Chilton v. Brooks

Miller, J., delivered the opinion of the Court. One of the appeals in this case is from an order ratifying a sale made by the assignees of a mortgage executed under Art. 64, of the Code. The property consisted of a handsome three story brick dwelling house, built at a cost of about $1000, and located on Madison avenue in Baltimore County just outside the limits of Baltimore City. There was an annual ground rent of $200 on the premises, and the mortgage under which the leasehold interest was sold was for $3500.

In accordance with the advertisement the sale took place on the premises on Monday the 12th day of March, 1888, shortly after four o’clock in the afternoon. ⁵⁸⁶ The parties present were the mortgagor, the auctioneer, and the assignees with their attorney who were also the owners of the ground rent. There was but a single bid of $2500 which was made in behalf of the assignees, and after being cried for about two minutes, the house was struck off to them at that price. It is shown by a preponderance of proof that this sum is less by at least $1000, than the market value of the property at the time. One of the exceptions to its ratification is to the effect that the day, on which the sale was made, was one of the coldest and most disagreeable of the season, in consequence of which there was no attendance of bidders- and no competition.

This allegation as to the state of the weather on that day is fully sustained by the proof. It was one of the days of the notorious March “blizzard” when the cold was so exceptionally severe in this latitude as to make it dangerous for persons to-be exposed to it. The parties immediately interested who attended could not conduct the sale out of doors. They had to enter the house where there was no fire,, and we think it plain that the business was hurried through in the briefest possible time on account of the intense cold.

We think no disinterested and prudent trustee, mindful of his duty to protect the interests of all parties concerned, would have allowed the sale to take place on such a day and under such circumstances. The house, though actually just outside the then city limits, was practically a city house on a fashionable-avenue leading to the Park, was a valuable and handsome one recently built, and we can conceive of no good reason why there was no competition for it, except that the extreme inclemency of the weather prevented bidders from attending the sale. This condition of the weather, in connection'with the fact that, the house was bid in by the mortgagees at a $1000 or ⁵⁸⁷ more below its market value, affords sufficient ground for setting the s.ale aside, no matter how derelict the mortgagor may have been in complying with the conditions of'the mortgage. "While it is well settled that mere inadequacy of price by itself, is not sufficient to set aside a sale, unless it be so gross and inordinate as to indicate want of reasonable judgment and discretion, or misconduct or fraud in the trustee, or some mistake or unfairness for which the purchaser is responsible, yet where it appears there is