Marshall v. Ferguson

67 S.W. 935, 94 Mo. App. 175, 1902 Mo. App. LEXIS 549
CourtMissouri Court of Appeals
DecidedApril 15, 1902
StatusPublished
Cited by10 cases

This text of 67 S.W. 935 (Marshall v. Ferguson) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marshall v. Ferguson, 67 S.W. 935, 94 Mo. App. 175, 1902 Mo. App. LEXIS 549 (Mo. Ct. App. 1902).

Opinion

GOODE, J.

It was ruled by this court on a former appeal that the petition in the cause above entitled sufficiently stated a cause of action to let in evidence in support of its allegations over the oral objection of the defendant made at the outset of the trial; and as the defendant neither demurred nor moved for more definite averments, as he might have done, but merely urged the same objections on the second trial, we will disregard his assignment of error based on the alleged failure of the petition to state a cause of action. It would be unjust to permit the defendant to avail himself of that point now, when it was determined against him before and he lias since omitted to take measures to compel a more particular pleading. Marshall v. Ferguson, 78 Mo. App. (St. L.) 645.

The action was brought to recover a sum of money advanced by Marshall to Eerguson, to be lent to M. L. Ereeman, of Butler county, on the security of an undivided one-eighth interest in a parcel of land in Poplar Bluff, or near there, known as the “Eair Grounds.” At the inception of the trans[178]*178action, Marshall himself was the owner of that interest and he and Ereeman were considering a trade by which Marshall would exchange his said interest in the Pair Grounds for a sawmill owned by Ereeman. Ereeman needed to raise about two hundred and thirteen dollars in cash to pay off a note to the Missouri Trust Company, secured by a mortgage on a; farm of his, before the trade could be effected; and Marshall got Ferguson, who was the agent of said trust company, to make a loan to Ereeman of the sum required, he (Marshall) furnishing the money and directing Ferguson to take a deed of trust to secure it on the interest in the Fair Grounds property after it should be conveyed to Freeman. Ferguson himself held a mortgage on Freeman’s farm, junior to the trust company’s, to secure a note for three hundred and -twelve dollars and fifty cents, and when he took the deed of trust to secure the money lent by Marshall (which loan was to be and was made in Ferguson’s name and the note afterwards assigned to Marshall) he included in said deed his own note against Freeman; so that instead of the instrument- being a lien on the one-eighth interest in the Fair Grounds for only two hundred and thirteen dollars in favor of Marshall, it was also a lien for three hundred and twelve dollars in favor of Ferguson.

The issue of fact between the parties is whether Ferguson’s act in further securing his own note was done without Marshall’s knowledge or by his authority, and there was a direct conflict in the evidence bearing on that issue. Marshall testified that he neither authorized the loading of his security with Ferguson’s note, nor knew it had been done until Freeman had defaulted and he was about to foreclose, when he immediately taxed Ferguson with bad faith and notified him he must pay the loan. Ferguson swore the Fair Grounds tract was worth enough to secure both notes well and that Marshall authorized him to include his own note in the deed of trust.

[179]*179The jury settled the facts in respondent’s favor and we are only concerned with appellant’s assignments of error; chiefly the rulings on the instructions requested.

The court charged the jury that if the appellant undertook to act as the agent of the respondent in making a loan to Freeman, and was directed to secure the loan by a deed of trust on an eighth interest in the Fair Grounds, but violated his instructions by including in the deed of trust the note to himself without the respondent’s knowledge or consent, the respondent had the right to entirely ignore the deed of trust as security and look to the appellant for his money. Appellant’s counsel contended, in opposition to the theory embodied in that charge, that if respondent recovered at all he should only recover the loss sustained by -him after collecting as much of his debt as possible by enforcing the lien of the deed of trust, and submitted the following instruction setting out that view, -which the court refused to give:

“The court instructs the jury that if you believe and find from the evidence that the one-eighth interest of the land described in plaintiff’s petition was of value sufficient to secure the payment of both of the notes in the deed of trust described, then plaintiff can not recover herein, and your verdict should be for the defendant.”

When a loss results to a principal from his agent’s failure to pursue the instructions given to him, a cause of action arises in favor of the former; for a principal is entitled to have the agency executed in his own way as the party whose interest is at stake. All agencies rest on contracts, express or implied, which must be faithfully performed like other contracts. If instructions are given as to the manner of performance, the agent is presumed to accept them if not immoral or illegal; and he should faithfully observe them in the transaction of the business unless an emergency arises which justifies him in taking some other course; and a failure to observe them, without excusatory circumstances, constitutes an action[180]*180able breach of contract. But the extent of an agent’s liability for such a breach is not always the same, since it depends somewhat on the character of the deviation from the principal’s instructions. Any unjustifiable deviation; not too trifling to be judicially noticed, entitles a principal to at least nominal damages; for the law presumes damage from the breach of a contract. Usually, the measure of liability is the amount required to place the principal in as good a condition as he would have been in if the agent had followed directions; which implies that the former must be ordinarily diligent to prevent or minimize the loss resulting from the agent’s breach, and must avail himself of the means within his reach for that purpose. He may then look to the agent for reimbursement for whatever loss, proximately caused by his misconduct, reasonable precautions failed to prevent. Actions to obtain damages in such cases do not differ from actions for breaches of other contracts in respect to the measure of recovery. 2 Sedgwick on Damages (8 Ed.), secs. 813 to 815; Mechem on Agency (1889 Ed.), 474, et seq. ; 1 Am. and Eng. Ency. of Law (2 Ed.), 1062; Colt v. Owens, 90 N. Y. 368; Wright v. Bank of Metropolis, 110 N. Y. 237.

But sometimes instructions are violated in such a way as to authorize a principal to proceed directly against the agent as a debtor or for conversion. Loyalty to their trust is firmly exacted of all agents by the law, and when one uses his position for his own ends regardless of the welfare of his principal, he becomes responsible for a resultant loss; as if he unscrupulously handles money or property confided to him to benefit himself. In such cases his principal may recover the money or the value of the property. Nor is a fraudulent intention required to render an agent liable for the full value of the property used or disposed of by him in violation of his agency, although it aggravates the dereliction. Mechem on Agency, sec. 477.

In the present case, Eerguson was guilty of abusing his [181]*181agency from a dishonest motive, if the plaintiff’s testimony is true; for it is undeniable that his conduct in securing his own debt by the deed of trust taken- to secure Marshall’s, was grossly fraudulent if unauthorized by Marshall and kept from his knowledge.

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

Related

Payne v. Lomantini (In re Lomantini)
252 B.R. 469 (E.D. Missouri, 2000)
McKeehan v. Wittels
508 S.W.2d 277 (Missouri Court of Appeals, 1974)
Benton v. Roberts
134 S.E. 846 (Court of Appeals of Georgia, 1926)
Phoenix Insurance v. Seegers
68 So. 902 (Supreme Court of Alabama, 1915)
Montague Compressed Air Co. v. City of Fulton
148 S.W. 422 (Missouri Court of Appeals, 1912)
McAnaw v. Moore
147 S.W. 220 (Missouri Court of Appeals, 1912)
Wolf v. United Railways Co.
133 S.W. 1172 (Missouri Court of Appeals, 1911)
Haxton v. Gilsonite Construction Co.
114 S.W. 577 (Missouri Court of Appeals, 1908)
Van Raalte v. Epstein
99 S.W. 1077 (Supreme Court of Missouri, 1907)
Marshall v. Ferguson
74 S.W. 393 (Missouri Court of Appeals, 1903)

Cite This Page — Counsel Stack

Bluebook (online)
67 S.W. 935, 94 Mo. App. 175, 1902 Mo. App. LEXIS 549, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marshall-v-ferguson-moctapp-1902.