Holdsworth v. Shannon

21 S.W. 85, 113 Mo. 508, 1893 Mo. LEXIS 14
CourtSupreme Court of Missouri
DecidedJanuary 31, 1893
StatusPublished
Cited by26 cases

This text of 21 S.W. 85 (Holdsworth v. Shannon) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holdsworth v. Shannon, 21 S.W. 85, 113 Mo. 508, 1893 Mo. LEXIS 14 (Mo. 1893).

Opinion

Sherwood, J.

The salient questions which lie at the threshold of the investigation necessary in regard to the merits of this controversy are three, and these: First. Was the sale made at an unusual hour? Second. Was the property sold for an inadequate price, which, coupled with other circumstances, authorized the sale to be set aside? Third. Are the defendants, Hinton and Harbison, to be regarded as innocent purchasers, that is, purchasers without notice and in good faith.

Of these in their order.

I. As to the first. The preponderance of the testimony shows the sale occurred just before eleven o’clock. The testimony of Shannon, the sheriff trustee, leaves no doubt on the point if we are to look to his testimony alone; it is conclusive on the point of the sale in question having been made at an unusual hour, and conclusive also of the prevalent custom to make such sales at a later period in the day. He says: “I generally legan my sheriff’s sales from half past one o’clock to two o’clock in the day. In the course of my duties as sheriff I had never made a sale under a trust deed or %mder an exemtion as early in the day as I in fact made this one. I usually made them about half past one after we had got back from dinner. * * * Had it not been for the circumstances I have related, I would not have made the sale at that time of day. In fact, I know Iwouldn’t; it was not the custom.”

The testimony of other witnesses corroborates that of the sheriff as to the customary time of making such sales. Hinton, one of the defendants, says: “Sales are most usually made after dinner.” Osborne, a [519]*519•witness interested in the same trustee’s sale, though in regard to another tract of land, says: “The bulk (of sales) is made between twelve and five o’clock.” Geyer, another witness, says:. “The majority of the sales are made about one o’clock, or between one and two o’clock.” Other witnesses testify about sales having occurred before the customary time as heretofore mentioned; but not one of them is able to state that such sales did not occur with the consent .and in the presence of all parties in interest.

The occasional occurrence of some such sporadic instances would be but the exception which proves the rule, and would have no more power to break the bands of the prevalent custom than would the early advent of a single swallow to break the icy chains of winter and bring on untimely wing the balmy influences of the vernal season. The finding of the circuit court was that the sale took place at an unusual hour, and we see no reason to disapprove of the correctness of that conclusion.

II. Was the land sold at an inadequate price? On this point, as might be expected, the opinions of the various witnesses differ considerably. The estimates placed upon the value of the land in litigation varies in amount from $1 to $4 per acre. Now if we strike a mean between the highest and the lowest estimates of value, we find that this will place the reasonable price of the land at $2.50 per acre, which amounts to $400 for the tract; and this is what Hinton asked the representative of the Watkins company for it, when approached by him a week or so after the sale, in order to see if an adjustment could not be affected. This one hundred and sixty acres had a hewed log house on it with a stone chimney, stables and smokehouse, and about ten acres in cultivation, also an excellent spring on the tract, and about forty acres of it, taking differ[520]*520ent portions of it for that purpose, could be put in cultivation. The sum of $400, then, ought to be taken as a reasonable price for the land, especially so, as Wills, who was interested in the purchase of the southwest quarter, says that quarter “was worth probably $250 to $300;” but it is conceded on all hands that the last-named quarter, by reason of having no. improvements or spring on it, was much less valuable than the one in suit. So that if $400 is to be taken as the proper estimate to place on the value of the property in controversy, then its sale for $121 was a sale for but little over one fourth’of its value.

The general rule is stated in the books that mere inadequacy of price without more, unless so gross as to shock the moral sense, is insufficient to set aside a sale of land inade under a deed of trust, foreclosure or execution. But in such case, the sale must be fairly conducted in all other respects. Several instances have occurred where this court has set aside sales where the price was inadequate, though not grossly so, where there were other attending circumstances, rendering it inequitable to let the sale in the given instance stand; as for example, in Stoffel v. Schroeder, 62 Mo. 147, where the property sold under a deed of trust at $5,000 and was worth $8,500, and the sale was set aside, having been made at an unusual hour, to-wit, eleven o’clock a. m. It is true that case smacked of fraud, while this does not; but in one respect they are parallel in principle, that is, the trustees in the former case and the sheriff-trustee in the latter, were prevailed upon to sell the property at an unusual hour, and in consequence of this, the property in the case at bar only brought about one fourth of its reasonable value. The fact that tlie sheriff-trustee wás pressed to attend to other duties did not authorize him to do this to the [521]*521neglect of other duties and the detriment of other interests.

In Vail v. Jacobs, 62 Mo. 130, where property-worth from $5,000 to $8,000, was struck off to the assignee of the notes, the only bidder at the sale, for $1,000, we set the sale aside, though it was made within usual hours. In the cases mentioned, others are instanced from our own reports teaching the doctrine that a trustee in the exercise of the power of sale, must act with the strictest impartiality and integrity, and, if it appear that they have abused their trust in any manner by a fraudulent combination with anyone to the detriment of any party in interest, or even if it appear that substantial injury has resulted from their acts in failing or neglecting to discharge their duties by exercising a wise and sound discretion, equity will grant relief. Goode v. Comfort, 39 Mo. 313.

In Stoffel v. Schroeder, supra, we said: “It has always been the doctrine of this court, as well as of courts elsewhere, that the mode of sale referred to, being a harsh method of disposing of the equity of redemption, should be watched with jealous solicitude, and overthrown, if not conducted with all fairness and integrity, and that the trustee is bound to act bona fide, as, in exercising the power, he becomes the trustee of the debtor, and should adopt all reasonable modes of proceeding in order to render the sale beneficial to the debtor, and cannot shelter himself under a bare literal compliance with the conditions imposed by the terms of the power.”

Shaw, C. J. in Howard v. Ames, 3 Met. 311, said: “In executing the power he becomes the trustee of the debtor, and is bound to act bona fide, and to adopt all reasonable modes of proceeding, in order to render the sale most beneficial to the debtor.”

[522]*522Vice-Chancellor Sir Knight Bruce uses this language: “A mortgagee having a power of sale cannot, as between him and the mortgagor, exercise it in a manner merely • arbitrary, but is, as between them, bound to exercise some discretion; not to throw away the property, but to act in a prudent and business-like manner,

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Bluebook (online)
21 S.W. 85, 113 Mo. 508, 1893 Mo. LEXIS 14, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holdsworth-v-shannon-mo-1893.