Pierce v. Smith

103 S.W.2d 353, 193 Ark. 869, 1937 Ark. LEXIS 86
Supreme Court of Arkansas·Decided March 29, 1937·No. 4-4576·Published·Cited by 1 cases

Opinion

Mehaeey, J.

E. Z. Pierce was, in his lifetime, the owner of a farm in Tell county, Arkansas, consisting of about 246 acres. He died many years ago, and Mrs. W. S; McCarroll inherited this land subject to the dower right of'Mrs. Sallie J. Pierce, surviving widow of E. Z. Pierce, deceased. On November 27, 1929, W. S. McCarroll entered into a written contract- by which the land described was rented to Seth Smith. The contract was from January 1,1930, to December 31,1930, and the rent was $3,000, and the lessee executed two -promissory notes, one for $2,000 and one for $1,000. Smith had to have assistance to purchase feed and seed, without which he could not cultivate the land. McCarroll and Smith estimated that it would take about $1,000 to pay for feed and seed to be used in making the crop. It was understood between them that this money would have to be borrowed, and that the money so borrowed would be paid out of the proceeds of the crop before any rent was paid, and that the landlord’s lien would be waived for that purpose.

In February, 1930, McCarroll and Smith went to the Merchants & Farmers Bank in Atkins to borrow $1,000, and offered a rent note for $1,000 as security. This rent note was made payable to W. S. McCarroll. The president of the bank declined to make the loan at that time, and McCarroll and Smith, on March 3, applied to the First National Bank of Dardanelle, where they succeeded in obtaining a loan of $600.

O. S. Anglin sub-rented a portion of the land from Smith. The $600 borrowed at Dardanelle was not sufficient to pay for the feed and seed, and Anglin, Smith and McCarroll executed a note to the Merchants & Farmers Bank of Atkins for $400.

Suit was brought by the appellants to recover seven bales of cotton which had been delivered to the Federal Compress Company, and the warehouse receipts were delivered to the Merchants & Farmers Bank at Atkins. The appellants claimed a landlord’s lien on .the ■ cotton, and procured a writ of attachment and thereby obtained possession of the seven bales of cotton. They gave bond and the cotton was sold for $254.62.

A second suit was filed by Mrs. Sallie J. Pierce, Mildred Louise Sibley, and Margaret Jane Harrison, the owners of said land, against Seth Smith, a tenant, and O. S. Anglin, a sub-tenant, the Merchants & Farmers Bank and Federal Compress Company, alleging an indebtedness for $2,214.95 balance, and asking a landlord’s lien against the cotton, together with judgment for the amount.

Answers were filed in these suits denying the allegations of the complaints and the cases were submitted to the court, sitting as a jury. The court gave judgment against Anglin, Smith and McCarroll for the amount of the $400 note and interest, dismissed the attachment and gave judgment for $259.54 in favor of the Merchants & Farmers Bank for the $259 for which the cotton was sold, against Sallie J. Pierce, Mildred Louise Sibley, Margaret Jane Harrison and Fidelity & Deposit Company of Maryland, sureties on the attachment bond. This appeal is prosecuted to reverse said judgments.

Appellants state that the only question involved is the sufficiency of the testimony to show that the landlords or owners of the property, are bound by the signing of a note personally by W. S. McCarroll. In other words, was W. S. McCarroll the agent of the landowners with authority to manage and rent the farm, borrow money to have it farmed, and waive the rent in favor of the person who loaned the money?

There is no presumption that McCarroll was the agent with the authority to do these things, but the burden is upon the person claiming that the agent has the authority, to make the proof of his authority. It is not necessary, however, that this be shown by direct evidence.

“As a general rule, whatever evidence has a tendency to prove an agency is admissible, even though such evidence may not be full and satisfactory. Direct evidence is not indispensable — indeed, frequently, it is not available; circumstances, such as the relation of the parties to each other and their conduct with reference to the subject-matter of the contract, may be relied upon. It is also permissible to prove a previous course of dealing.” 2 Am. Jur. 351, § 443.

Neither agency, nor the extent of an agent’s authority, can be established by the declaration or acts of the agent without showing the principal’s knowledge of such acts, or his assent to them.' However, where the acts are of such character and so continuous as-to justify a reasonable inference that the principal had knowledge of them, and would not have permitted them if unauthorized, the acts themselves are competent evidence of agency. -

It is well established that a principal cannot ratify a portion of an unauthorized action and not ratify the whole of it. .He cannot avail himself of the acts that are beneficial to him and repudiate the acts that are detrimental to him. Kirkpatrick Finance Co. v. Stotts, 185 Arle. 1089, 51 S. W. (2d) 512; 21 R. C. L. 923.

There was introduced in evidence, a power of attorney executed by Mildred Louise Sibley and Margaret Jane Harrison to W. S. McCarroll, authorizing him to contract rent and collect for the' year 1927 and each year thereafter, unless this authority is revoked in writing. The power'-of attorney then describes the lands on which the rents are to be collected. It is contended that this power of ■ attorney : did not authorize the borrowing money, or the doing of any other things except to rent and collect the rent. There was no power of attorney given by Mrs. Pierce, and Mr. McCarroll testified that he did not pretend to have the power of attorney for her. When asked the question: “You acted as if you did have?” he answered: “I was acting and she never gave me any power of attorney. That was our business. ”

The rental contract with Smith was signed by McCarroll as attorney in fact, and rented the entire property to Smith. This included Mrs. Pierce’s part as well as- the others. McCarroll’s children, who inherited the property from their mother, were the grandchildren of Mrs. Pierce. Mrs. Pierce is now dead and Mr. McCarroll first testified that she died in 1929. ■ He afterwards said that he was mistaken about this, and that she died in 1931.-

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Pierce v. Smith, 103 S.W.2d 353, 193 Ark. 869, 1937 Ark. LEXIS 86 (Ark. 1937).

103 S.W.2d 353 (Pierce v. Smith) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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