Court Opinion

ID: 9527507
Source: CourtListenerOpinion
Date Created: 2023-08-07 03:31:14.18178+00
Date Added: 2024-06-11T13:25:49.705638
License: Public Domain

Caporale, J.,
dissenting.
I dissent. As the majority opinion notes, involved in this case is a balancing of two sometimes conflicting policies. On the one hand, courts, when selling land, strive to obtain the best price possible. On the other hand, the rights of the high bidder and the stability of judicial sales must be protected. See, Nebraska State Bank & Trust Co. v. Wright, 213 Neb. 822, 331 N.W.2d 535 (1983); Kleeb v. Kleeb, 210 Neb. 637, 316 N.W.2d 583 (1982). In my view the trial court correctly exercised its discretion in striking that balance; consequently, I would affirm.
While the majority chooses to focus on the disparity between the highest bid at the referee’s sale and the fair value of the land, I would focus on the conduct of the heirs.
The heirs all knew of the sale, the sale was well advertised and attended, and I cannot help but infer from the evidence that the Lincoln attorney attending the sale was bidding in the interest of the heirs. Given that situation, the heirs ought to be made to live with whatever mistake they may have made by not bidding higher at the referee’s sale, not for the purpose of punishing *380them, but to preserve the integrity and stability of judicial sales and to protect the rights of the highest bidder at such sales.
The view taken by the majority, I fear, destroys the stability and integrity of judicial sales and reduces them to a process whereby one merely bids on property, rather than preserving them as a mechanism to purchase property. Bidding at future judicial sales may well be chilled because a knowledgeable potential bidder will be aware that he may wait until after the sale and then jump in to take the property if he deems the high bidder made a good buy, but let the high bid stand if hindsight persuades him the purchase was not so advantageous. Michelson v. Wagner, 170 Neb. 28, 101 N.W.2d 498 (1960); Glaser v. Weinberger, 188 Neb. 205, 196 N.W.2d 113 (1972).
To quote from Hull v. Hull, 183 Neb. 773, 777, 164 N.W.2d 455, 458 (1969): “It has been generally understood by the profession and enforced by the courts that for obvious reasons one who has been a bidder at the sale by himself or by an agent will not, as a general rule, be permitted to put in an upset bid.” My understanding of Kleeb v. Kleeb, supra, is that it was in part on that basis that this court affirmed confirmation of a judicial sale notwithstanding the existence of an almost 5-percent higher, later offer. As the Kleeb court stated:
An upset bid following a judicial sale and before a final confirmation should be considered only when it affords convincing proof that the property was sold at an inadequate price and that a just regard for the rights of all concerned and the stability of judicial sales permits its acceptance. . . . While it is true that the District Court strives to obtain the best price possible for the property it sells at public sale, it must also give consideration to the rights of the purchaser and the stability of judicial sales, particularly where the sale was free of fraud and an adequate price has been realized.
Id. at 644-45, 316 N.W.2d at 588.
I am not unmindful of the rule that judicial partition sales are not final in the absence of confirmation, Michelson v. Wagner, supra; neither do I forget, however, that ordinarily courts will confirm a sale which has been regularly held and fairly conducted. Michelson v. Wagner, supra; County of Lancaster *381v. Schwarz, 152 Neb. 15, 39 N.W.2d 921 (1949). There is no evidence the referee’s sale was not fairly conducted. I do not consider writing a bidder’s name where all can see it to be unfair; sooner or later the successful bidder’s identity must become known.
In my view the highest amount bid at the referee’s sale was fair and reasonable in view of the circumstances of this case, irrespective of the fact that it is significantly less than the value of the land.
Grant, J., joins in this dissent.