Witcher v. McPhee
Witcher v. McPhee
Opinion of the Court
Suit upon two promissory notes executed to the plaintiffs, one for $1,000, dated August 10, 1896, due in thirty-five days, and the other for $163.65, dated December 10, 1896, payable on demand. There was a verified answer denying the execution and delivery of the notes. The signature affixed to each note was “ J. R. Witcher, L.” Witcher was a lumber dealer at Cripple Creek, Colorado, and operated a sawmill at a considerable distance out; and at the date of these notes, and for a considerable time before, his lumber business was carried on under the management of A. H. Lefler. It was shown by a witness qualified to testify on the subject, that these notes, and the other exhibits produced, were in the handwriting of Lefler. The evidence was uncontradicted. The consideration of the notes was lumber furnished by the plaintiffs to the defendant, and the controlling question in the case relates to the authority of Lefler to bind the defendant by the notes.
Before proceeding to the consideration of this question, it will be well to dispose of the following instruction given at the request of the plaintiffs, to which the defendant takes serious exception: “-The defendant alleges that the notes in question were executed by one Lefler without authority from him to make such notes.” Neither in his answer nor in his testimony did the defendant allege that the notes were ex
Prom the evidence, it appears that for a considerable time before and after the making of the notes, there were continuous business transactions between the plaintiffs and the defendant, all of which were managed in behalf of the defendant by Mr. Lefler. A number of letters to the plaintiffs relating to these transactions were in evidence. They covered a period of time extending from December 9, 1895, to December 12, 1896, and the earliest of them refers to previously transacted business. They were all signed “ J. R. Witcher, L.,” except one, and that was signed “A. H. Lefler.” They contained orders for lumber, remittances on account, checks to be credited on the notes, and requests for time.
The plaintiff, McGinnity, had a conversation with the defendant at the office of the plaintiffs, in which, in response to some remark or suggestion of McGinnity about the purchase of goods, the defendant said he had nothing to do with the
Witcher testified that Lefler had no authority from him to buy on credit, or make any papers, and that Lefler was im structed to do a cash business. When the instructions were given, he did not say, but if such was the original situation, the authority must have been changed, and the instructions revoked, for Lefler did not do a cash business, and, so far as can be gathered from the evidence, all the purchases were made on credit. Witcher was present a number of times when Lefler was buying on credit, and gave no sign of disapproval. Lefler made notes other than those in suit, Witcher knew he made the notes, and secured some of them, but if Witcher ever called Lefler to account for disobeying his instructions in giving the notes, the evidence makes no mention of the fact. Lefler continued in charge of the business as before, and conducted it as before, without protest from Witcher. It is to be presumed that a principal will not tol
Respecting the proposition that it is the duty of a person dealing with an agent to inquire into the extent of his authority, we have no controversy with counsel. Ordinarily, unless the conduct of the principal renders inquiry unnecessary, persons transacting business with an agent are bound by the limitations upon his authority. But when the power of the agent is absolute, inquiry would disclose no limitations; whatever the principal might do, the agent might do; and any lawful act of the agent in relation to the business, — any act which the principal himself might lawfully perform, — would have the same force, and be followed by the same consequence as if it had been done by the latter.
We think the finding, necessarily involved in the verdict, that Lefler had authority to make these notes, was warranted by the evidence.
The judgment will be affirmed.
Affirmed.
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