103 F. 391 | U.S. Circuit Court for the District of Nevada | 1900
(after stating the facts.) The foregoing facts bring forcibly to the mind the absolute necessity upon the part of counsel, of the courts, and of their officers io use extra care and caution in the performance of their respective duües, and to see
The motion on behalf of-the National Nickel Company will be first considered. It reads as follows:
“You will please take notice that the defendant * * * will move the ■said court * * * to set aside and annul the order heretofore made by said*395 court upon the 27th day of January, 1900, confirming the report of sale made by J. l'\ Emmitt, special master, under the decree and order of sale issued in said cause, upon the judgment and decree made therein, and entered as of August 7, 1899, and for an order vacating and seiting aside said sale, upon the ground and for the reason that said confirmation by said court was improvidently made without notice to the said defendant National Nickel Company, and lor the further reason that the notice and copy of the return of sale served upon the attorney for 1he defendant for the confirmation of said sale, dated the 22d day of January, 1900, misled and deceived the attorney for the defendant the National Nickel Company, in this: that it alleged and stated that the sale made by special master of the properly of the defendant National Nickel Company, mentioned and described In said order of sale, was made by the master, in the manner therein stated, at the request of the said judgment debtor, National Nickel Company, and for the further reason that said confirmation was made contrary to the decree and order of sale issued herein, which provided that said confirmation should be had after the time for redemption of the real estate under said sale had expired, in case no redemption was had, and for the additional reason that said sale so made was improperly and insuificiently advertised, and deprived tills defendant, the National Nickel Company, of a substantial rigid to have the proceeds of the personal property sold under said decree and order of sale applied pro tanto in satisfaction of the judgment rendered in said action, and thereby reduce the amount necessary to be paid by this defendant, the National Nickel Company, to redeem its mines, mining claims, and real property from the sale so made, —and for such other and further relief as may be just.”
The most important question involved upon this motion is whether the sale of the property, it not having been made in accordance with the provisions of the statute (27 Stat. 751), is void, or only voidable. If absolutely void, as contended for by defendant, that would dispose of the motion, without reference to the other objections urged on behalf of the moving parties. If only voidable, then questions will arise whether the defendant can, under the facts as presented, maintain its motion. In Wilson v. Insurance Co., 12 C. C. A. 505, 65 Fed. 38, where, as here, the publication was not made "for at least four weeks,” the court said:
‘■As the act of congress positively prohibits such a sale unless ‘at least four weeks’ publication lias been made and is complete before the sale, this sale cannot be sustained.”
This is claimed to be directly in point, and conclusive as to the actual invalidity of the sale; hut that case is distinguished from this, in that there the objections were urged against the confirmation of the sale by the court, and that here no- sncii objection was urged until after the confirmation of the sale, although due and timely notice was given to the defendant of the time of confirmation. It is admitted that, if the defendant, had appeared and protested against the confirmation of the sale upon the ground that the notice of sale had not been given as required by the statute, the court would have refused to make the decree confirming the sale, but the plaintiff claims that, the defendant having failed to make its objections at the proper time, it is hound by the decree of confirmation; that the sale is res judicata, and cannot- now be inquired into; that the error complained of is a mere irregularity, which has been cured by the consent and acquiescence of the defendant; and that the motion comes too late. Which of these contentions is correct? A judicial sale is one made as a result of judicial proceedings by a person legally appointed by the court for that purpose. It is a sale made pendente lite. The court is the vendor,
“There are many irregularities of sufficient gravity to warrant the vacating of a writ on prompt application, but which the defendant will not be able to successfully assert after he has been guilty of tacitly ratifying the irregularity by his unwarrantable delay. * * * Wherever the irregularity is such tliat the defendant can be deemed to have waived it by his laches in not sooner complaining, or where it is of such a character that it can be cured by amending the writ, we think it cannot render the sale void, although the plaintiff may have purchased.”
In McBride v. Gwynn (D. C.) 33 Fed. 402, the court held that lapse of time prevented the moving party from setting aside a sale where the notice of sale was not given for the full period of time required by the decree. If the sale was void for that reason, no lapse of time could make it valid. A void act has no legal existence. The case, therefore, is an authority on the point that a sale thus made is not absolutely void. In that case the grounds of the motion to> vacate the sale were: (1) The report was not confirmed; (2) the master had no authority to- execute the deed until the sale was confirmed; and (3) the report of the sale was pending on exceptions to its confirmation. The court, among other things, said:
“The Irregularities of the sale were such as would undoubtedly have been accepted as sufficient to cause the sale to be set aside, and a new one ordered, upon a motion made immediately after the sale; but that was not done, and no objection to .the sale appears to have been brought forward until two years .after it was made. Under such circumstances, unless the matters complained ,of are such as make the sale void, or of such extraordinary character as to show that it was entirely unfair and unreasonable, they ought not to be allowed or entertained.”
“If it be conceded that the notice here was lacking in the requisite time required by the order and decree In one day, 1 think that the defendant, after so long a time has elapsed, is not at liberty to avail itself of it”
See, also, Freem. Jud. Sales, § 28; Goodwin v. Burns, 21 Mich. 211, 214; Lyon v. Brunson, 48 Mich. 194, 12 N. W. 32.
In Rounsaville v. Hazen, 33 Kan. 71, 76, 5 Pac. 422, it was contended on appeal that the lower court erred in holding that the notice of sale therein given was valid. It appeared from the evidence that this notice was published in a weekly newspaper on March 30th, April 20th, and April 27th of the year 1882, for the sale which was to take place and did take place on April 29th of that year, and that the notice was not published in such newspaper on April 6th or April 13th, but for some unexplained reason was omitted from the issues of the paper on those days and of those1 dates. The court said:
“Does this omission render the notice void? We think it renders the notice voidable, and for that reason the sale might have been vacated or sot aside upon proper motion before its confirmation. McCurdy v. Baker, 11 Kan. 111; Whitaker v. Beach, 12 Kan. 402. But we do- not think that the omission renders the sale void, or that it may be treated as void in any collateral proceeding- or upon any collateral attack.”
In Conley v. Redwine (Ga.) 35 S. E. 92, the sale was not properly advertised, for the reason that there were not four insertions in four consecutive weeks in the newspaper in which the notice of sale was published, as required by statute; and the question which the court considered was whether or not this defect was such as to render the sale void, or whether it was simply an irregularity. The court, after citing numerous authorities, held that it was not void, and that the statute requiring specific notice of a sale was merely directory. In Doe v. Jackson, 51 Ala. 514, 517, the validity of a sale made by a guardian of an infant was attacked upon the ground that only 8 weeks’ notice of the sale was given, instead of 40 days, required by statute. The court held that “the notice given of the sale was a mere irregularity.” In Griffith v. Harvester Co., 92 Iowa, 634, 641, 643, 61 N. W. 243, tlie question was presented whether a judgment which was obtained against a party by a defective service of notice for a period shorter than the statute required was not void. The court said:
“Tlie right of the harvester company to serve the notice to Griffith by publication, or personally outside, of the state, is not in dispute; and the case is governed by the rules which determine tlie sufficiency of a service of notice, and ilie consequence of defective service. It is well settled in this state that where there has been a service of a required notice, and the proper court has determined that the service was sufficient, the subsequent proceedings based on such service are not void, but, at most, only voidable on proper application. * * * Our opinion is that the failure to serve the notice upon Griffith twenty clear days before the first day of tlie term at which judgment was rendered did not make the judgment rendered void, and that as he failed to take advantage of ilie defect in the manner provided by statute, and has not .-■liown any reasonable excuse for his failure to do so, nor any defense to the*398 action, the judgment will not be set aside now because of tbe defective service. * * * Tbe plaintiff has no just grounds for complaint. Tbe original notice which was served upon him notified him of the commencement of the action, and also that a writ of attachment -had issued against his property. It is shown that he did not know of the sale, but it is not shown that he did not know that judgment had been rendered for the sale of the land. No diligence whatever on his part to appear in the case, to ascertain what had been done, or to make redemption from the sale, is shown. So far as we are advised, he did nothing whatever after the notice was served on him, until after the time for redemption had expired and the sheriff’s deed had been executed. As he failed to take advantage of his statutory right to object to the judgment, and has shown no excuse whatever for his failure, and has made no attempt to redeem from the sale, there is no ground upon which a court of equity can grant him relief.”
In Berlin v. Melhorn, 75 Va. 639, 641, tbe court, in discussing these questions, said:
“We think it may be safely laid down, as a general rule deducible from the authorities, that, after a judicial sale has been absolutely confirmed by the court which ordered it, it will not be set aside, except for fraud, mistake, surprise, or other cause for which equity would give like relief if the sale had been made by the parties in interest, instead of by the court.”
Fidelity Ins. & Safe-Deposit Co. v. Roanoke St. Ry. Co. (C. C.) 98 Fed. 475, 476, and authorities there cited; 2 Beach, Mod. Eq. Prac. §§ 821, 822; Jeter v. Hewitt, 22 How. 352, 362, 16 L. Ed. 345; Montgomery v. Samory, 99 U. S. 482, 489, 25 L. Ed. 375; Langyher v. Patterson, 77 Va. 470, 473; Harman v. Copenhaver, 89 Va. 836, 841, 17 S. E. 482; Robertson v. Smith, 94 Va. 250, 253, 26 S. E. 579; Frink v. Roe, 70 Cal. 297, 302, 11 Pac. 820; Leinenweber v. Brown, 24 Or. 548, 34 Pac. 475, 38 Pac. 4; Parker v. Dacres, 1 Wash. St. 190, 193, 24 Pac. 192; Gardner v. Railroad Co., 102 Ala, 635, 643, 15 South. 271; Best v. Zutavern (Neb.) 74 N. W. 81; Ror. Jud. Sales, § 100.
In Schroeder v. Young, 161 U. S. 334, 342, 345, 16 Sup. Ct. 512, 40 L. Ed. 721, there is a clear exposition of the circumstances under which a court would be required to set aside a sale, even after the time of redemption had expired, — as, for instance, where undue advantage had been taken to the prejudice of the owner, or where the owner had been lulled into a false security, or the sale of the property was collusively made for the benefit of the purchaser, etc. The court, among other things, said that:
“In this class of cases, where fraudulent conduct is imputed, to the parties conducting the sale, there is a concurrent jurisdiction of a court of equity, founded upon its general right to relieve from the consequences of fraud, accident, or mistake, which may be exercised, notwithstanding the statutory period for redemption has expired.”
No such facts appear in the present case.
In Nebraska there is a statute which provides for the more “equitable appraisement of real property under judicial sales.” Laws 1875, p. 60. It requires in all cases that the officer making the sale “shall call an inquest of two disinterested freeholders * * * and administer to them an oath impartially to appraise the interest” of the defendant in the property “at its real value in money, and such appraisement shall be signed by such officer and said freeholder respectively.” Id. § 1. That statute is as imperative in its terms as is the statute under consideration in this case. In Neligh v. Keene, 16
“A sale without an appraisement is not void. At most, it is erroneous. The court acquired jurisdiction hy the service of process, and this jurisdiction, continued until the sale was made and confirmed, and the deed executed. Errors may have been committed, but it was the duty of the party complaining- of the same to,endeavor to correct them in some of the modes provided by law. If he lias failed to do so, he cannot treat the judgment as void. * * * Where the court has jurisdiction the confirmation of the sale cures all defects and irregularities in the proceedings, and such order cannol he atta eked collaterally. [Citing cases.] This being the laiv, all the irregularities complained of, including the publication of the notice of sale, were cured by the confirmation, and the purchaser under the decree obtained a.ll ihe plaintiff’s title by the master’s deed.”
See, also, Wilcox v. Raben, 24 Neb. 368, 38 N. W. 844; Watson v. Tromble, 33 Neb. 450, 453, 50 N. W. 331; Bell v. Green, 38 Ark. 78, 80.
The provision of the statute of the United States requiring that in all cases four weeks’ notice should be given of the time of sale was intended for the benefit and protection of the judgment debtor, and created a privilege and right which the judgment debtor in any case may insist upon or waive. In the present case the right so given was waived by the failure of defendant to make any objection upon that ground prior to the confirmation of the sale.
Having arrived at the conclusion that the sale was not void, it becomes necessary to consider whether the errors in the decree and mistake in the master’s return are of such a nature as to require this court to set aside the sale. The defendant claims that by the peculiar provisions of the decree it was led to believe that the confirmation would not be made until the period for redemption had expired; but the affidavits show that defendant had due notice of the time set for the confirmation, and, if it desired to avail itself of this irregularity (if it were irregular), it ought then to have appeared and objected to the confirmation on the ground that hy the terms of the decree the time for confirmation had not yet arrived. The reasons given by defendant for not appearing to contest the confirma tion of the sale are not sufficient to warrant this court in making an order setting aside the confirmation. D. J. Noyes, the managing agent of the defendant, in his affidavit says: That in making the Order of confirmation the defendant—
•‘Was given no reasonable notice or opportunity to appear and resist' the same. * * * That upon the report of said sale to this court by said master it is positively averred under oath that 1he said sale was made by him. in the manner therein stated and particularly mentioned and set forth, in one parcel, both real and personal property, at the request of the judgment debtor, which affiant states is without foundation in point of fact, and that this statement in the master’s report, as affiant is now advised, was made by inadvertence and is erroneous, and that, said statement prevented this affiant,*400 as the agent of the defendant National Nickel Company, from appearing in said court in opposition to the confirmation of the sale upon the 27th day of January, 1900. Affiant further states that he was not present when the sale was made, and was not advised as to what action was taken by the National Nickel Company or its officers respecting the same,, and believed when the said master reported said sale under oath, and that the same was sold in the manner therein described at the request- of the judgment debtor, that the same was true, and was advised by the attorney for the defendant National Nickel Company that, if such sales were made at the request of the judgment debtor in the manner therein set forth, that a confirmation of the sale could not be successfully resisted, and that it would be useless to appear and oppose the same, and for that reason, and none other, no opposition was made to such confirmation. * * * Affiant further states that the confirmation of said sale inflicts the grossest injustice upon the defendant National Nickel Company. * * * Affiant further states that no notice of said confirmation was ever served upon any agent or officer of the defendant, * * * except the notice * * which was served upon G. IV. Baker, Esq., attorney for the defendant, a few days prior to the time set for confirmation.”
The affidavit of defendant’s attorney states that he relied upon the statement mad'e by the special master, under oath, that the sale was made, as set forth in his return—
“At the request of the judgment debtor, and therefore took no steps to resist said confirmation, believing that the said sale was made in conformity with the request and demand of the said defendant company. Affiant further states that' he consulted with D. J. Noyes, one of the agents of the defendant, in San Francisco, regarding the confirmation of said sale, and advised the said D. J. Noyes that, under the return of said master that the sale was made in the manner therein stated at the request of the defendant company, that this fact precluded any resistance to the confirmation thereof. Affiant further states that he has since been informed, within a few days past, by the attorney for the plaintiff, that there was no such request made by the defendant or any of its agents to said special master. Affiant further states that, as an attorney for the defendant National Nickel Company, he would have appeared in said court at the date set for the confirmation of said sale, and resisted the same, were it not for the fact that he believed, from the return of the special master, that the same was made in the manner stated in said return at the request of the judgment debtor, the National Nickel Company.”
There are some portions of the affidavit of the managing agent.that demand more than a passing notice. The entire affidavit was evidently carefully drawn. The omission to state certain material facts is one of its prominent features. It points out all the defects and irregularities, but is entirely silent as to the acquiescence of the defendant in relation thereto. It is bold in its statement that the “grossest injustice” has been done to the. defendant, but fails to state in what respect any injustice has been done, or in what manner the defendant has been injured. It conspicuously points out with great clearness the alleged errors of the court and the inadvertence and mistake of the special master, but is entirely silent as to the negligence of the defendant and its failure to have such errors and mistakes corrected. It makes no allusion to the certificate of sale filed December 18,1899, which was sufficient to give constructive notice to the defendant-that the sale was actually made as required by the decree of this court. For ought that appears in the affidavit, the managing agent may have had personal knowledge of the fact stated in the certificate of sale, which, if true, would of itself be at least sufficient to put him on inquiry as to the truth of the matter. This, taken in con
With reference to the motion made by the judgment creditor “for an order of said court directing the special master appointed by the said court to sell the property of the National Nickel Company, to make and file a certificate of sale of the real property of the defendant National Nickel Company, which is subject to redemption, and the amount for which such redemption may be had,” hut little need he said. Prior to the argument of this motion the plaintiff filed the following offer:
“And now comes the plaintiff in the above-entitled action, and offers to pay to Sylvester F. Field, the sum of $299.74 damages and $110.15 costs of suit in cash, and any and all other sums to said Sylvester F. Field that this court may find due upon any judgment against defendant National Nickel Company, mentioned in the petition of said Sylvester F. Field, filed in the above-entitled cause, praying that the sale made toy the special master, ,T. F. Emmitt, under the decree entered in said cause toe.set aside; and, in case said offer is not accepted, said plaintiff' will abide by and obey any order said court may make upon deciding the motions pending to set aside said sale, as to the payment of any amount found by the court to be due upon said judgment.”
Tinder this offer the only question is whether the judgment obtained in the justice’s court against the defendant is valid. It is claimed that the judgment is not a judgment against the defendant National Nickel Company, and that it is invalid because it is not shown that summons was served upon any authorized agent of the defendant. In the certified copy of the judgment rendered in the justice’s court of Humboldt county, and filed in Nye county, the title is:
“A. Feliz, Plaintiff, v. A. E. Lasher and Tho Nevada National Nickel Mining Company, Defendants.”
In the entry of the judgment the following recitals appear:
“A. E.'Lasher appears for himself, and for himself only, and not as agent of the defendant the National Nickel Company. A. IB. Lasher making no denial either for himself or the defendant of the amount claimed by the plaintiff in the original complaint, and each of said defendants having been regularly served with process, Mr. A. E. Lasher, being duly sworn, states on oath that he is in the employ of the defendant company as their agent, and that he attended to their business in the absence of his principal or its officers, Mr. D. J. Noyes and Mr. John Leighton. He further testified and admitted under oath that he had been duly served with process l'or himself and as such agent. Such being the proofs submitted upon the part of the plaintiff, and the defendants not submitting any proof to the contrary, and the*404 court having jurisdiction over the cause and the parties, it is therefore ordered: (1) That the defendants are jointly and severally indebted to said plaintiff in the sum of $299.74, as set forth in the complaint on file herein. Defendant A. E. Lasher appeared, admitting the account. Said defendant National Nickel Company, although duly served with process by service upon A. E. Lasher, its duly-qualified agent and representative, failed to make any appearance whatever. Wherefore, no answer being filed by said, defendants, and no counterclaim being submitted to the court for consideration herein, judgment is hereby entered against said defendants in favor of the plaintiff for the sum of $299.74, mentioned in the complaint, and costs of suit, taxed at $110.35.”
In the assignment of this judgment by A. Feliz to Sylvester F. Field appears the following:
“I have this day assigned, sold, transferred, and set over to Sylvester F. Field that judgment recovered by me against the National Nickel Company for $299.74 and costs of suit,” etc.
And thereafter the judgment is referred to as having been entered and docketed as follows:
“A. Feliz, Plaintiff, v. A. E. Lasher and The Nevada National Nickel Mining Company.”
I am of opinion that the irregularities relied upon by the plaintiff are not of such a character as to justify this court in holding that there was no valid judgment against the defendant. The recitals in the body of the judgment cure the clerical mistake made in the title of the cause. It .may be that the defendant might have had the judgment set aside on both of the grounds relied upon by the plaintiff; but it does affirmatively appear that Lasher was an agent of the defendant, and, in the absence of any proof that he was not such an agent as to warrant a service of summons upon him to be binding, I do not think the plaintiff is in a position to raise that point. It is apparent upon the face of the petition of the judgment creditor that he and the defendant are not at war with each other on these points, but are a unit in their desire to take advantage of the mistakes made by the plaintiff. The affidavit to the petition of the judgment creditor is made by the managing agent of the defendant, who states therein “that he is the attorney in fact of Sylvester F. Field, and attending, to his business as such in the states of California and Nevada; that the said Sylvester F. Field is a resident and citizen of the state of New York, and for that reason this verification is made by this affiant.” Affiant further states that he is personally cognizant of all the facts, and that “the statements therein contained are true, of his own knowledge.” The motion of the defendant is denied. The plaintiff having paid into court the amount due on the judgment, it is further ordered that the motion of the judgment creditor be, and the same is hereby, denied. The plaintiff is entitled to recover its costs incurred by reason of the respective motions.