Nitro Powder Co. v. American Powder Mills

27 Colo. App. 373
CourtColorado Court of Appeals
DecidedApril 15, 1915
DocketNo. 4168
StatusPublished

This text of 27 Colo. App. 373 (Nitro Powder Co. v. American Powder Mills) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nitro Powder Co. v. American Powder Mills, 27 Colo. App. 373 (Colo. Ct. App. 1915).

Opinion

Bell, J.

In this action American Powder Mills, defendant in error and plaintiff below, hereinafter called plaintiff, seeks to recover of Nitro Powder Company, plaintiff in error and defendant below, hereinafter called defendant, the value of certain shipments of fuse, which it claims to have sold and delivered to defendant through A. A. MacLean, its agent in Denver.

Both plaintiff and defendant are foreign corporations, authorized to do business in this state, and acting here at the time of the transactions in controversy through agents, George T. Kearns and A. A. MacLean, respectively, by whom the alleged sales were negotiated. Defendant denies any and all knowledge of the purchases so charged to it, made by MacLean, and contends that said MacLean, by virtue of a written contract, was merely its sales agent, with no authority whatever to bind it for any purchases. The case was tried to a jury and resulted in a verdict for plaintiff, upon which judgment was accordingly entered.

On page 3 of its brief and argument plaintiff says: “It appears from the testimony introduced at the trial that MacLean’s actual authority was merely to act as sales agent [375]*375for the Nitro Powder Company. It is our contention, however, that notwithstanding this actual limitation upon Mac-Lean’s power, the Nitro Powder Company is nevertheless liable for the purchase price of the fuse in question, for the reason that MacLean in so purchasing the fuse was ácting within the apparent scope of his authority,*” and on page 19, after stating the general rule to the effect that where a person holds out another to the public as having a general authority to act for him in the particular business in which he is engaged, third persons may safely deal with the agent in the transaction of such business, it says: “It is upon this principle that we rely to sustain our contentions in this case.”

In proof of defendant’s liability, plaintiff relies upon the facts that MacLean occupied offices at 51 Bank Block, Denver, upon the door of which was printed, to the knowledge of the defendant company, “Nitro Powder Company, Kingston, N. Y.,” with a description of Nitro Palistine Powders and the name “A. A. MacLean, Agentthat MacLean, with the acquiesence of the defendant company, used stationery upon which was printed the name “The Nitro Powder Co.,” with the names of its officers and directors, its -New York address, its trade mark, the names of its products, with the dates of their patents, together with the following:

“Dealers in
Fulminating Caps, Batteries, Fuse and Other Mining Supplies.
Western Office,
A. A. MacLean, Agent. 51 Bank Block,
Denver, Colo.”

that MacLean' carried an account in one of the Denver banks, upon which he drew checks to the order of plaintiff, signed “Nitro Powder Company, A. A. MacLean, Agent,” in payment of other shipments of fuse and powder; that the account charged to the defendant company by plain[376]*376tiff covered a period of over five months; that correspondence regarding it received by plaintiff was written on stationery similar to that above described, and signed with a rubber stamp “Nitro Powder Co.,-Agent,” with MacLean’s name or initial preceding the word “Agent;” that the goods in question were ordered by Mac-Lean, or his stenographer, the orders transmitted to the plaintiff company by Kearns, the goods shipped through The Denver Transit & Warehouse Company for the Nitro Powder Company, subject to MacLean’s directions, and the invoices for each shipment were mailed to the Nitro Powder Company at Denver, together with the bills of lading.

In Gates Iron Works v. The Denver Engineering Works Company, 17 Colo. App., 15-23, 67 Pac., 173, almost identical facts were relied upon by the plaintiff therein to establish its claim for the value of goods, wares and merchandise alleged to have been sold and delivered to the defendant. There, as in the instant case, the evidence showed that the headquarters of the defendant were outside of the state; that B. L. Berkey was its agent in Denver; that the property sold by the plaintiff, and with which it sought to charge the defendant, was mining machinery; and that it was sold to Berkey, who bought it in the name of the defendant. It was not shown that Berkey had any actual authority from the defendant to purchase the machinery, or that his action in the matter was ratified, or that the defendant derived any benefit from the purchase, or knew anything whatever about the use of its name in the transaction. The sole ground upon which the liability was asserted was that the defendant clothed Berkey with an.appearance of authority, upon which the plaintiff had the right to rely. This appearance of authority consisted in a sign on the office window bearing the name of the defendant, Gates Iron Works, a description of the manufacturers, the words “Mining Machinery of all Kinds,” and underneath the name B. L. Berkey, Manager. This sign was on the window when the [377]*377order for the goods was received; the letter head of defendant contained the picture of a machine shop, the defendant’s name, the names of its officers, the names of its manufactures, its Chicago address, together with the following: “B. L. Berkey, Man’g’r, 422 Seventeenth St., Denver, Colo.;” defendant’s business card, which its agent, Berkey, used, also contained a picture of its manufacturing establishment and machine shops, its name, business and specialties; its Chicago address, and the name of B. L. Berkey as Manager, with the Denver office and telephone number; and it was testified to that Berkey issued a circular announcing his employment by the defendant company, and the opening of his office, and it was shown that the letter head and card came from the defendant, and that the defendant knew that Berkey advertised himself as manager o.f its Denver office. William J. Miller, general manager of the plaintiff company, testified that the plaintiff had no knowledge of the relations which Berkey bore to the defendant, other than that furnished by the letter heads and sign on the office window; that he made no inquiry with reference to the authority of Berkey from anyone, and that he relied simply on “the letter head and what was painted on the office, and their business card and circular.” Passing upon these facts, the court said:

“There was nothing in the evidence of authority which Mr. Miller saw, and upon which he relied, to warrant him in assuming that Mr. Berkey had any authority to buy mining machinery. So far as appearances went — at least appearances for which the defendant was responsible — the purchase of mining machinery was no part of the defendant’s business; and there was nothing to indicate that Mr. Berkey was empowered to act outside of its business. There was no apparent authority in Berkey to buy this machinery; and in order to bind the defendant by his contract, the burden was on the plaintiff to prove that the purchase was specially authorized by it.”

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Related

Silver Mountain Mine Co. v. Anderson
51 Colo. 298 (Supreme Court of Colorado, 1911)
Salene v. Queen City Fire Insurance
116 P. 1114 (Oregon Supreme Court, 1911)
Gates Iron Works v. Denver Engineering Works Co.
17 Colo. App. 15 (Colorado Court of Appeals, 1902)

Cite This Page — Counsel Stack

Bluebook (online)
27 Colo. App. 373, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nitro-powder-co-v-american-powder-mills-coloctapp-1915.