Generally, I pick topics to write about given circumstances of which I’m aware or research. Other mornings, I have emails, text messages, voice mails regarding an issue — and today is one of those mornings.
Quite frankly, bid calling isn’t terribly complicated in that auctioneers basically take (accept) bids from individual bidders until there are no more higher (indeed higher, not the same) bids and then say, “Sold!” or maybe “We’re not quite there yet …”
It should be noted here that if a bid comes in ” … while the hammer is falling in acceptance of a prior bid the auctioneer may in his discretion reopen the bidding or declare the goods [property] sold under the bid on which the hammer was falling.” Further, we are in fact not suggesting the bid can be reopened just because someone is upset …
So let’s say an auctioneer accepts a bid from bidder A and at the same time doesn’t accept a bid of this same dollar amount made by Bidder B — and possibly says, “Sold!” Bidder B is upset, mad, sad, or otherwise not happy … so the auctioneer says, “Okay, since you’re (Bidder B) upset, I’ll say we have a ‘tie bid’ and …” what?
The “what?” is often to suggest to the unhappy Bidder B that he or Bidder A can bid more to break this deadlock — when actually there is no deadlock at all. In fact, this method to the extent it makes Bidder B less unhappy makes Bidder A substantially more unhappy.
As we’ve often noted, if this is indeed a deadlocked (tie) bid — which bidder has to bid more to break the tie? If neither offer to do that, what’s the resolution? Probably sell this subject lot to Bidder A which indicates there wasn’t a tie to begin with …
Auctions often have unhappy bidders … they didn’t get the property they wanted, the auction took too long, the food was less than outstanding, it rained, the pickup time was not convenient, the power went out … the list goes on. Is there an auction where everyone’s happy? Rarely, if ever.
If you are an auctioneer wanting to avoid having not even one unhappy bidder, you might want to find another career. However, if you are an auctioneer wanting to avoid litigation, there are steps you can take to minimize court time.
Since the high bidder recognized as such has equity (even before “Sold!” and certainly thereafter,) his unhappiness is actionable to the extent he is forced to pay more due to a [non-existent] tie bid or otherwise for breach of contract. The bidder who is “out” has little if any standing — other than I assume he remains unhappy.
Another way to analyze this is to look at the picture of this unhappy clown. If A is the high bidder, is this B who’s unhappy? If B is the high bidder, is this A who’s unhappy? So, all I have to be as a bidder is unhappy, and you as the auctioneer will then make the other bidder unhappy? Possibly the bidder who has equity unhappy?
Let’s sum this up this way — anyone can sue anyone, and those who are unhappy sue more often than those who are not. However, if you’re wanting to choose your plaintiff, choose one who’s just unhappy over one who has equity and is unhappy.
Mike Brandly, Auctioneer, CAI, CAS, AARE has been an auctioneer and certified appraiser for over 30 years. His company’s auctions are located at: Mike Brandly, Auctioneer, RES Auction Services and Goodwill Columbus Car Auction. He serves as Distinguished Faculty at Hondros College, Executive Director of The Ohio Auction School, an Instructor at the National Auctioneers Association’s Designation Academy and America’s Auction Academy. He is faculty at the Certified Auctioneers Institute held at Indiana University and is approved by the The Supreme Court of Ohio for attorney education.
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