Kurfees v. Davis

173 S.E. 157, 178 Ga. 429, 1934 Ga. LEXIS 67
CourtSupreme Court of Georgia
DecidedFebruary 15, 1934
DocketNo. 9746
StatusPublished
Cited by6 cases

This text of 173 S.E. 157 (Kurfees v. Davis) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kurfees v. Davis, 173 S.E. 157, 178 Ga. 429, 1934 Ga. LEXIS 67 (Ga. 1934).

Opinion

Bussell, C. J.

(After stating the facts.) In its last analysis, the question before us is whether the superior court, in the circumstances of this case and for the reasons stated, had the power to divest Mrs. Kurfees of her property right in her judgment, and destroy the priority of the lien of the execution issued and recorded in her favor by virtue of that judgment. There is no evidence that Mrs. Kurfees took any steps in furtherance of the sale, or that by [433]*433any misrepresentation or fraud on her part she contributed to the result of the sale which the petitioner sought to have set aside. If it be insisted that before the sale the security deeds were so superior to the lien of Mrs. Kurfees’ judgment that the effect of the sale and the confirmation thereof would be to give Mrs. Kurfees such an advantage as would be unconscionable, it is only necessary to say, as we have already stated, that one’s property right in a judgment is always subject to be, by operation of law, either en-' hanced or diminished in value, and if the parties in this case, without examination of the records and by their own action, placed the lien of Mrs. Kurfees’ judgment in first place with regard to its binding force upon the Tremont hotel property instead of in third place, they have no ground of complaint against the plaintiff in error.

It is conceded that the only reason why the purchaser asks that the sale, which the court had confirmed at its instance, should be set aside is because it bought in ignorance of the fact that the lien of Mrs. Kurfees’ judgment had not been extinguished. In other words, the purchaser found out (when it already had constructive notice of the fact that Mrs. Kurfees’ judgment was alive) that it would have to pay five or six thousand dollars more for the property than it supposed it would at the time it made its bid. This, it alleged, was due to misrepresentations or mistakes on the part of the court’s receiver. In these circumstances (and if the court had power to set aside the order of confirmation), it may be that the court might have Teduced the amount of the purchaser’s bid by deducting the amount of Mrs. Kurfees’ fi. fa., in the exercise of some broad power with which a court of chancery is clothed. But the court would have had no power to set aside the order confirming the sale to the purchaser, for the express purpose, as is plainly disclosed by the petition, of affecting the status of Mrs. Kurfees’ judgment resulting from the sale, if not indeed of obliterating and destroying the value of the judgment altogether.

That the receiver’s sale did not divest or affect the lien of the judgment of Mrs. Kurfees, who was a stranger to the proceedings under which the receiver was appointed and the sale was ordered, is well settled. “A receiver’s sale is subject to liens of those who are not parties to the receivership proceeding. A lienholder has a right of which he can not be deprived without an opportunity for a day [434]*434in court.” 4 Pomeroy’s Eq. Jur. (4th ed.), § 1631; Denny v. Broadway National Bank, 118 Ga. 221 (44 S. E. 982); Empire Cotton-Oil Co. v. Park, 147 Ga. 618 (95 S. E. 216). So we come to the question, do the pleadings and evidence make such a case as to authorize the court to relieve the bank from its bid? As we have already stated, the pleadings and evidence show that the purchase of the property encumbered with the lien of Mrs. Kurfees’ judgment was not the result of any act on her part. Nor was it the result of fraud, or of mistake unaffected by the purchaser’s own negligence. We are of the opinion that a corrrt of equity can not relieve a purchaser at a judicial sale from his contract, if to do so would be to prejudicially affect the rights of any one; for the reason that a receiver’s sale is a judicial sale, and tjie maxim caveat emptor applies. This our court has many times decided, and the general rule is stated in the Civil Code (1910), § 6054: “The purchaser must look for himself to the title and soundness of all property sold under judicial process. Actual fraud or misrepresentation by the officer or his agent may bind him personally. No covenant of warranty binds him individually, unless made with that intention and for a valuable consideration.” It is stated in 53 C. J. 218, § 350: “It may be laid down as a general rule that he [the purchaser at a judicial sale] must take such title as an examination of the proceedings will show that he can get, and is bound to ascertain for himself beforehand what title he will obtain by the sale.” See Pinkston v. Harrell, 106 Ga. 102, 104 (31 S. E. 808, 71 Am. St. R. 242), where it was said: “That a purchaser at a judicial sale is bound to comply with his bid, even though he gets no title ,to the property sold, is the well settled law of this State.” See also Colbert v. Moore, 64 Ga. 502; Jones v. Warnock, 67 Ga. 484. Under the doctrine of caveat emptor, a purchaser at a judicial sale must keep his eyes open, and “look for himself” as to the state of the title he will obtain by the sale. The execution dockets and other records are open to him; and it is his duty, if he wishes to protect himself, to ascertain the status of the title. It was said in Wylly v. Gazan, 69. Ga. 506, that the principle that relief will not be granted to a purchaser who has been injured by his own negligence “applies with increased force to judicial sales, where the doctrine of caveat emptor controls. At such sales a purchaser seeking relief would be obliged to show actual fraud or mistake, [435]*435unaffected by his own negligence, of a character so gross as to amount to actual fraud.” As said in the Civil Code, § 4581, “If the party, by reasonable diligence, could have had knowledge of the truth, equity will not relieve.” In Keith v. Brewster, 114 Ga. 176 (39 S. E. 850), it was said: “While equity will, on seasonable application and under proper circumstances, relieve a party from the injurious consequence of an act done under a mistake of fact, it will not do so if such party could by reasonable diligence home ascertained the truth as to the matter concerning which the mistake was made.” (Italics ours.) In Stone v. Moore, 75 Ga. 565, although the facts of the case were somewhat different from those of the case at bar, this court held: “When the consideration of a contract is for land, the purchaser contracts with his eyes open. . . Such things as the soil growth or springs on the land are open to inspection, and he is wilfully negligent if he fail to look and see for himself; it is his fault and negligence, and he can not be heard, either at law or in equity, to complain of the conduct of the other party, the effects of which could have been averted by slight diligence on his part.” We are of the opinion that in such case as this, where encumbrances and judgment liens duly entered on the public records provided for that purpose are open to inspection, the purchaser is negligent if he fail to look and see for himself, and neither law nor equity will relieve him of. his own want of diligence. Roberts v. Smith, 137 Ga. 30 (72 S. E. 410), was a case in which the purchaser at a judicial sale (administrator’s sale) sought to be relieved from his bid, on the ground that “he bid on the land under a mistake of fact that a different lot was being offered for sale.” This court said: “If the party by reasonable diligence could have had knowledge of the truth, equity will not relieve.

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Bluebook (online)
173 S.E. 157, 178 Ga. 429, 1934 Ga. LEXIS 67, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kurfees-v-davis-ga-1934.