Higgins v. Armstrong

9 Colo. 38
CourtSupreme Court of Colorado
DecidedDecember 15, 1885
StatusPublished
Cited by28 cases

This text of 9 Colo. 38 (Higgins v. Armstrong) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Higgins v. Armstrong, 9 Colo. 38 (Colo. 1885).

Opinion

Beck, C. J.

This is an action brought by the appellee, Armstrong, against the appellants, Higgins and others, composing a partnership or association of persons styled “The American Smelting Company,” to recover damages for the alleged violation by said company of a contract to receive and pay for seventy-five thousand bushels of charcoal. The complaint alleges that the contract was entered into and executed on the part of the company by its agent, T. W. Robinson, who had authority to make and execute the same. It bears date March 24, 1879, and provides that Armstrong shall deliver to said company, at their smelting works in the city of Leadville, seventy-five thousand bushels of well-burned charcoal, at the price of seventeen cents per bushel, ten per cent, of the [40]*40contract price to be retained by the company until the completion of the contract. The coal was to be delivered in such manner that there should be not less than five hundred bushels on the grounds of the company at any time. The works were not completed until early in June, but the delivery of the coal was commenced on the 2d day of May, and continued until the 24th day of June, when Caleb B. Wick, who had been appointed the general manager of the defendants, refused to receive any more coal upon the contract, basing his refusal upon the ground that the coal being delivered was of inferior quality. The defendants, in their answer, denied all the allegations of the complaint, but their main ground of defense was that Robinson was not authorized to execute the contract for the company.

The principal legal questions involved in the case are raised by the eleventh assignment of errors, which calls in question the correctness of the third instruction given on the part of the appellee, Armstrong. In addition to this question, and connected with it, are two vital questions arising upon the record, viz.: Was this contract within the scope of Robinson’s agency? If not, was it afterwards properly ratified or adopted as the act of the company?

Robinson was a metallurgist, and had experience in the construction and operation of smelting works. His original- employment by the defendants was to erect smelting works for the company, and thereafter to remain as superintendent of the mixing and assaying of ores. Upon his arrival in Leadville, early in February, 1879, he brought two letters from H. I. Higgins, a member of the company, whose authority in the premises is conceded on both sides,— one addressed to J. J. Safely, the other to the Bank of Leadville. These letters are as follows:

Letter to J. J. Safely, dated February 10, 1879:

“Mr. Robinson leaves this morning for Leadville with [41]*41several men to put up building and machinery for smelters. Mi\ Robinson will have charge of the erection of all buildings and machinery.. We want you to be on the lookout constantly for our outside interests, and when you come across a good thing let us know. Do not buy any lots or other property without consulting us.
“John V. Ayers’ Sons.
“H. I. Higgins, Trustee.”
Letter to the Bank of Leadville:
“February 10, 1879.
“This will serve to introduce to you Mr. T. W. Robinson, who goes to Leadville in our interests to erect smelting works. Any drafts of Mr. Robinson on us for money to pay freight on machinery, etc., for material and labor in erecting works, will be paid by us, and we shall be glad to have you honor the same.
“John V. Ayers’ Sons.
“H. I. Higgins, Trustee.”

In addition to these letters the defendants Higgins, Otis and Wick testified that Robinson had no authority other than is expressed in the letters. Robinson being deceased, the parties were deprived of the benefit of his testimony upon the subject of his authority to make the contract in question. '

The testimony shows that the company had mining interests at Leadville at and before the time of the arrival of Mr. Robinson, and that up to the time of his arrival it had an agent there in the person of Mr. Safely. Safely does not appear to have remained there after this date. Robinson appears to have been the only agent representing the company at that place from about February 15th to April 15 th succeeding, when the defendant Caleb B. Wick was sent out'by the company to take general management and control of all the company’s property and business in and about Leadville. A review of the whole testimony affords ground for grave doubts whether the company’s letters to Safely and the Bank of Leadville set [42]*42forth the full scope of Robinson’s powers. His power to contract, in the name of the company, for lumber, stone, iron and other materials necessary in the erection of the works, and to hire men and pay freight, is not questioned. But defendants say this was the extent of his authority. The plaintiff’s testimony shows that Robinson looked after the company’s mining interests during the time of his sole agency, and paid men for prospecting and developing the same. Higgins mentions the fact that the company had mining interests at Leadville. The witness Sanderson says Robinson was paying for prospecting and developing mines, and building the smelting works. The plaintiff, Armstrong, says, when he first became acquainted with defendants they were erecting a smelter and engaged in a mining enterprise. He says he received money from the company through Sanderson, which was paid by Robinson, for work performed on the company’s mines.

It is substantially conceded that Robinson’s agency was not a special one, limited to the supervision of the work of erecting smelting works, nor ending with the completion of the buildings and machinery. His employment was a continuing one. On completion of the smelter he was to take charge of and superintend an important department of the work of smelting ores, which position he in fact filled for several months, as appears from the testimony of Mr. Higgins. The contract made by Robinson with the plaintiff for the delivery of the charcoal, as before stated, bears date March 24, 18Y9. This was while Robinson was the sole agent of the defendants at Lead-ville, and while he was looking after all their interests, according to the testimony referred to. It does not appear that any act of Robinson was disavowed, and it is probable that the charcoal contract would have fared the same as the mining transactions had not the price of charcoal greatly declined before the entire amount specified had been delivered. It is clear that if Robinson [43]*43looked after and expended money for the business interests of the company outside the smelting works and expenses of their erection, either by direction of the company, or by its permission or silence, knowing that he was performing such acts, the company would be properly held liable upon the contract for charcoal. The powers alleged to have been exercised by Robinson, if performed with either the express or implied knowledge of the company, cast upon it the responsibility of holding him out to the world as a general agent respecting the class of business in which the company was engaged. The rule in such case is that third persons, ignorant of the extent of the agent’s authority, will be protected.

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Bluebook (online)
9 Colo. 38, Counsel Stack Legal Research, https://law.counselstack.com/opinion/higgins-v-armstrong-colo-1885.