Case Name: HALL v. KNOTT; BOZOVSKY v. SAME
Court: County Court of New York, Chautauqua County
Jurisdiction: New York
Decision Date: 1910-11-05
Citations: 125 N.Y.S. 299
Docket Number: 
Parties: HALL v. KNOTT.
Judges: 
Reporter: West's New York Supplement
Volume: 125
Pages: 299–301

Head Matter:
HALL v. KNOTT.
BOZOVSKY v. SAME.
(Chautauqua County Court.
November 5, 1910.)
Execution (§ 410 )—Supplementary Proceedings—Sale by Receiver—Confirmation.
A sale by a receiver in supplementary proceedings may be approved or rejected in the discretion of the court, and, having been for an inadequate price, the receiver not having been informed as to the true value of the property, will, in the interest of the judgment debtor, not be confirmed.
[Ed. Note.—For other cases, see Execution, Dec. Dig. § 410.*]
Two proceedings supplementary to execution—one, on application of James R. Hall, judgment creditor in an action by him against William G. Knott; the other, on application of V. D. Bozovslcy, judgment creditor, in an action by him against said Knott. Heard on motion of the purchasers at the sale by the receiver in such proceedings to confirm the sale.
Motion denied.
Herman J. Westwood, for plaintiff.
Thos. H. Larkinj for purchasers at sale.
For other cases see same topic & § number in Dec. & Am. Digs. 1907 to date, & Rep’r Indexes

Opinion:
OTTAWAY, J.
This is a motion made by W. Rollin Morse and John Johnson for an order confirming the sale of certain grapes, and directing the delivery of the same to the said Morse & Johnson, who claim to have purchased said grapes from Louis G. Monroe, the receiver appointed in the above-entitled proceedings. The affidavits submitted for the consideration of the court show that Louis G. Monroe, by an order of the County Court dated April 16, 1910, was ap pointed receiver in supplementary proceedings of the property of William G. Knott, the judgment debtor, and by an order dated April 23, 1910, said receivership was extended to include the proceeding made upon the application of V. D. Bozovsky.
It appears that the judgment debtor is the owner of a life interest in a farm of about 47 acres situate in the town of Pomfret, Chautauqua county, N. Y. Upon said farm were vineyards. The receiver, in discharge of his duties as such, and desiring to dispose of the grapes growing on said vineyard, made certain investigation as to the crop and its value. October 6, 1910, the receiver was informed by W. Rollin Morse, one of the moving parties herein, that the grapes growing upon said vineyard were of the value of $40, and received an offer from said Morse for said amount. Upon the following day the receiver notified the judgment debtor that he had sold the grapes to Morse & Johnson for $40. At the time of making the sale to Morse & Johnson, the said Morse & Johnson paid to the said receiver the sum of $40, and took from said receiver the following receipt:
"Fredonia, N. Y., 10/6/1910.
"Received of Morse & Johnson forty and no/100 dollars in full of grapes on farm occupied by Wm. G. Knott.
"$40.00. Louis G. Monroe, Receiver."
The judgment debtor immediately notified the receiver that the grapes were of a much greater value than $40, and protested personally and by attorney against the sale. Whereupon the receiver, upon the 10th day of debtor, returned to the moving parties herein the sum of 40, paid to him for said grapes, and sent to them the following letter:
"October 10, 1910.
"Messrs. Morse & Johnson, Fredonia, N. Y.—Gentlemen: As receiver of the property of Wm. G. Knott, all of my actions are subject to confirmation by the County Court. The grapes which I sold you were from the farm of Mr. Knott, and the sale was one made in my official capacity as receiver, and it has come to my.notice that the court will not confirm this sale, and I beg to. return to you, therefore, the amount of money paid by you for these grapes.
"Yours very truly, Louis G. Monroe, Receiver."
Thereupon the receiver proceeded to harvest the grapes growing upon said vineyard and marketed the same, receiving therefor the sum of $103.37 net, after deducting all expenses of harvesting. and marketing. Upon the return of the order to show cause made herein, W. Rollin Morse and John Johnson deposited in court, to abide the event of this application, the sum of $40, being the money returned to them by the receiver herein.
The price agreed upon by the receiver and Morse seems to have been inadequate. The receiver seems to have been uninformed as to. the true value of the grapes at the time of his negotiations with Morse. In determining this application, it is the duty of the court to take into consideration the interests of the judgment debtor, whose property is being taken by an officer of the court to satisfy the claims of his creditors. Certainly the court should see that proper application is made of the property taken and full value obtained when sold. The contrast entered into by the receiver was subject to the supervi sory power of this court. The sale was not complete and binding, and the purchaser acquired no title to the property, until the sale was confirmed by the court. Matter of Atty. Gen. v. Cont. Life Ins. Co., 94 N. Y. 199.
A purchaser is presumed to know that a sale made by a receiver is made upon the condition that the sale may be approved or rejected by the court, in its discretion. Knott v. Receivers, etc., 4 N. J. Eq. 423.
In view of these considerations, the motion to confirm the sale is •denied, without costs.