Hoffman v. Horton

Nature of the Case

This was an action for damages under a contract created during an auction.

Facts

The auctioneer (D) received a bid from Hoffman (P) of $177,000 for real estate owned by Horton (D1) and struck his hand with his fist, signaling the close of the auction. The auctioneer immediately reopened the auction after he was informed that he had missed a bid made prior to striking his hand. Hoffman protested but finally bought the property for $194,000.

Hoffman sued to recover the extra $17,000 he had to pay, asserting that his offer of $177,000 had been accepted when the auctioneer struck his hand. The court gave the verdict to the defendant, holding that the UCC grants an auctioneer discretion to reopen the bidding if a bid is made while his gavel is falling.

Issue

Does an auctioneer have the same discretion to reopen bidding given under the UCC if the sale is for land instead of goods?

Holding and Rule of Law

Yes. If a bid is missed or is made with the falling of the hammer, the auctioneer has the discretion to reopen bidding.

This court is willing to adopt the provisions granted to auctioneers under the UCC for the sale of goods and apply that same discretion to the sale of land by an auctioneer. If the auctioneer misses a bid or a bid is made prior to or simultaneous with closing, an auctioneer has the discretion to reopen the bidding. The auctioneer’s discretion was not abused.

Disposition

Judgment affirmed.