Turner v. Phœnix Insurance

21 N.W. 326, 55 Mich. 236
CourtMichigan Supreme Court
DecidedNovember 19, 1884
StatusPublished
Cited by3 cases

This text of 21 N.W. 326 (Turner v. Phœnix Insurance) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Turner v. Phœnix Insurance, 21 N.W. 326, 55 Mich. 236 (Mich. 1884).

Opinion

Sherwood, J.

This suit was brought to recover damages against the defendant for malicious prosecution. The plaintiff had been acting as agent of the defendant at East Saginaw, and in that capacity had collected some premiums which he refused to pay over when demanded by a special agent, the plaintiff claiming at the time the money was not due when demanded. Thereupon the plaintiff was complained of by a local agent named McClintock, residing at East Saginaw, and arrested for embezzlement. A hearing in the case was had before a magistrate and the plaintiff was discharged. He now brings his suit alleging that the arrest was authorized by defendant, and was unlawful, malicious and without probable cause. The defendant’s plea was the general issue. The plaintiff obtained a verdict at the circuit for $3070 and the defendant brings error.

The record contains the substance of all the evidence given upon the trial. Fifteen exceptions were taken to the rulings of the court in receiving or rejecting the testimony offered, one to the refusal of the court to give instructions to the jury, and one'to' the charge as given.

The evidence disclosed that the defendant company was located at Hartford, Connecticut; that H. M. Magill was the general agent of the defendant in Michigan and for the Western and Southern states, and had his office at Cincinnati; that he had the general charge of all the agencies and business of the company in Michigan in 1877 and 1878; that T. F. Spear was assistant general agent and also resided at Cincinnati; that H. II. Heaford, whose residence was at Jackson, was a special agent for the State of Michigan; that all agents were authorized to make collections and remittances for the [239]*239company, and any agent might employ an attorney when specially authorized so to do by the general agent or Mr. Spear.

It further appears by the record that the plaintiff Turner and said McClintock had been in business together at East Saginaw, and some time previous ,-to the prosecution complained of their business relations had been dissolved, Mc-Clintock continuing to act as the local agent for the company at that city.

It further appears that there still remained due from the plaintiff to the company on the 11th day of January, 1818, a balance of about $50, and judgment was obtained a short time thereafter against the plaintiff and McClintock for such balance, and it was because of the non-payment of this balance when demanded that the criminal prosecution complained of was instituted.

The local agent, McClintock, made the complaint upon which the warrant was issued, and the case was prosecuted at his request in behalf of the people by Michael Brennan, a lawyer who had his office with Wisner & Draper and who had formerly been their law student and at that time occasionally received claims from their office to collect. The claim against the plaintiff had been sent to Wisner & Draper for collection by the company and they had turned it over to Brennan for that purpose. It further appears that Brennan in his correspondence with the plaintiff, in his efforts to collect, had signed the name of Wisner & Draper to his letters in which a criminal prosecution is alluded to, if not threatened.

The plaintiff claims that the defendant authorized the criminal prosecution against him, and seeks to hold it responsible for the acts of its local agents and attorneys at Saginaw, who he insists advised and took part in the criminal prosecution; and further claims that if the defendant did not authorize commencement of the prosecution, it subsequently ratified what the local agents did, and the defendant is therefore liable for the alleged illegal act. It is not claimed by the plaintiff that the criminal prosecution was authorized, [240]*240aided or abetted, or even ratified, by the general office of the company, but by its general and special agents at Cincinnati, and by Heaford, its special agent in this State. Magill, Spear and Heaford all testified in the case, and all testified the prosecution was never authorized by them, or either of them, but on the contrary they were all opposed to it and that neither of them ever sanctioned, approved or ratified any act of the local agents or attorn ey, if any had been done for that purpose, and that none of their local agents had any general or special authority given them for such purpose.

It is further claimed by defendant that not only was no such authority given to their attorneys Messrs. Wisner & Draper by the company, but that said attornej’s never exercised such authority, and neither consented to nor approved of tSe prosecution complained of.

After the testimony in the case was closed, the circuit judge, on request of defendant’s counsel, submitted to the jury five requests for specific findings, which requests and findings appear in the record as follows:

“1st. Was plaintiff prosecuted criminally by any agent of defendant? Answer. Yes.
2nd. If you say yes to above, name the agent. A. Wisner & Draper, Heaford and Magill.
3rd. If you say yes to No. 1, state who, if any one, acting for defendant, authorized or directed the prosecution. A. Wisner & Draper, Heaford and Magill.
4th. Was the act of the person commencing the prosecution subsequently adopted or ratified by defendant’s agents ? A. Yes.
5th. If you say yes to 4th, state what agent so ratified or adopted it.- A. Heaford and Magill.”

It will be noticed that the jury found by their verdict that both Heaford and Magill not only prosecuted the criminal suit, but that the acts of McClintoek and Brennan in commencing it, were subsequently adopted and ratified by them.

These findings present three questions for our consideration, either of which decided in favor of defendant will render a new trial necessary: First. Could Magill and Heaford or either of them bind the defendant, so as to make it liable [241]*241for the unlawful criminal prosecution of the plaintiff under the general authority of the one and the special authority of the other given by the company ? Second. Was there any evidence in the case tending to show that Magill prosecuted, or authorized or approved of the prosecution, of the plaintiff, criminally? Third. Was any part of the evidence tending to prove these facts improperly admitted by the circuit judge?

We think the first question must be answered.in the affirmative. The company had a legal existence in this State and was authorized to do business therein. It could only act through officers or agents. It had no general office here, and was therefore obliged, in transacting its business, to act through agents. There is no question but that Magill was empowered to act as such in this State. He was its general agent, and unless the contrary appears, must be held, within the territorial limits of his agency, invested with all the powers necessary or proper in conducting the business of a general officer of the company. Any other construction would be attended with great inconvenience and many times work injustice to those with whom the defendant had dealings.

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Cite This Page — Counsel Stack

Bluebook (online)
21 N.W. 326, 55 Mich. 236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/turner-v-phnix-insurance-mich-1884.