Layton v. Rhode Island Hospital Trust Co.
| Decision Date | 15 April 1913 |
| Docket Number | 3,818. |
| Citation | 205 F. 276 |
| Parties | LAYTON v. RHODE ISLAND HOSPITAL TRUST CO. |
| Court | U.S. Court of Appeals — Eighth Circuit |
Troy Pace, of Harrison, Ark., for appellant.
J Merrick Moore, of Little Rock, Ark (Moore, Smith & Moore, of Little Rock, Ark., on the brief), for appellee.
Before HOOK and SMITH, Circuit Judges, and VAN VALKENBURGH, District judge.
This is an appeal by a purchaser from an order, on motion of the judgment creditor, vacating a judicial sale because of inadequacy of price, coupled with improper conduct affecting the bidding.
The appellee, as trustee for bondholders, obtained a decree for $67,250, and the foreclosure of a mortgage and sale of the mortgaged property. Its solicitors, who did not reside in the locality, employed a local attorney to attend the master's sale as its representative. They advised him that the appellee had not obtained authority from the bondholders to bid at the sale, and that he should make no bid in their behalf. Having learned that certain persons would probably offer as much as $2,000, he interested the appellant, he says to secure competition, and was retained to bid for him at the sale. It was generally known among those who were there that he represented the appellee, the judgment creditor; but it was not so known that he was without authority to bid for the property and use the large judgment on the purchase price. In response to an inquiry at the instance of another party who expected to bid, he said that if necessary to buy the property for the appellee, he intended to go as high as $20,000. There was a dispute as to this; but the trial court so found on direct, substantial testimony at the oral hearing, and on this appeal we take it as true.
The attorney's agency for the appellant was not disclosed until his last offer at the sale, $2,550, was accepted by the master, and he named him as the purchaser. Before this it was believed he was acting for the appellee. It is significant that the appellant had another representative at the sale. He was the cashier of the bank of which appellant was president and, though he acted in concert with the attorney, he took no open part. Another bidder would have given more for the property; but, believing his effort useless as against the judgment creditor, he quit before reaching the amount he had in mind. It is agreed that the property was then worth from $8,000 to $10,000. ...
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