State ex rel. Spillman v. Am. State Bank of Scottsbluff, 27944.
| Citation | 239 N.W. 214,122 Neb. 42 |
| Decision Date | 24 November 1931 |
| Docket Number | No. 27944.,27944. |
| Parties | STATE EX REL. SPILLMAN, ATTY. GEN., v. AMERICAN STATE BANK OF SCOTTSBLUFF ET AL. |
| Court | Supreme Court of Nebraska |
OPINION TEXT STARTS HERE
Appeal from District Court, Scotts Bluff County; Carter, Judge.
Proceeding by the State, on the relation of O. S. Spillman, Attorney General, against the American State Bank of Scottsbluff, Nebraska, in which H. C. Peterson was appointed receiver. At a receiver's sale, the bank building was sold to one William E. Frank and another, but the court refused to confirm such sale and the property was subsequently sold to J. E. Scott, and Frank appeals.
Affirmed.
Wright & Wright, of Scottsbluff, for appellant.
I. D. Beynon, of Lincoln, and Mothersead & York, of Scottsbluff, for appellees.
Heard before ROSE, GOOD, DAY, and PAINE, JJ., and BEGLEY, District Judge.
At the public sale of the American State Bank building in Scottsbluff, Nebraska, a bid of $7,625 was made, objections made thereto by a depositor and the district court on the day fixed for confirmation directed that a resale be held then and there in open court, whereupon a new bid of $9,000 was made for the said building, which was confirmed by the court. The original bidder filed objections to setting aside the original sale made by the receiver and the refusal of the court to confirm the same and appealed to this court for review.
The American State Bank of Scottsbluff, Nebraska, became insolvent in 1928. H. C. Peterson was duly appointed receiver and A. E. Torgeson was in active charge of the bank under the receiver. On December 11, 1930, upon application of the receiver, the district court entered an order directing the receiver to sell all of the remaining assets of said bank at public auction at the front door of said bank building on January 6, 1931, and notice was given by publication in the Star-Herald for three weeks. At the sale William E. Frank and Louise Frank, of Grand Island, Nebraska, were the highest bidders for the bank building, being lot 12, block 11, original town of Scottsbluff, together with the furniture and fixtures therein, consisting of all of the furniture in the bank at that time except the Burroughs adding machine, their bid being $7,625, and the auctioneer declared said property sold to them, subject to the confirmation of the court. On January 21 the receiver, in making his report of the sale to the Franks, set out that the sale had been fairly conducted and that in his opinion no higher bid could be obtained for the property, and January 26, 1931, was set as the date of hearing upon the objections to the confirmation of said sale. C. H. Westervelt, a depositor in said bank, objected to the sale on the ground that the property did not sell for its fair value and that more money could be obtained for the same. On January 24, 1931, Beach Coleman and three others made an offer to the district court to bid $15,500 for the bank building, together with the notes and judgments owned by the bank, which latter had been sold to George A. Carpenter for the sum of $7,400, making the offer of the Coleman associates $475 in excess of the amounts bid at the sale by the Franks and Carpenter upon the two items, and said original bidders were directed by registered mail, sent under order of the district court, to appear on January 26, 1931, and show cause why the bid of the Coleman associates should not be accepted. On the date fixed all the parties were present and the Franks moved for a confirmation of the sale to them. At said time Coleman and his associates offered to raise their bid upon the two items to $16,000, but refused to bid separately upon the two items. Evidence was taken and said C. H. Westervelt, when asked about the statement made by the auctioneer at the public sale, answered:
William E. Frank, J. L. Moore, George A. Carpenter, and Herb Moore testified for the appellant that they had not heard statements made at the sale that higher bids could be made before confirmation. It is not denied that the statement was made that the bids taken at the sale were subject to the approval and confirmation by the court, and the court ordered that a resale be then and there held in court, at which time all former bidders were present in court and represented by counsel; the said Torgeson, as assistant to the receiver, reopened the sale, and J. E. Scott bid for the two items $18,201, which was an excess of $3,176 over the original bid for the building and furniture made by the Franks in the sum of...
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