Michaels v. Agricultural Insurance

New York Court of Appeals

Michaels v. Agricultural Insurance

345 N.E.2d 341, 38 N.Y.2d 793, 381 N.Y.S.2d 869, 1975 N.Y. LEXIS 2385

DecidedDecember 22, 1975

StatusPublished

This text of 345 N.E.2d 341 (Michaels v. Agricultural Insurance) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Michaels v. Agricultural Insurance, 345 N.E.2d 341, 38 N.Y.2d 793, 381 N.Y.S.2d 869, 1975 N.Y. LEXIS 2385 (N.Y. 1975).

Pincite

Opinion

Memorandum. The order should be affirmed.

In this action for breach of a contract allegedly entered into on behalf of each of the parties by professional insurance adjusters, the burden of proof to establish that the insurance companies’ adjuster had authority to bind his principal to a settlement was on the plaintiff (Dudley v Perkins, 235 NY 448, 455; Warren v Commercial Cas. Ins. Co., 241 App Div 913; 21 Appleman, Insurance, § 12338, p 255). Such authority cannot be proved by an agent’s own statements or declarations (Hotel Atlantis v Peerless Cas. Co., 285 F2d 257, 260; Warren v Commercial Cas. Ins. Co., supra; Declarations as to Scope of Agency, Ann., 3 ALR2d 598, 603). Although the jury could have found that there was enough evidence in this case to support a finding that the two adjusters had reached an oral agreement on the terms of a settlement, there was insufficient proof of either apparent or actual authority in the companies’ adjuster to do so (Bush v Westchester Fire Ins. Co., 63 NY 531; Hotel Atlantis v Peerless Ins. Co., supra, pp 259-260; 4 Couch Insurance [2d ed], § 26:326; cf. Nichols v Jamestown Mut. Ins. Co., 271 App Div 1059).

Chief Judge Breitel and Judges Jasen, Gabrielli, Jones, Wachtler, Fuchsberg and Cooke concur.

Order affirmed, with costs, in a memorandum.

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

Memorandum. The order should be affirmed.

In this action for breach of a contract allegedly entered into on behalf of each of the parties by professional insurance adjusters, the burden of proof to establish that the insurance companies’ adjuster had authority to bind his principal to a settlement was on the plaintiff (Dudley v Perkins, 235 NY 448, 455; Warren v Commercial Cas. Ins. Co., 241 App Div 913; 21 Appleman, Insurance, § 12338, p 255). Such authority cannot be proved by an agent’s own statements or declarations (Hotel Atlantis v Peerless Cas. Co., 285 F2d 257, 260; Warren v Commercial Cas. Ins. Co., supra; Declarations as to Scope of Agency, Ann., 3 ALR2d 598, 603). Although the jury could have found that there was enough evidence in this case to support a finding that the two adjusters had reached an oral agreement on the terms of a settlement, there was insufficient proof of either apparent or actual authority in the companies’ adjuster to do so (Bush v Westchester Fire Ins. Co., 63 NY 531; Hotel Atlantis v Peerless Ins. Co., supra, pp 259-260; 4 Couch Insurance [2d ed], § 26:326; cf. Nichols v Jamestown Mut. Ins. Co., 271 App Div 1059).

Chief Judge Breitel and Judges Jasen, Gabrielli, Jones, Wachtler, Fuchsberg and Cooke concur.

Order affirmed, with costs, in a memorandum.

Cite This Page — Counsel Stack

Bluebook (online)

345 N.E.2d 341, 38 N.Y.2d 793, 381 N.Y.S.2d 869, 1975 N.Y. LEXIS 2385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michaels-v-agricultural-insurance-ny-1975.

Opinion

Related

Cite This Page — Counsel Stack