Coulter v. Portland Trust Co.

2 P. 565, 20 Or. 469, 1891 Ore. LEXIS 103
CourtOregon Supreme Court
DecidedApril 14, 1891
StatusPublished
Cited by17 cases

This text of 2 P. 565 (Coulter v. Portland Trust Co.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coulter v. Portland Trust Co., 2 P. 565, 20 Or. 469, 1891 Ore. LEXIS 103 (Or. 1891).

Opinions

Strahan, C. J.

— The first question to which our attention will be directed is the construction to be given the power of attorney executed by Howard H. Palmer to his wife, E. A. Palmer, on the 17th day of March, 1887. By that instru. ment he created E. A. Palmer his true and lawful attorney in fact and empowered her to transact any business what, ever in a lawful manner in connection with or necessary to the buying, selling, transferring or mortgaging real estate in said county and state, including the signing of all necessary papers in order to transact any such business relating to real estate transactions, also including the sealing and acknowledging the execution of said papers and the delivery of the same. In this case, there is no question as to the power to buy or mortgage real estate, because the agent did not assume to act under the power created by [479]*479those words. The only question that we need to consider is the extent of the agent’s power conferred by the words “selling or transferring.” Gouldy v. Metcalf, 75 Tex. 455, 16 Am. St. Rep. 912, is a recent case on this subject. In that case the attorney was authorized by the power “ to buy, sell or exchange property $ to receive and receipt for money; to sell and dispose of property; to give bills of sale thereto or to sell and transfer real estate, and to execute deeds thereto, or to do and perform any lawful act in or about or concerning my (the principal’s) business as fully and completely as if I were personally present,” and the court held that this did not authorize the attorneys to execute an assignment of the principal’s property for the benefit of his creditors. In passing upon this question, the court said: “ The language used in the grant of general power is certainly very comprehensive, but the established rule of construction limits the authority derived by the general grant of power to the acts authorized by the terms employed in granting the special powers. When an authority is conferred upon an agent by a formal instrument, as by a power of attorney, there are two rules of construction to be carefully attended to: (1) The meaning of the general words in the instrument will be restricted by the context, and construed accordingly. (2) The authority will be construed strictly, so as to exclude the exercise of any power which is not warranted either by the actual terms used, or as a necessary means of executing the authority with effect.” (Ewell’s Evans, Ag. 204; Reese v. Medlock, 27 Tex. 120, 84 Am. Dec. 611.)

Bo iu Holbrook v. McCarthy, 61 Cal. 216, which was a sale of land under a power of attorney, the terms of which were not followed, the court held the act of the agent of no binding force upon the principal. Bo also in Morris v. Watson, 15 Minn. 212, the agent had a general power to sell and convey real estate, and assuming to aot under such power he mortgaged it, and the court held the act void. Bo in- First National Bank of Trenton, Mo. v. Gay, 63 Mo. 33, 21 Am. Rep. 430, the agent had authority to use or sign the principal’s name for [480]*480the purpose of obtaining accommodation at a bank, which of necessity, remarked the court, authorized the execution of a note, and that the law would give effect to such purpose in the usual and ordinary way; but that such power did not authorize the execution of an instrument which was not a commercial note. The only departure claimed was that the agent signed his principal’s name to a paper in all respects a promissory note, except it contained a clause for the payment of attorney’s fees if placed in an attorney’s hands for collection, and the court held that this provision destroyed its character as a promissory note, and that as against the principal it was void. This case would seem to the writer to be an extreme case, but it illustrates to what extent and how jealously courts scrutinize the acts of agents done in excess of their authority. So in Dozier v. Freeman, 47 Miss. 647, it was held that where one person deals with another knowing that the other is acting under a delegated authority, it is his own folly if he does not inform himself of the extent of the delegated authority. In such case, the principal is bound only to the extent of that authority. And the Eq. L. Assur. Soc. v. Poe, 53 Md. 28, is to the same effect. So also in Pollock v. Cohen, 32 Ohio St. 514, it was held where authority to perform a specified act in specified modes is conferred upon an agent by a regularly executed power of attorney, and general words are also used, the general words are limited by and to be construed with reference to the modes specifically named. And an able elementary writer says on this subject: “It results from the rules of interpretation applied to the construction of powers of attorney that where authority is given to perform specific acts, and general terms are also employed, the latter are limited to the particular acts authorized by the power.” (Devlin on Deeds, 359.) These principles are declared and illustrated by other cases. (North River Bank v. Aymar, 3 Hill, 262; Wanless v. McCandless, 38 Iowa, 20; Tappan v. Morseman, 18 Iowa, 499; Towle v. Leavitt, 23 N. H. 360, 55 Am. Dec. 195; Rossiter v. Rossiter, 8 Wend. 495, 24 Am. Dec. 62; Billings v. [481]*481Morrow, 7 Cal. 171, 68 Am. Dec. 235; Rountree v. Denson, 59 Wis. 522; Story on Agency, § 72; Wharton on Agency, § 227.)

The authorities cited conclusively settle in what light a power of attorney is to be viewed and how construed, and it only remains to ascertain in what manner Mrs. Palmer proceeded in the execution of the power conferred upon her. On the 22d day of November, 1888, she proceeded, assuming to act under this power of attorney, to execute to her brother W. G. Jenne a deed in the name of Howard II. Palmer and herself, whereby, for the consideration of one dollar, and “the further consideration that the said W. G. Jenne hereby assumes the responsibility of providing a suitable and comfortable home for, and properly clothing Nellie Palmer, the daughter of said Howard H. Palmer and R. A. Palmer, until the said Nellie Palmer (now nearly three years of age) shall reach the age of eighteen years,” did thereby grant, bargain, sell and convey to said W. G. Jenne forever the real estate in controversy. Was this a sale? It is said in Frink v. Roe, 70 Cal. 296, that an agent authorized to sell and convey the property of his principal cannot as against the principal convey it in trust for the payment of his own debts to one who has notice of the terms of his agency. It was said in Williamson v. Berry, 8 How. 544: “Sale is a word of precise legal import, both at law and in equity. It means at all times a contract between parties to give and pass rights of property for money which the buyer pays or promises to pay to the seller for the thing bought and sold.” And it was said in Mora, Bishop of Monterey v. Murphy, 83 Cal. 12, “a power to sell and convey is prima fade a power to sell for money, usually for cash paid,” and it is further said, “to give it any other meaning, it must be by some usage or custom in the country where the power is to to be exercised modifying the prima fade significance of the power conferred.” So in Benjamin on Sales, § 1, which defines the requisites of a sale, “that it may be defined to be the transfer of the absolute or general property in a thing, for a price in money,” and in section 2 it is observed in

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Bluebook (online)
2 P. 565, 20 Or. 469, 1891 Ore. LEXIS 103, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coulter-v-portland-trust-co-or-1891.