Foss-Schneider Brewing Co. v. McLaughlin

31 N.E. 838, 5 Ind. App. 415, 1892 Ind. App. LEXIS 249
CourtIndiana Court of Appeals
DecidedSeptember 15, 1892
DocketNo. 631
StatusPublished
Cited by6 cases

This text of 31 N.E. 838 (Foss-Schneider Brewing Co. v. McLaughlin) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Foss-Schneider Brewing Co. v. McLaughlin, 31 N.E. 838, 5 Ind. App. 415, 1892 Ind. App. LEXIS 249 (Ind. Ct. App. 1892).

Opinion

Fox, J.

This was an action brought by appellees against the appellant before a justice of the peace upon account, and the appellant being a foreign corporation, a summons was served upon one Louis Heyden who, it was claimed, was an agent of the appellant. A judgment was rendered in favor of the appellees. Prom this judgment an appeal was taken to the Vigo Superior Court, where another trial was had with a like result.

There is but one error assigned in the record, and that is, “ that the court below erred in overruling the appellant’s motion for a new trial.”

Counsel for appellant say in their brief that “ error of the court in the oral instruction, and in the admission of evidence is the ground upon which the appellant relies for the reversal of this case.” This will be taken as a waiver of all other questions presented in the record.

Briefly stated, the facts of the case, as they appear in the record, are as follows: The appellant is a corporation en-' gaged in manufacturing beer in the city of Cincinnati, to be sold in the markets of the country. The company gave to one Louis Heyden the “sole right” to control the sale of their beer in the city of Terre Haute, in the State of Indiana. In so doing they agreed to build him an ice-house in Terre Haute in which to store the beer as he received it, and also to furnish him with a wagon, horse and harness, for the purpose of delivering beer to customers. There was evidence tending to show that after the ice-house was built, the words “ Foss-Schneider Brewing Co., Louis Heyden, agent,” were conspicuously painted in large letters upon three sides of it. A delivery wagon was made in Cincinnati and was, by the appellant, sent to Heyden at Terre Haute. Upon each side of the wagon were painted the words, “ Foss-Schneider Brewing Co.” Evidence was also given tending to show that the words “ Louis Heyden, agent,” were painted upon the end and back of the seat of the wagon. Heyden took possession and had the conti’ol of both the ice-house and the [417]*417wagon, and used the same in placing beer manufactured by the appellant upon the market. While Heyden was so engaged, the appellees delivered ice to him, to be used by him in connection with said business. Heyden having failed to pay for the ice, suit was brought against the appellant upon the theory that Heyden was their ostensible agent, and as such received the ice. Evidence was also given at the trial that while Heyden was engaged in handling the beer, and was in possession of the ice-house and wagon, they inquired of him whether he was agent for the appellant, and that he said he was. The appellants, at the trial, denied that Heyden was their agent, and claimed that the beer was sold to him outright by car loads; that they did not authorize Heyden or any one else to place his name as agent upon either the house or wagon; that they did not know the words were there.

The court instructed the jury that if they believed from the evidence that the “ Brewing company ” caused a wagon to be painted with the corporate name, “ Foss-Schneider Brewing Co.” on both sides of it, and caused Heyden’s name, as agent, to be painted upon it in a conspicuous place, where it could be seen and read, and permitted Heyden to use it in the public streets of Terre Haute or elsewhere, this would “be a holding of Louis Heyden out as an agent,” and that a person acting in good faith would have a right to deal with him as such. The court further instructed the jury that if “ the brewing company authorized Heyden to erect a house for them with their money, and he having done so for the purpose of selling their beer or keeping their beer in which they should sell to him, and afterwards placed or printed in large letters upon the side of the company’s house the names “ Foss-Schneider Brewing Co., Louis Heyden, Agent,” and that fact came to the knowledge of the defendant, and nothing was done to prevent him from still allowing that sign there where the public could see it, that would [418]*418be a holding out of him as their .agent.” The court then-instructed the jury that as to whether the brewing company company caused the house and wagon to be lettered as above mentioned, or permitted the same to be done, were questions of fact to be determined by them from the evidence.

Counsel contend that the above instruction is not a correct exposition of the law. An agency will, at times, be-implied from circumstances, in order to protect the rights of innocent parties, even where no contract of agency in fact exists. The law upon this question is well stated in Mechem Agency, section '84. It is there said : It may therefore be stated as a general rule that whenever a person has held out another as his agent authorized him to act for-him in a given capacity; or has knowingly and without dissent permitted such other to act as his agent in such capacity ; or where his habits and course of dealing have been such as to reasonably warrant the presumption that such other was his agent, authorized to act in that capacity ; whether it be in a single transaction or in a series of transactions, his authority to such other to act for him in that capacity will be conclusively presumed, so far as it may be necessary to protect the rights of third persons who have relied thereon in good faith and in the exercise of reasonable prudence, and he will not be permitted to deny that such other was his agent, authorized to do the act that he assumed to do, provided that such act is within the real or apparent scope of the presumed authority.”

If it is true that at the time the ice was delivered to Hey-den, he had the sole right and was engaged in placing beer manufactured by the appellant upon the market, in Terre Haute, and that upon the house owned by appellant in which the beer was kept before being delivered to customers, he caused his name to be conspicuously painted as agent of the appellant, of which fact the appellant had or should have had knowledge, and the appellees knowing and relying upon what was thus publicly announced, and believing it to be-[419]*419true, iu good faith dealt with Heyden as the agent of the appellant, the law will protect them and not permit the appellant to deny the relation. The rule, that when under circumstances and conditions one of two persons must suffer, the one who made the circumstances and conditions possible must be held responsible, is a just and salutary one. That the appellees acted in good faith is shown by the fact that they made inquiry of Heyden while he was in possession of the horse and wagon, as to whether he was in fact agent or not. Counsel insist that the court should not have permitted this question to be answered. Ordinarily, the rule is, that the fact of agency can not be proven by the declarations of the agent in the absence of his principal. This evidence, however, under the circumstances, was properly admitted in order to show the good faith of the appellees in the premises — to show that they made proper and prudent inquiries before dealing with the person of whom the inquiry was made, and who at the time had in his possession the house and wagon, lettered, as appellees claim, as above mentioned, and was engaged in selling goods manufactured by the appellant.

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Bluebook (online)
31 N.E. 838, 5 Ind. App. 415, 1892 Ind. App. LEXIS 249, Counsel Stack Legal Research, https://law.counselstack.com/opinion/foss-schneider-brewing-co-v-mclaughlin-indctapp-1892.