BETH ANN CARNETT v. LINDA WRIGHT, MARY DELL CARNETT, ANTHONY M. CARNETT, LARRY D. CARNETT and TREVOR CROCKER

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RENDERED: May 30, 2003; 10:00 a.m. NOT TO BE PUBLISHED C ommonwealth O f K entucky C ourt O f A ppeals NO. 2002-CA-001033-MR BETH ANN CARNETT v. APPELLANT APPEAL FROM MARSHALL CIRCUIT COURT HONORABLE DENNIS R. FOUST, JUDGE CIVIL ACTION NO. 01-CI-00428 LINDA WRIGHT, MARY DELL CARNETT, ANTHONY M. CARNETT, LARRY D. CARNETT and TREVOR CROCKER APPELLEES OPINION REVERSING AND REMANDING ** ** ** ** ** BEFORE: DYCHE, HUDDLESTON and KNOPF, Judges. HUDDLESTON, Judge: This appeal arises from the sale for division of a piece of property in Marshall County, Kentucky. The parties have agreed on a statement of the facts and procedural history of the case, which we set forth below: Walter Carnett and wife, Margarett Carnett, owned a home in Marshall County, Kentucky, as tenants in common. 13, 1995. passed Beth Walter Carnett died intestate on February His to one-half Margarett Carnett, interest Carnett Linda and Wright, in his Mary Carnett, and Larry Carnett. the property five children, Carnett, Anthony Margarett Carnett died testate on August 20, 1999, devising her interest in the property to one daughter, Beth Carnett. After the death of both parents, Beth possessed a 4/5 interest in the property and each of the other four children possessed a 1/20[] interest. Beth brought this alleging that without materially defendants herein, as the failed action property for alleged could impairing to respond in the division not its and or sale, be divided value. The facts recited the complaint, were deemed admitted and a default judgment and order of sale was entered January 7, 2002. Pursuant to the order of sale, the master commissioner proceeded with a sale of the property. The property was advertised and a “[n]otice of [s]ale” 2 was placed of record. The terms of sale included a notice that “the property will be sold subject to the statutory right of redemption.” On February 8, 2002, the conducted the sale as advertised. report of sale, the property commissioner Pursuant to the was appraised at $54,300.00 and sold for $22,000.00. [Beth] moved to set aside the sale on the grounds that there is no statutory right of redemption for property sold as a result of a suit for division. By order entered March 8, 2002, the court denied [the] motion because “any objections to statements that the property would redemption be should sold have subject been to made a right of prior to the [j]udgment and hearing.” The court then entered a [o]rder [c]onfirming [s]ale on March 13, 2002. order provided redemption in that the accord sale with the was with terms of a This right the of sale. Appellee Trevor Crocker then moved to alter or amend. The court entered another order on April 24, 2002. This order amended the March 13 order by deleting the reference to the right of redemption. 3 We will first address the question of whether Beth properly presented advertisement. v. Bennett,1 her objection to the commissioner’s This case is analogous to the case of Sizemore in which a series of advertisements published regarding a judicial sale of property listed the incorrect date on which the sale was to occur. although the dissatisfied It was uncontroverted that party’s attorney knew of the inaccuracy before the sale took place, he took no action to stop the sale or alter its terms, but instead sought to have the circuit court set aside the sale after the fact. Kentucky’s highest court noted that “[n]othing that [the] plaintiff’s attorney could have said at the sale could have had any legal effect on the sale. The commissioner was in charge of the sale and he was acting as an arm of the court and his actions were not subject to the control of either or any of the parties to [the] action.”2 “Furthermore, as the trial court pointed out, [the dissatisfied parties] sought to obtain the relief they contended they were entitled to from the only source which was empowered by law to pass upon their motion to vacate the sale.”3 Having found that the sale was properly contested, 1 Ky., 408 S.W.2d 449 (1966). 2 Id. at 451. 3 Id. 4 the Court upon reaching the merits, concluded that the sale was properly set aside on the basis of the inaccurate advertisements. Like the aggrieved parties in Sizemore, Beth or her attorney were without the ability to challenge the incorrect advertisement occurrence. or commissioner’s sale until after their Therefore, the challenge to the sale was properly brought before the circuit court in an attempt to have it set aside. It is well established in Kentucky that “the [c]ommissioner of the court must conduct a sale according to the terms and conditions of the judgment. must be set aside unless it is If he does not, the sale clear that no rights interested party were prejudiced by the deviation.”4 of an Here, the order of sale reflected that the property would be sold without a right of redemption because a sale for division carries no right of redemption.5 Therefore, the commissioner’s error in advertising the property requires that the sale be set aside unless it is clear that no prejudice resulted. Beth points to the appraised value of the property as an indication of the amount it would have brought 4 Miller v. Halsey, Ky., 327 S.W.2d 943 (1959). 5 See KRS 389A.030. 5 had the advertisement not reflected a right of redemption. While it is true a that division,6 appraisal is not there no reason information, if is available, required we in as part should determining of not sale consider whether for that prejudice resulted from the commissioner’s error. There is a substantial difference between the appraised value and the amount realized at the commissioner’s sale. While it is true that property sold at judicial sale often brings less than its full retail value, we cannot ascribe all of the discrepancy to that factor alone and none to the commissioner’s error. Because it is not clear that no party was prejudiced, the sale must be set aside. The judgment confirming the sale is reversed and this case is remanded to Marshall Circuit Court for further proceedings consistent with this opinion. ALL CONCUR. BRIEF FOR APPELLANT: BRIEF FOR APPELLEES: Robert L. Prince PRINCE & BRIEN, P.S.C. Benton, Kentucky Tom Blankenship Benton, Kentucky 6 See Maynard v. Boggs, Ky. App., 735 S.W.2d 342 (1987). 6

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