Trent v. Sherlock

61 P. 650, 24 Mont. 255, 1900 Mont. LEXIS 39
CourtMontana Supreme Court
DecidedJuly 2, 1900
DocketNo. 1,231
StatusPublished
Cited by19 cases

This text of 61 P. 650 (Trent v. Sherlock) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trent v. Sherlock, 61 P. 650, 24 Mont. 255, 1900 Mont. LEXIS 39 (Mo. 1900).

Opinion

MR. CHIEF JUSTICE BRANTLY,

after stating the case, delivered the opinion of the Court.

A reversal of the judgment herein is sought upon two grounds: (1) That the trial court erred in admitting in evidence the paper purporting to be a bill of sale executed by P. A. H. Franklin, as manager for the Hope Mining Company; and (2) that it committed error in refusing to give instruction No. 6, as requested by defendant, as follows: “An authority of Franklin to make the sale of the property in controversy, as it is claimed by plaintiffs that he did, cannot be implied from evidence that he did attempt to make the sale in question. ’ ’

1. No principle of law is more clearly settled than that an agent to whom is intrusted by a corporation the management [264]*264of its local affairs, whether such agent be designated as president, general manager, or superintendent, may bind his principal by contracts which are necessary, proper, or usual to be made in the ordinary prosecution of its business. (Thompson on Corporations, Sec. 4850; Victoria Gold Mining Co. v. Fraser, 2 Colo. App. 14, 29 Pac. 667; Sparks v. Dispatch Transfer Co., 104 Mo. 531, 15 S. W. 417, 12 L. R. A. 714; Ceeder v. Lumber Co., 86 Mich. 541, 49 N. W. 575; Stokes v. Jersey Pottery Co., 46 N. J. Law, 237; Georgia Military Academy v. Estill, 77 Ga. 409.) The fact that he occupies, by the consent of the board of directors, the position of such an agent, implies, without further proof, the authority to do anything which the corporation itself may do, so long as the act done pertains to the ordinary business of. the company. (Mathias v. White Sulphur Springs Association, 19 Mont. 359, 48 Pac. 624; Ceeder v. Lumber Co., supra; Adams Mining Co. v. Senter, 26 Mich. 76; Marlatt v. Levee Steam Cotton Press Co., 10 La. 583; Siebe v. J. Hendy Machine Works, 86 Cal. 391, 25 Pac. 14.) Even where the contract in question pertains to matters without the ordinary course of business, but within the power of the corporation, — that is, such as is not prohibited by its charter or by express provision of law, —the authority of the agent may be established by proof of the “course of business between the parties themselves; by the usages and practice which the company may have permitted.to grow up in its business; and by the knowledge which the board, charged with the duty of controlling and conducting the transactions and property of the corporation, had, or must be presumed to have had, of the acts and doings of its subordinates in and about the affairs of the corporation. ’ ’ (Mahoney Mining Co. v. Anglo-Californian Bank, 104 U. S. 192, 26 L. Ed. 707. See, also, Martin v. Webb, 110 U. S. 7, 3 Sup. Ct. 428, 28 L. Ed. 49; Sparks v. Transfer Co., supra.) “There is no reason, and can be no legal principle, which will put the agent of a corporation on any different footing than the agent of an individual in regard to the same business. ’ ’ (Ceeder v. Lumber Co., supra.)

[265]*265Applying these general principles to the facts in this ease, what rights, if any, did L. C. Trent & Co. acquire under the instrument in question? This instrument is denominated in the record a bill of sale. ” It is clear from an inspection of it, however, in the light of the facts surrounding its execution, that it is in fact, and was intended to be, a pledge of the Bryan mills as security for the price of the Chilian mills, which fell due on February 28, 1897. The ground of the objection to its introduction in evidence was, among others, that the proof did not show either an express or implied authority to enter into the arrangement disclosed by it. The proofs presented by the plaintiffs show that Franklin was in fact the superintendent of the mining and milling operations of the company at Basin, and not the general manager. One W. D. Field was the business manager, and had control over the finances of the corporation. Pitner was the president, and in supreme charge of its local affairs. The checks of the company were signed by Field under authority of Pitner, and countersigned by Franklin. Some time before the date of the transaction in question, Franklin had exceeded his authority by depositing the company’s money in his own name and issuing his personal checks; but this had been stopped by Pitner as soon as it came to his knowledge. In one instance, before the purchase of the Chilian mills from plaintiffs, Franklin had contracted for machinery, and signed the contract as manager. There was no proof that he had any authority from the directors to sell or pledge the property of the company, nor that he had ever assumed authority to do so before. Assuming that, by acquiescence by the compauy in his previous conduct, he had the implied authority to purchase machinery for use in the mills, and pledge the credit of the company for it, it does not therefore follow that he was authorized to sell or pledge the property thus purchased. Buying and selling, or pledging, are acts of a different nature. An authority to do the one by no means implies the authority to do the other; and, when it is sought to show an implied authority in the agent to do the act in question by proof of consent or [266]*266acquiescence of the principal, this can be done only by proof of consent to, or acquiescence in, acts of a similar nature, or by proof of such acts as tend to show a general power. (1 Am. & Eng. Ency. Law (2nd Ed.), 1002; McAlpin v. Cassidy, 17 Tex. 449; Rankin v. Mining Co., 4 Nev. 78; Thompson on Corporations, Sec. 4633.) The fact that Franklin, on two occasions, assumed to act as general manager of the business of the company in the purchase of machinery for use in the mill at Basin, does not in any way tend to show such a usage or practice in its affairs as that one dealing with him would be justified in acting upon the presumption that he had authority to execute the instrument in question.

Nor do we think the proof tends in any way to establish a ratification of the transaction on the part of the company. The proof on this point is meager and unsatisfactory at best, for it rests entirely upon a conflict of statement between Pitner and L. C. Trent. At most it shows merely that Pitner had referred Trent to Franklin, and had knowledge of some sort of an arrangement about the matter, made between them at the McDermott hotel in Butte. True, it appeared from defendant’s proof that Pitner was authorized by tbe by-laws of the company to make contracts for the purchase and sale of all property bought or sold by the company; but there was no power given him to delegate this authority to any other person. It is the rule that in the absence of authority, either express or implied, to employ a subagent, the trust committed to the agent is personal, and cannot be delegated to another. (Mechem on Agency, Sec. 185.) This is especially true where the performance of the agency requires the exercise of special skill, judgment or discretion. (Id. Sec. 186.) There was no proof tending to show that the directors ever knew anything of the transaction.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Audit Services, Inc. v. Elmo Road Corp.
575 P.2d 77 (Montana Supreme Court, 1978)
Johns v. Modern Home Crafters, Inc.
328 P.2d 641 (Montana Supreme Court, 1958)
Northern Mining Corp. v. Trunz
124 F.2d 14 (Ninth Circuit, 1941)
Electrical Products Consolidated v. El Campo, Inc.
73 P.2d 199 (Montana Supreme Court, 1937)
Bingham v. National Bank
72 P.2d 90 (Montana Supreme Court, 1937)
Dover Copper Mining Co. v. Doenges
12 P.2d 288 (Arizona Supreme Court, 1932)
Altermatt v. Rocky Mountain Fire Insurance
279 P. 243 (Montana Supreme Court, 1929)
Oscarson v. Grain Growers Assn., Inc.
277 P. 14 (Montana Supreme Court, 1929)
Wells-Dickey Co. v. Embody
266 P. 869 (Montana Supreme Court, 1928)
Alley v. Butte & Western Mining Co.
251 P. 517 (Montana Supreme Court, 1926)
Mayger v. St. Louis Mining & Milling Co.
219 P. 1102 (Montana Supreme Court, 1923)
Campbell v. Oriental Trading Co.
193 P. 1112 (Montana Supreme Court, 1920)
Bonanza Milling Co. v. Borrego
59 Colo. 365 (Supreme Court of Colorado, 1915)
Edwards v. Plains Light & Water Co.
143 P. 962 (Montana Supreme Court, 1914)
Supply Co. v. . MacHin
64 S.E. 887 (Supreme Court of North Carolina, 1909)
Asheville Supply & Foundry Co. v. Machin
150 N.C. 738 (Supreme Court of North Carolina, 1909)
Agle v. Standard Drug Co.
74 P. 135 (Montana Supreme Court, 1903)
Trent v. Sherlock
66 P. 700 (Montana Supreme Court, 1901)
Spelman v. Gold Coin Mining & Milling Co.
55 L.R.A. 640 (Montana Supreme Court, 1901)

Cite This Page — Counsel Stack

Bluebook (online)
61 P. 650, 24 Mont. 255, 1900 Mont. LEXIS 39, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trent-v-sherlock-mont-1900.