Equitable Life Assurance Society of the United States v. First National Bank
South Dakota Supreme Court
602 N.W.2d 291 (1999)
After the Olsons defaulted on mortgages held by Equitable Life (plaintiff) and First National Bank (FNB) (defendant), Equitable obtained a foreclosure judgment and a sheriff's sale was scheduled; the day before the sale, FNB agreed to buy Equitable's interest and wired funds, and Equitable's attorney tried repeatedly to reach the sheriff to call off the sale, ultimately confirming the payment and requesting a halt at 11:30am, twenty-five minutes after the sheriff had already begun the sale at 11:05am. Despite this notice, the sheriff completed the sale to a third-party bidder for $1,810,000, and the circuit court upheld the sale.
Whether, in an auction held with reserve, the seller has the ultimate power of sale and may withdraw the property from sale at any time before the acceptance of a bid.