New Mexico-Colorado Coal & Mining Co. v. Baker

157 P. 167, 21 N.M. 531
CourtNew Mexico Supreme Court
DecidedFebruary 23, 1916
DocketNo. 1822
StatusPublished
Cited by17 cases

This text of 157 P. 167 (New Mexico-Colorado Coal & Mining Co. v. Baker) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New Mexico-Colorado Coal & Mining Co. v. Baker, 157 P. 167, 21 N.M. 531 (N.M. 1916).

Opinions

OPINION OP THE COURT.

HANNA, J.

(after stating the facts as above.) — This court has not had the advantage of a brief by the defendant in error, and will therefore consider the alleged errors presented by the plaintiff in error in the order in which they are referred to in the brief.

[1] The first argued and submitted is based upon an alleged failure of the plaintiff, to prove that the alleged agent of the defendant was, duly authorized, or had any authority to make the alleged contract sued upon.; It is contended that one dealing with an agent must ascertain whether he is an agent, and the extent of his authority; that the agent cannot establish his own authority either hy his representations or by assuming to exercise it. There is iio" cause of quarrel with the general principle thus asserted by plaintiffs in error, which finds support ;in many authorities collected in 31 Cyc. 1322 et seq., but this general principle, like many others, is not' without exceptions or qualifications, and the authority of the agent must not be confused with'what may amount to a limitation of this authority by reason of secret instructions, which were not communicated to a third party, or the customer, as in this case. This' qualification is thus announced in 31 Cyc. 1327:

“The secret or private instructions to an agent, however binding they may be as between the principal and his agent, can have, no effect on a third par.ty who deals with the agent in ignorance of the instructions, and in reliance on the apparent authority with which the principal has clothed him.”

It is seriously urged by plaintiff in error that there is no evidence at all as to any inquiry by the plaintiff as to Farrand’s agency and authority, or that defendant, .held out to the plaintiffs that Farrand was its agent; that the only evidence upon the subject is that Farrand appeared before the plaintiff, representing himself to be an agent, showing, a card so designating' him, and having in his possession certain blank forms, of contract made out in the name of the defendant company. We have made a careful examination of the record in this respect, and find that the witness Farrand testified that he was employed by the defendant company as .general sales agent in charge of the safe of their products;;that he made a trip .through Kansas in 1912 in the interest of the defendant company, and there became acquainted with Mr. Baker, who was one of the partners in the plaintiff copartnership, and entered into a contract with such plaintiff which he identified as the one executed by himself and Mr. Baker. In further support of the alleged agency, the plaintiff offered in evidence a letter from the Yankee Fuel Company, addressed to the alleged agent, Farrand, offering him employment, which letter was signed by one Horace W. Kruse as general manager of the Yankee Fuel Company, and further offered a letter from the witness Farrand addressed to the same company, accepting the offer of employment. This witness, Mr. Farrand, also testified that at the time of the exchange of correspondence, Mr- Kruse was acting as general manager of the New Mexico-Colorado Coal & Mining Company, the defendant below. Mr. Kruse on the witness stand testified that the New Mexico-. Colorado Coal & Mining Company became the selling agent for the Yankee Fuel Company on January 1, 1912, which was before the contract was executed, and that he was general manager of both companies. The offer of employment addressed to Mr. Farrand, and the acceptance, as disclosed by the correspondence referred to, were exchanged before the 1st day of January, and after the arrangement between the two companies. It would appear from the testimony of Farrand that he was paid his salary by the check of the defendant company»-, and his connection with that company is further referred to by his own testimony, to the effect that he had a certain conversation with the general manager, Mr. Kruse, who spoke to him about selling coal for the defendant company' the New Mexico-Colorado Coal & Mining Company, and that arrangements were made that he should represent himself as an agent of the defendant company. He identified a form of contract in the name of the defendant company, which was given him at the time, and one of which was the form of contract entered into with the plaintiff co-partnership, which is the subject of the present litigation. Mr. Kruse as a witness testified that Mr. Farrand prepared the form of contract in question. Another -witness, Mr. Lawrence, an officer of the defendant company, testified that he knew that Farrand was going out to sell coal for the defendant company, and that the only question between this company and Mr. Farrand was whether he should sign the contracts at the time he made a sale, or whether he should bring them back to the office for execution by other officers of the company, this witness pointing out by his testimony that it was a requirement of the defendant company that all contracts must be approved by the executive officers of the company at New York. This witness expressly admitted that the alleged agent, Farrand, was sent out by the defendant company to sell coal and take orders for that company- Mr. Lawrence admitted, however, that the rule of the company as to the execution of contracts by the executive officers had not been communicated to the customers of the company, and therefore its limitation of the authority of the agent would have no bearing upon the case, and would in no wise affect the apparent authority of the agent, which clearly appears from the evidence as a whole. As stated in 31 Cyc. 1331:

“While as between the principal and the agent the scope ■of the latter’s authority is that authority which is actually conferred upon him by. his principal, which may be limited by secret instructions and restrictions, such instructions and restrictions do not affect third persons ignorant thereof, and as between the principal and third persons the mutual rights and liabilities are governed by the apparent scope of the agent’s authority, which is that authority which the principal has held the agent out as possessing, or which he has permitted the agent to represent that he possessed, and which the principal is estopped to deny.”

See, also, Western H. & L. Co. v. Bank, 9 N. M. 1, 47 Pac. 721.

There is another point presented in the consideration of this particular assignment of error, viz., that the shipment by the defendant to the plaintiffs of a car of coal in March, 1912, was in no way an approval and ratification of the alleged contract, for the reason that there is no evidence that at that time the defendant had any knowledge whatever of the alleged contract. .We cannot agree with this contention of the plaintiff in error her cause it would appear from the record that the witness Farrand testified that he brought back the contract after it had been executed by him and signed by one of the co-partners, and submitted it to the general manager of the defendant company. We therefore believe that it cannot be said that there is no evidence upon this point. The weight of this evidence was for the' jury under .the circumstances. We deem it unnecessary to further com sider this particular assignment of error, and for the reasons stated do not consider that the same was well taken-

[2]

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157 P. 167, 21 N.M. 531, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-mexico-colorado-coal-mining-co-v-baker-nm-1916.