Jenkins v. Pine Grove Land Co.

131 So. 660, 171 La. 530, 1930 La. LEXIS 1952
CourtSupreme Court of Louisiana
DecidedDecember 1, 1930
DocketNo. 30282.
StatusPublished
Cited by1 cases

This text of 131 So. 660 (Jenkins v. Pine Grove Land Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jenkins v. Pine Grove Land Co., 131 So. 660, 171 La. 530, 1930 La. LEXIS 1952 (La. 1930).

Opinion

OVERTON, J.

Sarah Jenkins, now deceased, Wás the owner of three of a series of promissory notes, secured by special mortgage and vendor’s privilege on property, located on the shores of Lake Pontchartrain, in the parish of St. Tammany. She died, leaving the plaintiffs, Percy Jenkins, Sidney Jenkins, Francis Jenkins, and Mrs. Edna Jenkins, wife of Eugene Mumford, as her heirs, who inherited the notes owned by her, each of which is for the sum of $1,333.33.' The first of the notes was paid, at maturity, but the remaining two were not. At the time of the death of Sarah Jenkins, the remaining of the series, secured by the same privilege and mortgage, three in number, each for $4,333.33, were outstanding, owned by H. A. Soulie, the first of which was paid at maturity, but the remaining two have not as yet been paid. All of the notes were made by the Pine Grove Land Company, Inc., the defendant, named in the title of the case.

Two of the notes, owned by plaintiffs, not having been paid at maturity, the mortgage securing them was foreclosed, at plaintiffs’ instance, by executory process. The property was offered without the benefit of appraisement, and at the sale F. C. Codifer, who had acquired Soulie’s interest, in the two remaining notes, held by him, bid $500 for the, property on which the mortgage rested. No one else bid on the property. The sheriff then remarked, substantially, that it would be a *533 sacrifice to let the property go at that price, and, without adjudicating the property, left the auction stand, going to his office, where, within four or five minutes, he got in communication, by long-distance telephone, with one of plaintiffs’ attorneys, who tendered a bid'of $3,500 for the property. In the meantime, Oodifer insisted that his bid should be accepted, and he recognized as the legal adjudicatee of the property, and tendered to the ■sheriff the amount of his bid, at the same time insisting on the execution of a deed to him by the sheriff. The sheriff refused the. tender, and, upon receiving the bid by long-distance telephone, returned to the auction stand, from which he had been absent for a few minutes, and announced that he had a bid for $3,500, and ashed for other bids. Codifer then, after protesting against the continuation of the auction, and after reserving his rights under his bid, bid $3,550, and, no one else bidding, the property was adjudicated to him for that sum.

Immediately thereafter, Oodifer ruled the sheriff and plaintiffs to show cause, why he should not be recognized, in law, as the adjudicatee of the property on his bid of $500. There was judgment on the rule, rejecting this demand, and decreeing Oodifer the adjudicatee of the property for the sum of $3,-550.

Oodifer must fail in his rule to be declared the adjudicatee of the property for the sum of $500. His bid, at that sum, was not accepted by the sheriff, as is evidenced by the fact that the sheriff did not adjudicate the property to him for that amount. There must be an offer and an acceptance in a sheriff’s or auction sale as well as in a private or other sale. Thus, it is said, in Corryolles v. Mossy, 2 La. 504, that: “We cannot distinguish between a proposition made to purchase at auction, from that which may take place in a private contract. Assent is required from both parties, in each mode of contracting, before the agreement is complete. * * * ” The property does not pass until the offer is accepted, which is shown by the adjudication of the property. Without an adjudication title does not pass.

Whatever remedy the bidder may have, to whom property has not been adjudicated, he must find in some other remedy than in one to be recognized, by operation of law, as the adjudicatee. United States v. Vestal (D. C.) 12 F. 59. Here, if the bidder had any right to do so, he has not sought to annul the sale t.o the end that the property might be reoffered, but has rather studiously avoided any such course.

In fact, though it is not necessary to the decision, .we are not prepared to hold that the sheriff’s conduct, in this instance, was improper.. Auctioneers are given considerable latitude, consistent with fairness, in obtaining the best price possible for the property. Richards v. Holmes, 18 How. 143, 15 L. Ed. 305. Moreover, it has been held, in another jurisdiction, that a bid by long-distance telephone is valid, where, as here, upon a communication made by the sheriff, the bid was made: Victor Inv. Co. v. Roerig, 22 Colo. App. 257, 124 P. 349.

In this ease, the bidder, it may be said, is not in position to annul the adjudication made to' him for $3,550. It was unnecessary for him to make such bid to protect what rights he might have acquired under his $500 bid. Having made the bid, he is bound by the adjudication.

The case also presents a question as to the proper distribution of the proceeds of the sale. Prior to the sale, and soon after plaintiffs had instituted their proceedings by ex- *535 ecutory process, Soulie, claiming to be tbe owner of tbe remaining notes, secured by tbe áame mortgage, filed an intervention, in wbicb he asked that executory process issue to satisfy the notes held by him, and in which he also asked that he be paid ratably with plaintiffs out of the proceeds of the sale.

Later, though before the sale, but after executory process had issued and Soulie had filed his intervention, claiming, among other things, the righ't to be paid ratably with plaintiffs, out of the proceeds of'the sale of the property mortgaged, Soulie sold the two notes, still held by him, to Codifer. Codifer was then substituted in the intervention in place of Soulie, who passed out of the proceedings.

Plaintiffs urge that they are entitled to payment out of the proceeds of the sale by preference over Codifer. This position rests upon the contention that Sarah Jenkins, their ancestor in title, acquired the notes held by them, from Soulie, and that Soulie,’after his rights and plaintiffs’ rights had become fixed as to the proceeds to be derived from the sale by the institution of the foregoing proceedings, sold the notes, held by him, to Codifer, and that, as Soulie, after these rights had become fixed, could convey no greater rights than he had, his transferree, Codifer, is in no better position, and hence, no more than Soulie could, can he invoke the doctrine that transferees of mortgage notes, secured by the same mortgage, though deriving their titles from the same author, share ratably in the proceeds of the sale, but is bound by the doctrine that a transferror of one or more of a series of notes, secured by the same mortgage, cannot compete with his transferree in the proceeds of the sale.

We find it unnecessary to consider-the doctrine, invoked by plaintiffs, for we' think the record discloses that Sarah Jenkins was not, in reality, a transferree of Soulie, save only in form.

It appears that she and Soulie owned adjoining property on the shores of Lake Pontchartrain in the parish of St. Tammany. Such property, in 1925, was in demand. Miss Jenkins had received offers for hers, but only such as were wholly unsatisfactory. Soulie, who was her neighbor, suggested to her that they sell their property together, as if it were one tract. This was satisfactory to Miss Jenkins, and to carry out this she executed in favor of Soulie a power of attorney.

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131 So. 660, 171 La. 530, 1930 La. LEXIS 1952, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jenkins-v-pine-grove-land-co-la-1930.