Alejandro Martinez v. Arrow Truck Sales, Inc.

888 F.2d 64, 1989 U.S. App. LEXIS 16268, 1989 WL 126570
CourtCourt of Appeals for the Eighth Circuit
DecidedOctober 27, 1989
Docket87-1121
StatusPublished
Cited by2 cases

This text of 888 F.2d 64 (Alejandro Martinez v. Arrow Truck Sales, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alejandro Martinez v. Arrow Truck Sales, Inc., 888 F.2d 64, 1989 U.S. App. LEXIS 16268, 1989 WL 126570 (8th Cir. 1989).

Opinions

HEANEY, Senior Circuit Judge.

Alejandro Martinez appeals the district court’s grant of defendant Arrow Truck Sales, Inc.’s (Arrow) motion for judgment notwithstanding the verdict in Martinez’s breach of contract action against Arrow. We reverse and remand for a new trial.

BACKGROUND

Martinez, a Peruvian national, engages in the import-export business. Arrow sells used commercial trucks in the United States and abroad. In 1982, Arrow entered into an agreement with Claude Amar under which Amar became an independent salesman in Arrow’s international sales division. Amar is fluent in six languages, including Spanish. Martinez first learned of Arrow’s international truck sales business in the early 1980s from an advertisement sent to the American Consulate in Peru. In 1982, Martinez contacted Arrow in an unsuccessful attempt to purchase used trucks for a Peruvian client. Arrow sales staff referred Martinez to Amar as director of Arrow’s international sales. Amar and Martinez engaged in several business dealings independent of Arrow, including the purchase of cars at an auction and the acquisition of heavy equipment for export to South America. Additionally, the two men discussed importing Peruvian goods into the United States for resale.

In December 1983, Martinez contacted Amar at Arrow concerning the purchase of a new truck for export to Peru. Arrow deals solely in used trucks. Amar nonetheless agreed to find a new truck for Martinez. Amar stated that they could order the truck through Arrow from another company. Martinez did not discuss the transaction with any other Arrow personnel. In January and March 1984, Martinez paid Amar a total of $23,269.00 for the new truck. Martinez never received the truck, however, and was unable thereafter to locate Amar either at Arrow or at Amar's home.

Martinez filed this diversity action against Arrow and Amar for fraud, conversion, and breach of contract. Arrow cross-claimed against Amar for indemnity. The case was submitted to the jury only on the breach of contract theory against Arrow based on Amar’s apparent authority to bind Arrow. Both the fraud and breach of contract claims against Amar were submitted to the jury. The jury found against both defendants and assessed actual damages of $35,987.32 and punitive damages of $75,-000.00 against Amar only. On Arrow’s crossclaim against Amar, the jury found for Arrow in the amount of $110,987.32, the total of the actual and punitive damages.1

[66]*66Amar moved for a new trial and Arrow moved for JNOV, or in the alternative, a new trial. The district court granted both motions, finding that reasonable people could not differ in concluding that Amar had neither actual nor apparent authority to bind Arrow to a contract with Martinez.2 Martinez appealed the JNOV in favor of Arrow on June 27, 1986, and also appealed the district court’s refusal to admit certain documents and declarations of Amar on the issue of Amar’s agency. Martinez did not appeal the district court’s alternative grant of a new trial to Arrow or its grant of a new trial to Amar. Because the district court had granted Amar a new trial, this court instructed Martinez to seek certification of the order appealed from as final under Federal Rule of Civil Procedure 54(b). The district court entered a 54(b) certification as to the grant of JNOV on December 4, 1986.

Arrow moved to dismiss Martinez’s appeal, asserting that this court lacked jurisdiction because Martinez failed to file a second notice of appeal following the 54(b) certification. Martinez argued that his otherwise premature notice of appeal, filed on June 27, 1986, was validated by the subsequent 54(b) certification. This panel agreed with Martinez and allowed the appeal to proceed on the merits. Martinez v. Arrow Truck Sales, Inc., 865 F.2d 160, 162 (8th Cir.1988) (per curiam).

I.

The standard this court must apply in passing on a motion for JNOV is the same as that the district court applies. Cleverly v. Western Elec. Co., 594 F.2d 638, 641 (8th Cir.1979). Under the standard:

‘[t]he evidence, together with all reasonable inferences to be drawn therefrom, must be considered in the light most favorable to the plaintiff as the party prevailing with the jury * * * The court may not weigh the evidence or assess the credibility of witnesses. * * * The motion must be denied if, reviewing the evidence in this light, reasonable persons could differ as to the conclusions to be drawn from it. * * * a motion for JNOV may be granted only when all the evidence points one way and is susceptible of no reasonable inferences sustaining the jury’s verdict.’

Burger v. McGilley Memorial Chapels, Inc., 856 F.2d 1046, 1048-49 (8th Cir.1988) (citations omitted).

Under Missouri law, apparent authority “ ‘results from a manifestation by the supposed principal that another is his agent.’ ” Philp v. Minnesota Mut. Life Ins. Co., 657 S.W.2d 679, 682 (Mo.Ct.App.1983) (quoting Jeff-Cole Quarries, Inc. v. Bell, 454 S.W.2d 5, 13 (Mo.1970)). The manifestation must be made to a third person, and that person must believe or have reason to believe that the authority exists. Id.

Applying these standards to the record, we must respectfully disagree with the district court’s conclusion that reasonable people could not differ on the question whether Amar had the apparent authority to bind Arrow in a contract with Martinez. The facts of the transaction between Martinez and Amar raise several reasonable inferences that Amar had the apparent authority to bind Arrow in the sale of a new truck.

Arrow provided Amar with office space on its premises, a telephone, use of a telex, stationery with Arrow letterhead, business cards bearing the title of Director of International Sales of Arrow, retail and wholesale brochures for Arrow trucks, and money for postage and advertising in foreign publications. Arrow referred all its prospective foreign customers to Amar.

In the transaction in question, Martinez approached Amar regarding the purchase of a new truck in December 1983. In January 1984, Martinez gave Amar $4067.00 as a down payment on the new truck at Amar's office at Arrow. In return, Amar gave Martinez a check in the same amount [67]*67drawn on Amar’s private account entitled “Entertainment 26.” Martinez was aware that “Entertainment 26” was one of Amar’s private concerns, but testified that when he received the cheek, he assumed that the account name was the name of the bank on which the check was written, because Peruvian checks ordinarily have the name of the drawee placed at the top of the check form. This check was to serve as a receipt and guarantee for partial payment on the $27,114.00 purchase price of the truck. Amar also gave Martinez a purchase order from Midway Ford showing a $3067.00 down payment with Martinez’s name as purchaser. Arrow’s name had originally been filled in as purchaser, but a line had been drawn through it.

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Alejandro Martinez v. Arrow Truck Sales, Inc.
888 F.2d 64 (Eighth Circuit, 1989)

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888 F.2d 64, 1989 U.S. App. LEXIS 16268, 1989 WL 126570, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alejandro-martinez-v-arrow-truck-sales-inc-ca8-1989.