Opinion ID: 1143719
Heading Depth: 1
Heading Rank: 3

Heading: execution sale

Text: In Supreme Court No. 15460, Carmen argues for reversal of the district court's affirmance of the magistrate court's refusal to vacate the execution sale. She asserts the grossly inadequate sale price coupled with irregularities in the sale requires vacation of the sale. Carmen focuses on two alleged irregularities. First, she alleges she proceeded with the execution sale laboring under an interpretation of the partition order subsequently rejected by the courts, all to her detriment. However, Carmen's misunderstanding of her legal rights, though unfortunate, is not an irregularity in the sale itself, particularly since she was represented by counsel at all stages. The second irregularity alleged by Carmen is that a 494 acre farm tract irrigated from a single well was sold in several 160 acre parcels, all but one of which lacked an independent source of water. This, combined with the alleged grossly inadequate sale price, justifies vacation according to Carmen. In general, gross inadequacy of price coupled with irregularities in the sale warrants vacation. Gaskill v. Neal, 77 Idaho 428, 432, 293 P.2d 957, 960 (1956); The Federal Land Bank of Spokane v. Curts, 45 Idaho 414, 425, 262 P. 877, 880 (1927). Whether to set aside an execution sale lies largely within the trial court's discretion. Gaskill, 77 Idaho at 433, 293 P.2d at 960. In both Gaskill and Curts, the sheriff conducting the execution sale sold the property in parcels rather than as a unit, at the direction of persons not authorized to direct the manner and order of sale. Each court held this to be an irregularity in the sale. In the instant case, George, the execution debtor, directed the order of sale of parcels under the express statutory authority of I.C. § 11-304. In Gaskill, a house and garage lay partly on each of the two parcels sold. No similar factor exists in this case. The sheriff in Gaskill and Curts also improperly ignored the highest bid offered at the sale and instead accepted a much lower bid. This irregularity did not occur in the instant case, where the sheriff accepted only the highest bid. Real property at execution must be sold in known lots or parcels. I.C. § 11-304. The factors indicating land does not consist of known lots or parcels include whether the land is continguous, is owned and farmed as one tract, or that marks or circumstances are not available to distinguish one lot from another. Curts, 45 Idaho at 424, 262 P. at 880. In the instant case, although the land was continuous, it had been leased out and farmed in several parcels on prior occasions. Furthermore, the magistrate court found the boundaries of the parcels were established by survey markers as well as farm and county roads. The notice of sale, itself drafted by Carmen's counsel, described the land in five separate parcels and the land was sold in those same parcels. Carmen also asserts several parcels were not economically viable units, that is, units adapted for separate and distinct enjoyment, because they lacked independent water sources. However, George announced before the sale of each parcel lacking an independent water supply that arrangements would be made for the parcels to continue receiving water from the central well for a reasonable price. George had made such arrangements with lessees of portions of the very same parcels in prior years. As a result, the magistrate court found that the 160 acre parcels were farmable units and there is substantial competent evidence in the record to support that finding. In general, parcels not adapted for separate and distinct enjoyment should be sold as a unit. However, under I.C. § 11-304 if the party directing the order of sale can show in an intelligible manner the particular way in which the property can be profitably sold in parcels, the general rule will not apply and the sheriff must follow his directions. Gaskill, 77 Idaho at 432, 292 P.2d at 960. Three of the lots sold without an independent water source had no encumbrances upon them. George might reasonably have believed the sale of unencumbered property and parcels would result in the highest possible bids while minimizing the amount of property sold to satisfy Carmen's lien. Selling in parcels probably also placed individual parcels within the price range of more bidders. Greater numbers of bidders could reasonably be expected to increase bid amounts. Therefore, the sale in parcels, even if those parcels were not adapted for separate and distinct enjoyment, was a reasonable means of selling the land profitably. Hence, it was not irregular. Gaskill, 77 Idaho at 432, 293 P.2d at 960. Carmen asserts the sale brought a grossly inadequate price which, when coupled with the alleged irregularities, requires us to set aside the sale. In Gaskill, the sale brought $426.12 for $11,000 worth of property, less than four percent of the value. In Curts, the sheriff ignored a bid of $8,700 (suggesting a minimum value for the land) and accepted a $300 bid for 240 acres of land  again less than four percent of the value, conservatively assuming the land was worth at least as much as the ignored bid. (The sheriff ignored the bid because it was written and the bidder was not present at the sale. The court held the sheriff should have accepted the bid.) At the sale in issue, Frank Suchan bought 800 acres for $12,000 and assumed an outstanding mortgage of $59,000. This made the effective purchase price $71,000. While the land had been appraised at the time of the partition order at $680,000, evidence of the value at the time of sale put the value at about $300,090. Several factors could explain the low purchase price: (1) a water permit allowing irrigation of only 480 acres (though 494 acres were irrigated in fact); (2) depressed market prices for farm land; (3) rock outcroppings on the land; (4) the fact Carmen's attorney announced prior to the sale of each parcel that it was being sold subject to Carmen's continuing lien; and (5) the fact forced sales commonly produce low prices. In light of these factors relevant to the adequacy of price, and Carmen's failure to prove any irregularity in the sale, we cannot say the magistrate court abused its discretion in refusing to vacate the execution sale. Gaskill, 77 Idaho at 433, 293 P.2d at 960.