Arkadelphia Milling Co. v. Green

219 S.W. 319, 142 Ark. 565, 1920 Ark. LEXIS 78
CourtSupreme Court of Arkansas
DecidedMarch 8, 1920
StatusPublished
Cited by5 cases

This text of 219 S.W. 319 (Arkadelphia Milling Co. v. Green) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arkadelphia Milling Co. v. Green, 219 S.W. 319, 142 Ark. 565, 1920 Ark. LEXIS 78 (Ark. 1920).

Opinion

Humphreys, J.

Appellee instituted suit against appellant and W. W. Brown in the Clark Circuit Court, to recover $269.83, with interest at six per cent, per annum from August 23,1917, on account of goods and merchandise sold and delivered to them.

~W. W. Brown filed a separate answer, admitting appellee delivered the goods and merchandise to him, but alleging the sale and delivery was under an agreement with appellant to pay for them.

Appellant filed a separate answer, denying the sale and delivery of any goods or merchandise to it or to W. W. Brown for it on the dates alleged, and, by way of further defense, pleaded the statute of frauds as exempting it from liability on the debt of W. W. Brown for goods and merchandise delivered to him by appellee. Included in the answer was a cross-bill, alleging that appellant sold and delivered to appellee on August 1, 1917, four barrels of flour for $56.25, for which he prayed judgment, with six per cent, per annum from said date.

The cause was submitted to a jury upon the pleadings, evidence and instructions of the court, upon which a verdict was returned and judgment rendered for $213.58. Under proper proceedings, appellant has prosecuted an appeal from the judgment, and appellee a cross-appeal from the refusal of the court to allow interest on the amount of the judgment from the date of the last item of merchandise furnished.

A summary of the facts is as follows: Appellee, a merchant at Womble, had for many years prior to May, 1917, sold W. W. Brown, a stave mill operator, fifteen miles out from Womble, supplies on credit. Under contract with Brown, appellant was entitled to the output of the mill. Brown was allowed a checking account, and paid his labor and other mill expenses by drafts on appellant. On April 16, 1917, appellee wrote to appellant that Brown was behind with him, and, unless he could be assured of his money, he could not let Brown have any more goods. Shortly thereafter, appellant changed his system of doing business with Brown. It agreed to pay $2.50 per thousand for producing the bolts in the woods, the cost of hauling them to the mill, and' to advance $5 a thousand on manufactured staves stacked on the mill yard. J. A. Carr, as agent of appellant, was sent to Brown’s mill semi-monthly for the purpose of checking up the bolts, staves and labor incurred in making them, and for the purpose of paying them in the following manner: After ascertaining the status of Brown’s account in the production of the staves, he issued checks against appellant to settle- the labor accounts, and to Brown, or to others by Brown’s direction, for any balance that might be due on the estimate of $2.50 per thousand for bolts, and $5 per thousand for staves. At the same time, Carr visited Golden’s mill, some fifteen or twenty miles distant in an adjoining county, for the same purpose. Appellant had a contract for the output of that mill also.

Appellee testified that when J. A. Carr first came to Womble, he assured him that Brown’s account was good; that on the second trip he accompanied Brown to the store, checked over the account and paid it himself by check or draft on appellant; that Brown then asked if he could continue to get goods. He answered “not” unless he could be assured of his money every thirty days; that Brown said, “What about that, Mr. Carr?” That Carr replied, “You (referring to appellee) let him have the goods, and I will be here once a month and pay you; ’ ’ that Carr also said he was representing appellant; that Carr made two settlements with him subsequent to that time;.that on the first settlement, he received a check of date June 12, 1917, for $300, drawn on the Citizens National Bank of Womble, payable to W. W. Brown, signed “W. W. Brown, by J. A. Carr,” and on the second settlement received a check, of date July 17th, for $200, payable to appellee at the same bank, and signed in the same manner as the first. The checks were filled out on blanks used by appellant in payment of bolts and staves, bearing appellant’s business and place of business, and containing a direction to the bank to charge the amount to the stave department of appellant. Appellee testified further that the goods were charged to W. W. Brown on the books, being carried on the old account as a matter of convenience; that he sued Brown jointly with appellant because he was mixed up with the matter, and not because he looked to Brown for the account; that the goods were sold to Brown on appellant’s credit; that on August 13, 1917, he wrote to appellant that it would inconvenience him to carry the account longer, and urged that he send Carr over by the 15th to check up Brown, but received no reply to the letterthat Carr enlisted in the army, and Patterson, appellant’s representative, ■came in August and refused to pay the account, but bought goods from appellee to the amount of $118 to be delivered to Brown’s mill, and paid for them by check drawn on appellant.

J. A. Carr testified that he did not promise to pay for goods furnished Brown nor pledge appellant’s credit therefor, but that he told Green if Brown had anything coming, after the labor was paid out of the $5 per thousand to be advanced, he would be glad to give Green a check for it, if requested to do so by Brown.

E. Nowlin, manager of the stave department of appellant, testified that J. A. Carr had no authority to pledge appellant’s credit for goods to be delivered to Brown.

Appellant insists that the court erred in refusing to give its requested peremptory instruction, for the reason that the undisputed evidence showed, first, that J. A. Carr had no authority to pledge appellant’s credit for the delivery of goods to Brown; and, second, that the undisputed evidence showed that the agreement, if any, between Carr and appellee, was a collateral and not an original undertaking, and, therefore, void, if made, by virtue of the statute of frauds, which was specially pleaded.

(1) A person dealing with a special agent must do so at his peril, and, if the special agent was without authority, the principal cannot be held. Not so, however, in dealing with a general agent. A person dealing with a general agent can hold the principal if the acts of the agent are within the general scope of the particular kind of business intrusted to him. Liddell v. Sahline, 55 Ark. 627. J. A. Carr’s employment was not a special one and confined to a single transaction, but was a general employment to transact a particular kind of business for appellant. He was, therefore, a general agent under the rule announced in the case last cited. Again, he must be held as a general agent of appellant in his dealings with Green for the reason that he was appellant’s admitted agent, and, being an admitted agent, Green had a right, without notice to the contrary, to treat with him as a general agent and within the apparent scope of his authority. It was said in the case of Three States Lumber Co. v. Moore, 132 Ark. 371, that: “One dealing with an admitted agent has the right to presume, in the absence of notice to the contrary, that he is a general agent clothed with authority coextensive with its apparent scope. ’ ’

The evidence revealed the fact that J. A.

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Bluebook (online)
219 S.W. 319, 142 Ark. 565, 1920 Ark. LEXIS 78, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arkadelphia-milling-co-v-green-ark-1920.