Faber-Musser Co. v. William E. Dee Clay Manufacturing Co.

126 N.E. 186, 291 Ill. 240
CourtIllinois Supreme Court
DecidedFebruary 18, 1920
DocketNo. 12505
StatusPublished
Cited by35 cases

This text of 126 N.E. 186 (Faber-Musser Co. v. William E. Dee Clay Manufacturing Co.) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Faber-Musser Co. v. William E. Dee Clay Manufacturing Co., 126 N.E. 186, 291 Ill. 240 (Ill. 1920).

Opinion

Mr. Justice Carter

delivered the opinion of the court:

Appellant, the Eaber-Musser Company, a corporation’ engaged in business at Peoria, Illinois, brought suit in assumpsit in the circuit court of Sangamon county against appellee, the William E. Dee Clay Mánuíacturing Company, an Illinois corporation, whose factory is located at Mecca, Indiana, to recover $20,000 damages for failure to deliver fire brick contracted for by appellant from appellee through appellee’s agent, Matthew M. Dee. The general issue and special pleas were filed by appellee denying the execution of ■ the alleged contract. At the close of appellant’s case the court gave a peremptory instruction directing a verdict for appellee. Judgment was entered on the verdict, and on appeal to the Appellate Court for the Third District this judgment was affirmed. • A certificate of importance was granted by the Appellate Court and the cause is brought here by appeal.

The evidence shows that appellant is a dealer in building materials and that appellee is a manufacturer of fire brick and clay products. Appellee maintains an office at Springfield, Illinois, (the only office it has in this State,) which is in charge of its agent, Matthew M. Dee. The contract sued on consists of an order, and letter attached thereto, bearing date May 14, 1917, addressed to appellee and signed by appellant. . Opposite the signature of appellant to the order appears: “Accepted — Wm. E. Dee Clay Mfg. Co., per Matthew M. Dee.” The evidence shows that Matthew M. Dee was, and had been for several years, in charge of the office of appellee at Springfield. As we understand the record, the evidence shows that the signs on this office indicated that it was the sales office of appellee. . Appellant offered in evidence Exhibit 3, and appellee objected to its' admission on the ground that the printed letter-head carried an assumption of agency that had not been proven. The court sustained the objection and refused to admit the exhibit, which is as follows:

“WM. E. DEE CLAY MFG. CO.
Manufacturers
Fire Brick, Fire Clay, Cupola Block, Furnace Tile and Shapes a Specialty 30 Myers Building Springfield, Ill.
(Western Sales Office)
“Faber-Musser Co., Peoria, Ill.: Apnl IP> lpl7‘
“Gentlemen — Replying to your letter of the 18th inst., we are pleased to quote you prices on our fire-brick, delivered to Peoria, Ill., in car-load lots, as follows:
Dee Crown fire brick.'.............................$33-35 per M.
Oak Hill Special.................................. 30.35 per M.
Large wire cut................................... 27.35 Per M.
Bulk fire clay.................................... 5-35 per ton
“Respectfully yours,
Wm. E. Dee Clay Meg. Co.
Per Matthew M. Dee.”

The evidence also tends to show that the Springfield agent, of appellee had frequently solicited orders from appellant but that prior to May 14, 1917, he had been unable to obtain any orders; that on April 18, 1917, the appellant wrote a letter to William E. Dee at Springfield asking him to quote prices on fire brick; that Matthew M. Dee, the agent then in charge of the Springfield office, complied with the request and quoted prices by a letter (heretofore referred to as Exhibit 3) written on stationery bearing the printed letter-head above set forth, designating the Springfield office as the western sales office; that on May 14, 1917, in response to a telephone call from appellant, Matthew M. Dee went to Peoria and the order in question was then prepared in duplicate; that on the duplicate copy retained by appellant appear the words: “Accepted — Wm. E. Dee Clay Mfg. Co., per Matthew M. Dee.” The agent of appellant who made this arrangement with Matthew M. Dee testified that the contract was made in duplicate and • both copies signed by Matthew M. Dee, and there is no testimony in the record contradicting this testimony of appellant’s agent except a statement made by counsel for appellee upon the trial that the contract was not signed in duplicate and that the copy retained by appellee’s agent was not signed by him as accepted. May 16, 1917, appellee, by letter from its principal office in Indiana, refused to accept the order, stating, in substance, that it was then four weeks . behind in its orders and that under the present conditions of car shortage it could not comply with the conditions named in the order. Further correspondence was had between the parties, in which reference was made to the alleged contract as an “order” by each of the parties. In none of this correspondence was there any suggestion on the part of appellee that appellee’s agent, Matthew M. Dee, did not have authority to take and accept such an order for appellee.

The questions presented here for review are, whether or not the evidence admitted by the court, together with all the reasonable inferences that may be drawn therefrom, ' tends to establish the case stated by appellant in its decla- ' ration; whether or not the refusal by the court to admit Exhibit 3 was reversible error; and whether or not, on the state of the record here presented, the trial court was justified in giving the peremptory instruction directing a verdict for appellee.

Appellant argues that appellee held Matthew M. Dee out to the world as its agent and that as such agent he was authorized to make contracts such as the one sued on, and that, furthermore, appellee is now estopped by its acts from repudiating the acts of its agent because it has ratified them. The law is' well settled that a principal is bound equally by the authority which he actually gives his agent and by that which by his own acts he appears to give. (Nash v. Classen, 163 Ill. 409; Doan v. Duncan, 17 id. 272.) “Apparent authority in an agent is such authority as the principal knowingly permits the agent to assume or which he holds his agent out as possessing; such authority as he appears to have by reason of the actual authority which he has; such authority as a reasonably prudent man, using diligence and discretion, in view of the principal’s conduct would naturally suppose the agent to possess.” (2 Corpus Juris, 573.) “A general agent, unless he acts under a special and limited authority, impliedly has power to bind his principal by whatever is usual and proper to effect such a purpose as is the subject of his employment, and in the absence of known limitations third persons dealing with such a general agent have a right to act on the presumption that the scope and character of the business he is employed to transact measures the extent of his authority and to hold'the principal responsible for the agent’s acts within such authority.” (2 Corpus Juris, 581; see to the same effect, 21 R. C. L.

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Bluebook (online)
126 N.E. 186, 291 Ill. 240, Counsel Stack Legal Research, https://law.counselstack.com/opinion/faber-musser-co-v-william-e-dee-clay-manufacturing-co-ill-1920.