Case law update: New Memorandum Decision from the Supreme Court of Appeals of West Virginia
The article this month focuses on a new Memorandum Decision from the Supreme Court of Appeals of West Virginia. In its September 15, 2023, decision in Anderson v. Wright, the Supreme Court of Appeals dealt with an appeal from the Circuit Court of Wood County, West Virginia, pertaining to the judicial sale of real property and the distribution of the net proceeds to the parties.
In the case, the parties each owned a 1/3rd undivided interest in the real property. Ultimately, a dispute arose over the real property’s maintenance and upkeep and one of the parties filed a complaint asking the circuit court for a partition of the real property. After a bench trial, the court found that the property was not susceptible to a partition in kind and that none of the parties were willing to purchase the property through allotment. Thus, the circuit court ordered the property sold with the net proceeds distributed to the parties. A special commissioner was appointed and listed the real property with a realtor. The realtor subsequently received a written bid of $70,000 which was ultimately accepted as the highest bid.
At the confirmation hearing, however, the special commissioner informed the court that the $70,000 was reasonable but that the special commissioner received a report shortly after accepting the bid that a higher offer was going to be made. The circuit court heard testimony from two witnesses which revealed that the petitioner in this matter, one of the parties with an undivided interest in the property, made a late bid of $72,500. The circuit court held against the petitioner, finding that petitioner never made a written offer and that the sale for $70,000 that was accepted was commercially reasonable. Thus, petitioner appealed to the Supreme Court of Appeals seeking to overturn the decision of the circuit court and seeking to have their upset bid accepted as the highest offer.
The Supreme Court of Appeals upheld the circuit court’s decision. It based its ruling upon the fact that the lower court had discretion to confirm the sale of the real property for $70,000 and that its decision to do so was not plainly wrong. Thus, the Supreme Court of Appeals has upheld that the decision whether to honor an upset bid, like the one in the instant matter, clearly lies within the sound discretion of the circuit court and will not be disturbed unless the decision was plainly wrong.
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