Kennedy v. Stonehouse

100 N.W. 258, 13 N.D. 232, 1904 N.D. LEXIS 35
CourtNorth Dakota Supreme Court
DecidedJune 20, 1904
StatusPublished
Cited by8 cases

This text of 100 N.W. 258 (Kennedy v. Stonehouse) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kennedy v. Stonehouse, 100 N.W. 258, 13 N.D. 232, 1904 N.D. LEXIS 35 (N.D. 1904).

Opinion

Young, C. J.

The plaintiff sues to recover damages for the breach of a written contract to sell and convey 160 acres of land situated in Grand Forks county. The contract in question was executed by the defendant as agent of the owner, and in her name, but wholly without her authority. The trial was to the court without a jury. Plaintiff was awarded damages in the sum of $3,142.29. The defendant has appealed from the judgment, and demands a review of the entire case in this court.

The defendant admits that he had no authority from the owner to execute the contract in question, and “that at some time he was liable to the plaintiff for this assumption of authority,” but claims that whatever cause of action arose in plaintiff’s favor for the injury sustained by reason of his assumption of authority is barred by the statute of limitations. The applicability, as well as the sufficiency, of this defense depends entirely upon the character of the defendant’s liability and the nature of the plaintiff’s cause of action. The questions of fact which are in issue are fully covered by the findings of fact, and the latter are, in our opinion, amply sustained by the evidence. So far as material to a consideration of the questions of law involved, they may be stated as follows: On April 20, 1891, and until the 4th day of March, 1902, one Eugenia A. Tinker, a resident of the state of Connecticut, was the owner of the land in question. On the first-named date, to wit, April 20, 1901, the defendant, Anthony Stonehouse, a resident of Larimore, in the county of Grand Forks, executed and delivered to the plaintiff [238]*238a written .contract for the sale of said land, in which Eugenia A. Tinker was named as party of the first part, whereby, in consideration of the plaintiff’s agreement to deliver to her or her agent 1,900 bushels of wheat at one of the elevators at Niagara, in said county, she agreed to sell andi convey said land by a deed of warranty to this plaintiff. By the terms of the contract, payment was to be made by delivering one-half of the wheat grown each year until the entire amount was delivered. The contract was signed by the plaintiff, and the defendant signed the same for his alleged principal in the following form: “Eugenia A. Tinker, per Anthony Stonehouse, Agent.” The .plaintiff immediately entered into possession under said contract, and in all things fully complied with its terms, delivering the half of the crop each year to the defendant, as agent for the owner, until the fall of 1901, when the delivery was completed, and plaintiff was entitled to a deed. The trial court expressly found that the defendant, “in signing the said .contract and doing the acts aforesaid, assumed to act as an agent for the said Eugenia A. Tinker without authority therefor, * * * * and, at the time he so signed the same, well knew that he had no authority to sign the same, and, further, that at the time he so signed the said contract he did not believe, in good faith, that he had authority to sign the said contract, and attach thereto the name of Eugenia A. Tinker, by himself as agent, and that defendant did not disclose to plaintiff until July 1, 1901, that the defendant had signed said contract without authority, and that up to the last-named date, at divers times from year to year, said defendant continued to and did represent to and assure plaintiff that he was and had been authorized by the said Eugenia A. Tinker to make the signature aforesaid to the said contract, and to further represent to and assure plaintiff during all that period that, if said plaintiff would remain in possession of said land and comply with the conditions of said contract, he, said defendant, Stonehouse, would see that plaintiff would receive a deed under the contract, and up to July 1, 1901, plaintiff did not know that these assurances and representations of defendant were untrue, nor did plaintiff know that said defendant .had signed said contract without authority, and plaintiff believed in said assurances of said defendant at all times, and, on the faith of them, continued to remain in possession of said lands, and go on complying with the terms of said contract, and completing payments thereon, to secure a deed of the said lands, until the fall of 1901.” In July, 1901, Eugenia A. Tinker instituted [239]*239an action against this plaintiff for the possession of the land upon the ground that Stonehouse had no authority to make the contract in question, and that she had not ratified the same. The defendant, Stonehouse, pursuant to notice from plaintiff, assisted in the defense of that action. Judgment was entered therein on March 4, 1902, requiring the plaintiff to surrender possession to Eugenia A. Tinker. Upon these facts the learned trial judge held that the defendant was liable to the plaintiff upon the contract and for its breach to the same extent that the owner would have been, had she been bound by it; that is, for the value of the land at the time plaintiff was ejected, and, in addition, for the costs which plaintiff incurred in defending the Tinker suit, including a reasonable attorney’s fee. We are entirely satisfied with the correctness of this conclusion.

There has been much diversity of judicial opinion as to the character of the liability of one who, without authority, executes a contract in the name of an alleged principal. Three forms of remedy have been recognized by the courts as available to the other party to the contract, each, being based upon a distinction in the nature of the liability: (1) An action against the agent upon the contract, as principal in the contract; (2) an action against the agent for damages for the breach of his warranty of authority to execute the contract; and (3) an action for deceit, where the agent has acted in bad faith in his assumption of authority. As we have seen, the trial court placed its judgment upon the first ground. It is conceded that the complaint is broad enough in its allegations to authorize a recovery upon any one of the three grounds, if they are available; and it will be conceded that, if the present action is maintainable upon the first ground (that is, upon the contract against the defendant as principal therein), the statute of limitations is not applicable, for there was no breach of the contract until the owner of the land, the alleged principal in the contract, refused to execute the deed, when, according to the terms of the contract, it was due, in the fall of 1901. In that event the judgment is not assailable. Counsel for defendant contends1 (1) that, under the great weight of modern authority, the remedy by an action upon the contract is no longer available; and (2) that the party injured is limited to one of the other two remedies — that is, to an action for damages for the breach of warranty of authority, or to an action for deceit — and that as to either the cause of action arose when the defendant signed [240]*240and delivered the contract without authority on April 20, 1891, and is therefore barred by the statute of limitations.

Inasmuch as we are agreed that the statutes to which we shall hereafter refer establish the plaintiff’s right to recover upon the contract, and sustain the conclusions of the trial court, it will not be necessary to consider whether he also had, as concurrent remedies, the right to sue for breach of warranty of authority or for deceit, and, if he had when his cause of action therefor arose.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Kurtin v. Elieff
California Court of Appeal, 2013
Hill v. Capps
160 So. 2d 186 (Mississippi Supreme Court, 1964)
Nichols Grain & Milling Co. v. Jersey Farm Dairy Co.
24 P.2d 925 (California Court of Appeal, 1933)
Kelly v. Guess
127 So. 274 (Mississippi Supreme Court, 1930)
Borton v. Barnes
292 P. 307 (California Court of Appeal, 1920)
Sorenson v. Kribs
161 P. 405 (Oregon Supreme Court, 1916)
Boschker v. Van Beek
122 N.W. 338 (North Dakota Supreme Court, 1909)

Cite This Page — Counsel Stack

Bluebook (online)
100 N.W. 258, 13 N.D. 232, 1904 N.D. LEXIS 35, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kennedy-v-stonehouse-nd-1904.