Elder v. Stuart

52 N.W. 660, 85 Iowa 690
CourtSupreme Court of Iowa
DecidedMay 27, 1892
StatusPublished
Cited by1 cases

This text of 52 N.W. 660 (Elder v. Stuart) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elder v. Stuart, 52 N.W. 660, 85 Iowa 690 (iowa 1892).

Opinion

Granger, J.

I. The appellee states the principal questions to be considered as follo.ws: “Upon suit being brought, the account of the appellants was admitted, and the amount due under the contract was made the subject of a counterclaim, and so the case was tried and went to the jury. The two principal questains raised upon the trial were: First, did Bryner make the contract as alleged in the counterclaim? second, if he did, had he actual or apparent right to do so?”

[693]*693The jury must have found that Bryner did make the contract, and the testimony warrants the conclusion. It must have also found that Bryner “had the actual or apparent right to do so.” With regard to the “apparent right” to make such a contract, the court gave the following instruction: “Ninth. In the absence of all knowledge or notice of what powers were expressly conferred by the plaintiffs upon Bryner, the firm of Charles Stuart & Son would have the right to deal with him with reference to the scope of the apparent authority with which he was invested and, held out to said firm by the plaintiffs. In dealing with Bryner, when he was claiming to act as agent of the plaintiffs, the firm of Charles Stuart & Son was bound, at its peril, to see that he had authority to bind the plaintiffs in that transaction, or that he was acting within the scope of his apparent authority; and in this connection the question is not what authority the plaintiffs intended to give Bryner, but what authority was the firm of Charles Stuart & Son justified, in dealing with him, in believing had been given. The plaintiffs would not be bound by any act not expressly authorized or necessary to cany out the powers expressly conferred, or to accomplish the purpose of the agency, unless they, by their acts and conduct, had apparently clothed him with other or greater powers, — that is, unless they had given him a scope of apparent authority beyond the powers expressly conferred, — and then the plaintiffs would only be bound in case the firm of- Charles Stuart & Son did not know of his real authority, and were justified in believing he had the authority claimed, by the acts and conduct of the plaintiffs themselves;. and the apparent authority herein required is not the authority assumed or claimed by Bryner without the knowledge or consent of the plaintiffs, but it is the authority apparently conferred upon him by the acts, declarations, and conduct of the plaintiffs themselves, or by the acts and conduct [694]*694of Bryner, which were known to and ratified by the plaintiffs.”

It is urged that there is error in giving the instruction, because there is no evidence to justify it. The instruction is set out because it indicates the facts essential to an “apparent authority,” which are important in discussing the question of evidence on the point. We think the instruction should not have been given. After a careful review of the recoi’d, we see no testimony tending to show an apparent authority, unless some statements are disconnected and given a meaning manifestly not intended. Bryner was not a general agent. He was a special agent, with authority to solicit shipments of grain to the plaintiffs for sale on commission. He possessed all the authority embraced within the ordinary and usual scope of such an employment. No word of testimony, indicates that Charles Stuart & Son believed, or had reason to believe, that Bryner possessed any greater authority. We must keep in view the business of the plaintiffs and Charles Stuart & Son. The business of the plaintiff firm was to receive and sell grain for a commission. Stuart & Son were shippers of grain to be sold on commission. The commission was the regular one fixed by the trade, and known to the parties. From 1885 to 1888 this course of business was pursued without variation, during which time Bry-ner was the agent securing the business of Charles Stuart & Son, and he in no way appeared to possess any different authority. As to the two cent rebate from 1885 to April 1, 1887, it does not appear to have been a matter of contract or obligation on the part of the plaintiffs, but the result of a “cut in rates” by the railway company, which went to the benefit of Stuart & Son, and ceased when the rebate was discontinued. In this connection it should be said that, after the interstate commerce act was in force, the rate per cent, to Peoria was made two cents less by the railway company, [695]*695so that the profits to Stuart & Son were the same as when the rebate was paid. It is not to be disputed but that, if the contract to pay this two cents per hundred pounds is to be sustained, the result is that Bryner has made a contract by which Stuart & Son shipped grain to the plaintiffs to be sold, and, after deducting the freight, the balance of the market price, with an additional amount to be paid by the plaintiffs, was to be returned to Stuart & Son; for the commissions at all times were less than two cents per hundred pounds.

At this point we should inquire what facts indicated to Stuart & Son that Bryner had such an “apparent authority.” Its exercise was in direct conflict with his entire course of procedure and the apparent authority which before that time Stuart & Son had reason to suppose he possessed. The appellee makes an attempt in argument to meet the query, but it is unsatisfactory. It is urged that, after the plaintiffs were informed that Stuart & Son were about to change their shipmeuts to others, they sent Bryner “for the purpose of inducing them to continue their relations with the plaintiffs;” and it is said, “By making this arrangement Bryner succeeded in accomplishing the very object for which he was sent into the state.” The argument indicates the appellee’s difficulty, for it assumes more than the record warrants, and without which assumption there is no force in the position. It is not to be inferred, in any way, from the record, that the plaintiffs desired a continuance of the relations, except on the basis of their being commission men, to sell for a commission, or that they sent Bryner to make a contract that would defeat the only known object for their continuing the relation. If we concede that, by the plaintiffs sending Bryner to solicit a continuance of the business, and that such act clothed him with apparent authority to make any contract that would preserve the former relation of shippers and commission merchants, as by changing the [696]*696rates of commissions or the method of doing the business, we are still without the apparent authority to do what was done in this ease; for it was not in the usual and ordinary scope of such an agency, but wholly without and subversive of it. It was a contract to pay for the privilege of doing the work for nothing, and assuming the responsibility connected therewith. If we should apply a rule for general agents, as given by Mr. Mechem in his work on Agency, section 285, that “it may not unreasonably be presumed, where nothing is indicated to the contrary, that such an agent possesses those powers which are commensurate with his undertaking, and which are usually and properly exercised by other similar agents under like circumstances,” we have not enough to clothe Bryner with the apparent authority claimed for him; for we do not think an instance is to be found where facts so prominent, and so far exceeding the usual and ordinary powers of an agency, have been construed as indicating apparent authority.

It is said, and it is likely true, that three hundred dollars of the two cents per hundred pound claim was paid after the contract was made.

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Bluebook (online)
52 N.W. 660, 85 Iowa 690, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elder-v-stuart-iowa-1892.