Taylor v. Sartorious

108 S.W. 1089, 130 Mo. App. 23, 1908 Mo. App. LEXIS 189
CourtMissouri Court of Appeals
DecidedFebruary 4, 1908
StatusPublished
Cited by32 cases

This text of 108 S.W. 1089 (Taylor v. Sartorious) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taylor v. Sartorious, 108 S.W. 1089, 130 Mo. App. 23, 1908 Mo. App. LEXIS 189 (Mo. Ct. App. 1908).

Opinion

GOODE, J.

(after stating the facts). — 1. An attentive study of the evidence has discovered none except what relates to the alleged alteration of the written authority of Texier, which tends to prove he attempted to perpetrate a fraud against appellant and her associates in business, and none at all that if a slip bearing the disputed words was attached to the writing, •empowering him to act as agent, and he subsequently ■detached it for a fraudulent purpose, either Turley or [33]*33Bock knew these facts when they dealt with him, or other facts which would canse a prudent man to distrust the apparent grant of authority contained in the writing. It follows that the court properly instructed the jury there was no evidence that either Turley or Bock was connected with any fraud of which Texier may have been guilty in connection with the purchase of the property in controversy.

2. We are of the opinion that the first instruction for respondent is erroneous in making appellant liable if she and her associates did business in coal in St. Louis pending the formation of the proposed corporation, and in the conduct of such business Texier signed the hill of sale in the name of the contemplated Sorento United Coal Mining Company. The complaint counts on express authority from appellant and her associates to Texier to sign the bill of sale, and not on his apparent authority, as a member of the alleged partnership, to bind the other members. The complaint says, ■“defendants by their dutly authorized agent, signed the agreement.” This statement shows the pleader had in mind and meant to declare on, the writing under which Texier assumed to act and not on a constructive agency. Moreover the written authority of Texier was exhibited to Turley and Bock, and they relied on it in dealing with him instead of on any implied authority he might have as a partner. The so-called power of attorney was shown to Turley and Bock and, according to their own testimony, they deemed it conferred power on Texier to make the purchase. Hence, even if he was a copartner of appellant, Turley and Bock had no right, when dealing with him, to rely on his constructive authority as such, when the precise extent of his actual authority was known to them. The power conferred by law on one partner to act as the agent for a firm, may he limited by the other members of the firm, just [34]*34as the authority incident to any other agency may be restricted by the principal and the restriction become binding on all who are apprised of it. [Midland Bank v. Schoenberg, 123 Mo. 650, 27 S. W. 547; 1 Bates, Partnership, sec. 315.] If a person relies on an express authority to one.member of a partnership to act’ for the firm, he must deal with the member within the terms of the authorization, as in other sorts of agencies. [Bates, sec. 368.] The case Avas submitted to the jury on two inconsistent hypotheses; that appellant was liable if the express written authority exhibited by Texier and relied on by the sellers, was genuine, and liable, too, even if it was false, provided appellant and Texier were partners and he bought the property in dispute in the name of the firm. The latter proposition is equivalent to holding that a party knowing an agent is acting under an authority of definite scope, nevertheless may make contracts within the scope of the apparent powers the agent, may be presumed to possess by one ignorant of his actual powers. This is not the law as was ruled in a ease where the point was raised on facts analogous to those before us. [Mechanics Bank v. Schaumberg, 33 Mo. 228.]

3. In the third instruction for respondent, the jury was directed to give a verdict for him, if appellant and her associates so loosely attached the slip containing the words “subject to the approval of all parties concerned” to Texier’s power of attorney as originally drawn, that the slip could easily be detached and it was detached before the document was shown to Turley and Bock, who Avere ignorant of the change of the document when they dealt with Texier. This instruction permitted a recovery on the ground that appellant’s carelessness in the preparation of the instrument, enabled. Texier fraudulently to make a showing of authority beyond what he possessed. We suppose the idea is that she is estopped to dispute his power to bind her. A [35]*35principal is responsible for the acts of one who is bis agent, or appears to be, if responsibility is asserted on tbe ground of apparent authority in the agent to do the acts, only in case the principal himself has clothed the agent with the appearance of power and not when the agent’s own conduct creates the appearance. [Edwards v. Dooley, 120 N. Y. 540; Leu & Sons v. Mayer, Sells & Co., 52 Kan. 419.] It is true that this false appearance may sometimes be traceable to the negligence of the .principal; that is, to such conduct as a principal of ordinary prudence would have avoided, and which would suffice to induce one of ordinary prudence to believe the agent’s power is of a given scope.- But we know of no decision, the principle of which would render Mrs. Sartorius answerable for an act done by Texier outside the grant of power conferred on him by the document as it was when signed by her, merely because a part of said document could be easily detached' from the rest. If, in truth, Texier detached the words “subject to the approval of all parties concerned,” thereby leaving his powers apparently unrestricted by the signers, his act was akin to forgery, and he alone responsible for it. It is hardly possible for a principal to prevent an agent from increasing his appearance of authority by forgery or other fraudulent practices. Attaching the slip to the rest of the instrument so loosely that it could easily be separated, would facilitate a fraudulent attempt by Texier; but the like danger would be entailed by a written authority to an agent containing blank spaces which he could fill in with words enlarging his authority. Nevertheless it is not the law that a principal is liable simply because such spaces are left and fraudulently filled in by an agent so as to enlarge his powers. The case is different from that of printed forms of negotiable instruments containing blanks which are usually filled by writing words in them, like the rate of interest. Some decisions [36]*36bold, that when blanks of this character are left in an instrument by the maker, and subsequently filled by the payee, the maker is bound. [3 Randolph, Com. Paper (2 Ed.), secs. 708, 1768, 1770.] This rule, in so far as it exists, refers to customary blank spaces which are habitually filled, and not ¡to every blank space which may be left between lines in drawing an instrument. [Capital Bank v. Armstrong, 62 Mo. 59; Mechanics Bank v. Valley Packing Co., 4 Mo. App. 200; s. c., 70 Mo. 643; McGrath v. Clark, 56 N. Y. 39; Franklin Life Ins. Co. v. Courtney, 60 Ind. 134.] .Texier was not authorized to alter the so-called power of attorney in any respect, and if he altered it so as to change its sense, this was a fraud for which the signers cannot be held. [State v. Kroeger, 47 Mo. 552; Puffer v. Smith, 57 Ill. 527; Strough v. Gear, 48 Ind. 100; Robb v. Insurance Co., 40 Atl. 969.] As a general proposition the alteration of an instrument after delivery vitiates it. [Kelly v. Thuey, 143 Mo. 422, 45 S. W. 300; Mockler v. St. Vincent Inst., 87 Mo. App. 473.] Both parties have briefed the case on the theory that the words on the slip were sufficient, if in fact they were part of the power of attorney, to withhold from Texier the power to buy the property in dispute, without first obtaining the approval of his associates; and we shall ádopt this theory in disposing of the appeal.

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Bluebook (online)
108 S.W. 1089, 130 Mo. App. 23, 1908 Mo. App. LEXIS 189, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taylor-v-sartorious-moctapp-1908.