City of Springfield v. Koch

72 S.W.2d 191, 228 Mo. App. 511, 1934 Mo. App. LEXIS 66
CourtMissouri Court of Appeals
DecidedApril 2, 1934
StatusPublished
Cited by10 cases

This text of 72 S.W.2d 191 (City of Springfield v. Koch) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Springfield v. Koch, 72 S.W.2d 191, 228 Mo. App. 511, 1934 Mo. App. LEXIS 66 (Mo. Ct. App. 1934).

Opinion

*514 ALLEN, P. J.

The petition in this case is in seven counts, each of which is based upon a contractor’s bond for the faithful performance of the several contracts of defendant, Edgar V. Koch, contractor with the city of -Springfield, for the construction of certain street improvement, therein stated.

The appellant, V. E. Koch, purports to be the surety on the bonds of Edgar Koch, his codefendant, which bonds are the subject-matter of 'this action.

The relator, Harry G. Horton, is the materialman to the use of whom the suit is brought upon his claim, for crushed stone, furnished to and used by Edgar, in the construction of said improvements.

■ The aggregate of the claims of respondent, for which judgment was had, is $1660.59.

The only issue involved in the consideration of this case is the question of the liability, if any, of appellant, Victor E. Koch, whose name appears as surety in the seven bonds in suit. Touching that issue the facts in evidence -are as follows:

Edgar V. Koch, the contractor and principal in each of the bonds and Victor E. Koch, whose name appears on each of them as surety, are brothers.

Victor, who had from 1907 been doing general contracting, street paving, sewer and sidewalk construction, commencing in 1911 and continuing to the summer of 1929 took contracts for such work in the city of Springfield. His brother, Edgar, for a. part of that time lived in Springfield, and during much of the time from 1911 to 1929 represented his brother, Victor, in connection’with his bids and contracts, for street improvement, in the city of Springfield, often taking *515 contracts for such in his own name, as principal, with Victor as surety on the bond therefor. The evidence shows and Victor admits, that Edgar .had not only submitted the bids, took and signed such contracts and bonds as contractor, but also, with his consent, signed Victor’s name to the bonds, as surety, thereafter assigning the tax bills to Victor and that he, Victor, in such cases paid all claims for labor and material. Some forty-seven or forty-eight of such contracts and bonds, over a space of five or six years,- next before the execution of the contracts and bonds in this ease, and so signed, were in evidence and admitted by Victor to have been his in reality.

The contracts taken and bonds executed in the seven transactions mentioned in respondent’s petition in. this cause, were taken and executed in the same form and ostensibly by the same persons as the previous forty-seven or forty-eight transactions in evidence. The execution of the bonds sued on in this case occurred from about July 8, 1929, to December 18, 1930. Some time previous to execution of the bonds in suit, the appellant had some sharp words with Mr. Culler, who was then city engineer, after which all the contracts of the appellant with the city of Springfield, were taken in the name of his brother, Edgar, with appellant signing as bondsman. This being done for the reason that the city council refused to award him (appellant) any further contracts. However, the evidence discloses that in such eases the name of appellant on the bonds was generally signed by his brother, Edgar, but the tax bills were by him assigned to appellant,, who received the money and paid the bills incurred in the completion, of the contracts.

The evidence discloses that about the month of July, 1929, and. continuing to December, 1930, the defendant, Edgar, with appellant, again appearing as surety, took the seven contracts secured by the-seven bonds in issue. That no notice or information of appellant’s: objection, was given to or received by the council or the respondent,, until after the execution of the bonds in suit and the completion of the work done by Edgar, in compliance therewith.

Appellant testified that about the- middle of 1930 he told Mr. Horton, the respondent, that Edgar was for himself but did not tell him that he was not authorized to sign his (Victor’s) name as surety, on any bonds, nor did appellant testify that he ever told any officer of the city at any tim.e that Edgar.was not authorized to sign his (appellant’s) name to any of the other bonds in evidence. Edgar, however, testified that-he signed appellant’s name as surety on the bonds in suit, as he had been accustomed to do, and that appellant did not attempt to revoke his authority to sign his name as surety until January, 1931, after all the materials for the jobs-mentioned in plaintiff’s petition had been purchased and used. That appellant always paid the claims for labor and materials on all other jobs con *516 tracted lor, and which were secured by bonds signed exactly the same as in this suit, that is the name of Victor as surety, being signed by Edgar, who was ostensibly the contractor, when in truth Victor was the principal in the job and Edgar was his employee, on a salary, neither the city nor the materialmen having any knowledge of the true'facts in the previous jobs or the jobs in suit.

The circuit court, upon the facts as stated, found the issues in favor of the respondent, upon each of the counts in his petition, from which Victor E. Koch, the bondsman appealed.

There were no separate assignments of error.

■' The evidence shows conclusively, that Edgar V. Koch had for a number of years, with the knowledge and consent of his brother, Victor, been signing his (Victor’s) name as surety to like bonds to the city of Springfield. Appellant took no steps to prevent it nor gave any notice that it was unauthorized, therefore, Edgar’s authority to bind appellant will be presumed. [Rice v. Groffman, 56 Mo. 434 : Weaver v. Ogletree, 39 Ga. 586; Meechem on Agency (2 Ed.), secs. 262, 263.]

“ It is the general rule that the acts of a former general agent within the scope of his original authority will, notwithstanding its revocation, continue to bind the former principal to those parties to whom the agent has been thus accredited, and who deal with him in good faith in reliance upon his former authority until due notice of his revocation in the manner required by the law for the class of persons to which they belong.” [1 Meechem on Agency (2 Ed.), sec. 628.]

An agent is a competent witness to establish his own agency, or it may be implied from the conduct and acquiescence of the principal, or from the course of business between them and their actions in the business community. [Hanbelt Bros. v. Mill Co., 77 Mo. App. 672; Johnson v. Hurley, 115 Mo. 513.]

“For an agent’s authority to do a given thing to be inferred or implied from the agent’s previous conduct, and the principal’s acquiescence therein, the acts relied upon as establishing the scope of the agency by implication must be of like character, to that which gives rise to the controversy.” [Schaffer Bros. & Powell Mfg. Co. v. Williams, 52 S. W. (2d) l. c. 459.]
“Where the principal has recognized another as his agent by adopting and ratifying his acts done in that capacity, he will not be permitted to deny'the relation to the injury of third persons, who have dealt with him as suchl” [Ozel F. Summerville v. The Hannibal & St. Jos. R. R. Co., 62 Mo. l. c. 393; Bennett v. Potashnick, 214 Mo. App. l. c. 513, 257 S. W. 5, l. c. 838; Austin-Western Road Mach. Co. v.

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Bluebook (online)
72 S.W.2d 191, 228 Mo. App. 511, 1934 Mo. App. LEXIS 66, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-springfield-v-koch-moctapp-1934.