Sheffield v. Ladue

16 Minn. 388
CourtSupreme Court of Minnesota
DecidedJanuary 15, 1871
StatusPublished
Cited by5 cases

This text of 16 Minn. 388 (Sheffield v. Ladue) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sheffield v. Ladue, 16 Minn. 388 (Mich. 1871).

Opinion

By the Court

Ripley, Ch. J.

The defendant, a travel-ling salesman for R. I. Johnson & Co., and having in his possession a pair of horses, the property of his employers, with authority from them to sell or exchange the same, exchanged them with the plaintiffs for a pair of horses belonging to the plaintiffs, and for the agreed difference in value between the two, executed and delivered to the plaintiff the following note:

Ninety days after date for value received, we promise to pay to the order of Sheffield and Leary, two hundred dollars, at H. Wilson & Co.’s bank with interest at seven per cent.
Faribault, April 3d, 1868.
R. I. JOHNSON & CO.,
per Jay Ladue.”

From the bill of exceptions in the case, it appears that at the trial there was evidence tending to show that defendant had no authority to give the note of said R. I. Johnson & Co., but that plaintiffs supposed he had.

[391]*391The plaintiffs’ counsel requested the court to charge the jury, that if they should find that the defendant made the note described in the complain! without having been previously authorized so to do by R. I. Johnson & Co. no subsequent ratification of this act by said firm, can exonerate him from liability to the plaintiffs.

The court refused so to do, and plaintiffs excepted.

The court charged the jury, that if the defendant gave the note described in the complaint, without being in any way authorized to do so, yet if the firm of R. I. Johnson & Co. afterwards, knowing all the facts, ratified this act, the defendant was not liable to this action, to which plaintiff excepted.

The plaintiffs contend that the defendant having made and delivered this note to the plaintiffs without authority, incurred an immediate liability to them for whatever injury had resulted from his wrongful act, either as on an implied warranty of said authority, or as for a deceit, or on the note itself as maker.

If he is liable on the note, it has oeen held, that subsequent ratification would not excuse him, because the note is his note when executed. Rossiter vs. Rossiter, 8 end. 494; Palmer vs. Stephens, 1 Denio, 471.

In our opinion, however, the weight of authority is decidedly, that one, who, without authority, executes an instrument in the name of another, whose name he puts to it, and adds his name only as agent for that other, cannot be treated as a party to that instrument, and be sued upon it, unless it bo shown that he was the real pri/neipal. 1 Parsons Cont. Book 1 ch. 3 p. 68, 69, Parsons Mer. Law ch. 10, sec. 5, p. 148; Jenkins vs. Hutchinson 13, Ad. & El. 744, 66 E. C. L. 751; Lyon vs. Williams, 5 Gray 557; 2 Smith Lea Ca. 366 et seq; Collen vs. Wright 40 Eng [392]*392L & Eq 182; Randall vs Twinen 37 Eng. L &Eq., 275, Jeffers vs. York, 4 Cush 371; Stetson vs. Patten, 2 Greenl 358; Abby vs Chase, 6 Cush. 54; Hopkins vs. Mehaffy, 11 Sergt. & R. 126; Moore vs. Wilson, 6 Foster (N H.) 332; Duncan vs. Nells, 32 Ill. 542, McHenry vs. Duffield, 7 Blackf. 41.

The plaintiffs rely upon Dusenbury vs. Ellis, 3 Johns. Ca. 70, and a series of New York decisions, as Rossiter vs. Rossiter, above cited, and Palmer vs. Stephens, 1 Denio, 471, and others following that case. These lay down the law as they have stated it, and their authority has been followed in several other states; but in White vs. Madison, 26 N Y. 117, Selden J delivering the opinion of the court of appeals says, that the authority of the New York decisions, above referred to, had been somewhat shaken by the remarks of the judges who delivered opinions in Walker vs. Bank of the State of New York, 5 Seld. 582, and that if it were necessary in the case before him to decide whether, as a general principle one entering into a contract in the name of another without authority, is to be himself holden as a party to the contract, he should hesitate to affirm such a principle. From this language it may fairly be inferred, that if the question were now a new one in New York, it would probably be differently decided.

If the authorities on which plaintiffs rely would not now be followed where they originated, the courts of a state in which the question is now raised for the first time, can hardly be expected to be guided by them, if the point is to be settled on the weight of authority. Nor, looking at the question in the light of reason, and not merely on authorities, is it peceived how the objection stated by Mr. Justice Selden, is to be got over ; viz : that by such a rule, courts would often make contracts for parties, which neither party [393]*393intended, or would have consented to make. Indeed, we think tho objection might be more strongly put; viz: that by such a rule, the courts would in every case make a contraer for the parties, which neither intended, and which in many cases neither would have consented to make.

Why should the court do this? The court of appeals in Walker vs. Bank of State of New York, say with perfect justice, that the doctrine in question having originated in the decisions referred to, the foundation of the rule must be taken to be as they state it. There can be no doubt that the foundation is, what the court of appeals say it is , misrepresentation and imposition This being so, the next question is, how is a contract which purports to be the con tract of A, to be turned into the contract of B.

In the leading case of Dusenbury vs. Ellis, this problem is thus solved : If a person, under pretence of authority from another, executes a note in his name, he is bound, the party who takes it under such a mistake or imposition, ought to have the same remedy against the attorney who imposes on him, as he would have had against the pretended principal if he had been really bound, and (to give him this remedy consistently with the general theory of contracts) the name of such pretended principal will be rejected as surplusage. Dusenbury vs. Ellis, 3 Johns. cases, 70.

That is, the court thus makes a new contract for the parties, because the party imposed on ought to have the same remedy as he would have had against the principal if there had been any principal.

But why ought he to have this remedy, to give him which, a court of law takes on itself to exercise an equitable jurisdiction, which a court of chancery would disclaim 1 Justice does not require it. In an action for damages, the party imposed on can recover full indemnity for all resulting in[394]*394jury, and exemplary damages besides, if a fraudulent intent appears — -on the note, principal and interest only.

The court of appeals admit that it jfiust, in any event, be considered as a concurrent remedy w in the remedy in case, and on the implied warranty. White vs. Madison, sup. p. 124.

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16 Minn. 388, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sheffield-v-ladue-minn-1871.