, but denied that such tender was in pursuance of the terms of the sale, or that it would have conveyed a valid title, and averred his readiness and willingness to comply with the terms of the sale.

[213]*213He further alleged that the terms and conditions under which the property was resold were different from the terms and conditions of the first sale; that at the second sale it was expressly stated that the purchaser should take the title as it stood without any agreement that it was perfect or should be made so upon notice of defects, and that by reason of such change in the terms and conditions of sale the selling value of the property was greatly depreciated.

At the second sale one Denigan became the purchaser at the sum of five thousand dollars. The cross-complaint and counterclaim were interposed for the purpose of recovering the deposit of seven hundred and fifty dollars.

The cause was tried by the court, and findings and judgment were for the plaintiff for said sum of seventeen hundred and fifty dollars, with interest, and from said judgment and from an order denying his motion for a new trial the defendant appeals.

Appellant’s defense to said action is based upon two distinct propositions: 1. That his purchase was conditional upon his obtaining a good title, and that the title was not good; and, 2. That he is not liable for the deficiency or loss upon resale, because the terms and conditions of the two sales were materially different.

To these propositions respondent replies, in effect: 1. That the sale to appellant was confirmed by the court, and that order not having been appealed from, appellant is concluded as to all questions involved in the confirmation; and 2. As the referee had no power to give or impose any conditions of sale not contained in the decree or authorized by law, and as the rule of caveat empior applies to judicial sales, and as he is conclusively presumed to know the law, that he therefore purchased under the conditions imposed by the law, and not under different conditions alleged .to have been made by the referee without authority, and if so, the two sales were made under the same conditions.

1„ That the order confirming the sale to Oailleaud, the [214]*214first purchaser, was appealable, and became conclusive upon his failure to appeal, I think is clear.

In Boggs v. Fowler, 16 Cal. 560, 76 Am. Dec. 561, it was held, in a foreclosure case, that the purchaser by his act of purchase submitted himself to the jurisdiction of the court in that suit as to all matters connected with the sale, and was entitled to apply for such relief as the facts of the case might justify, and that upon his application the sale could be set aside and the satisfaction canceled.

In Hickson v. Rucker, 77 Va. 135, it was said: “By buying at such sale the purchaser selects his forum, comes into the case, and submits himself to the court as to all questions concerning the sale and his purchase.”

That in sales under a decree in equity the purchaser becomes a quasi party to the suit, see note to Mount v„ Brown, 69 Am. Dec. 368, and cases there cited, and Jones on Mortgages, sec. 1642.

The confirmation of a sale often involves rights of vast importance. A purchaser at a judicial sale may thereby be deprived of a purchase of great advantage to him, or have improperly imposed upon him a burden he should not bear. But it is urged by appellant that there is no provision of the statute under which he could have appealed from that order; that the decree in partition was interlocutory, that he was not a party and could not appeal therefrom. But the decree in this case was not interlocutory but final.

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Bluebook (online)
43 P. 607, 111 Cal. 206, 1896 Cal. LEXIS 567, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hammond-v-cailleaud-cal-1896.