Warfield v. Dorsey

39 Md. 299, 1874 Md. LEXIS 12
CourtCourt of Appeals of Maryland
DecidedJanuary 22, 1874
StatusPublished
Cited by19 cases

This text of 39 Md. 299 (Warfield v. Dorsey) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Warfield v. Dorsey, 39 Md. 299, 1874 Md. LEXIS 12 (Md. 1874).

Opinion

Stewart, J.,

delivered the opinion of the Court.

If there was any irregularity or unfairness about the sale reported in this case, to the prejudice of the appellant, he had the right and ample opportunity to have shown it. This has not been done, but he relies upon the Statute of Frauds, 29th Ch. II., chap. 3, as a sufficient defence for his non-compliance with the terms of sale; and the question now involved, is, whether that Statute, requiring a memorandum in writing as to certain sales of land, applies to a chancery sale ; or sale under mortgage, as provided by the 64th Art. of the Code.

The learned Judge of the Circuit Court, in delivering his opinion, has shown much and commendable research, and furnished a conclusive argument as to the .inapplicability of the Statute to sales of this description.

Chancery sales are neither within the letter of the Statute nor embraced by its policy. In regard to such sales, its provisions are not obligatory upon the Court, nor is there any reason why they should be applied upon any principle of analogy.

Such sales are conducted under the decrees or orders of the Court, which prescribe the terms, and are always guarded by its superintendence, and, therefore, cannot be considered within the mischief intended to be provided against by that celebrated Statute.'

Every intendment will be made to support them. The Court acts for all the parties, through its officer, the trustee, and they look to it for protection against the consequences of his acts or omissions. Kauffman vs. Walker, 9 Md., 240.

Whether the sale is made „by a trustee, according to our practice, or .by a master, as in England, we have been [303]*303referred to no case, where the sale, if made under the authority of the Court, has been set aside, upon the ground that the sale was not evidenced by a memorandum in writing, as provided by the Statute. On the contrary, the authorities are all the other way, so far as we have discovered. Chancellor Bland, in Andrews vs. Scotton, 2 Bl. C., 29, has very fully discussed the subject as to the authority and practice of the Court in regard to sales made in pursuance of its decrees or orders, and his rulings have been affirmed by this Court in Anderson vs. Foulke, 2 H. & G., 346. Throughout the extent of his opinion, which displays laborious research, and which is incorporated at length in the report of that case, there is no allusion by the Chancellor or the Court of Appeals to the Statute of Frauds, as affecting sales made by the Court, or under its direction.

In such case it is well settled, the Court is in truth the vendor, and not the trustee, who is its mere agent, and there is no sale until its approval.

The public auction of the property is a part of the proceeding constituting the sale; and the bidders make themselves parties, and, as such, have the right to interfere in the proceedings; their bids are propositions, and when accepted by the trustee acting for the Court, and the property is struck off accordingly, they have no power, at their pleasure, to retract them, and thus baffle and defeat the sale. If they fail to comply with all or any of the terms proposed and accepted, the Court has the power to compel compliance by attachment or other suitable process, according to the nature of the case. Code, Art. 16, seo. 131.

These provisions were intended to clothe the Court with adequate authority, if there was any doubt of its existence before, to compel compliance with the terms prescribed by its decree or order for the sale of the property.

[304]*304In the case of Richardson vs. Jones, 3 G. & J., 164, before the enactment of the Code, these powers of the Court were fully recognized. It was distinctly held by this Court that, where a sale is made under a decree or order in Chancery, and no bond or security is given for the payment of the purchase money, it was the practice, sanctioned by this Court in Anderson vs. Foulke, 2 H. & G., 346, to compel the purchaser to complete his purchase by an order on him, in a summary way, to pay or bring the money into Court; and that from necessity, arising from the peculiar character of the transaction. Before the ratification the trustee cannot sue, because the sale is not complete and binding — the contract is not perfect— nor can he' sue at law after the ratification, because it becomes thereby a sale by the Court — a contract with the Court, and the whole reasoning of the Court is utterly inconsistent with any theory, that the contract of sale was affected by the Statute of Frauds.

Chancellor Johnson, in Harrison vs. Harrison, 1 Md. Ch. Dec., 331, conforming to the practice of the State, denied the applicability of the Statute to chancery sales. This practice is not peculiar to our State, but holds everywhere, so far as we can discover.

In Wood vs. Mann, 3 Sumner, 310, 318, Judge Story refers.to the case of Richardson vs. Jones, 3 G. & J., 164, and goes further.: “No doubt is now entertained that a Court of Equity may, by attachment compel a purchaser at a sale by the Master, to complete his purchase by paying in the purchase money. It stands upon the plainest principle of the Court, that he who makes himself a party to the proceedings of the Court, and undertakes to do a particular act, under the decretal orders of the Court, may be compelled to perform what he has undertaken. It is a mere incident to the due exercise of the principal jurisdiction, and indispensable to the enforcement of the orders of the Court upon persons who have [305]*305submitted themselves to its jurisdiction; a sale might otherwise become a mere mockery and give entire immunity to purchasers to speculate upon the chances of the sale. The notion is utterly groundless, that no person but a direct party to the suit, can be made subject to the orders or process of the Court.”

In Smith vs. Arnold, 5 Mason, 420, under the Rhode Island Statute of Frauds, the same doctrine is reiterated. “In sales directed by the Court of Chancery, the whole business is transacted by a public officer under the guidance and superintendence of the Court itself; the sale is not final until a report is made to the Court and approved. Either party may object to the report, and the purchaser himself who becomes a party to the sale, may appear before the Court, and if any mistake has occurred, may have it corrected. He becomes a party in interest, and may represent- and defend his own interests; and if he acquiesces in the report, he is deemed to adopt it, and is bound by the decree of the Court, confirming the sale. He may be compelled, by the process of the Court, to comply with the terms of the contract. So that the whole proceedings are under the direction of the Court; and the case does not fall within the mischiefs supposed by the Statute.”

Chancellor Kent, in Brasher vs. Cortlandt, 2 Johns. City R., 505, in regard to the power of the Chancery Court to compel a purchaser to complete his purchase by attachment, entertains similar views. “I do not mean at present,” he remarks, to lay down any general rule on the subject of coercing a purchaser by attachment; but I ought not to hesitate, under the circumstances of this case; and I have no doubt- the Court may, in its discretion, do it in every case, where the previous conditions of the sale have not given the purchaser an alternative.

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Bluebook (online)
39 Md. 299, 1874 Md. LEXIS 12, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warfield-v-dorsey-md-1874.