American Diabetes Ass'n v. Abbey, Mecca & Co.
Opinion of the Court
Memorandum: Plaintiff commenced this breach of contract action, seeking to recover the cost of two full-page advertisements ordered by defendant, an advertising agency. The advertisements were included in a monthly magazine published by plaintiff and featured a product sold by one of defendant’s clients, Incline Medical, LLC (Incline). Incline failed to pay for the advertisements following their publication and later became insolvent. Plaintiff did not require payment for the advertisements in advance, and defendant did not sign a guarantee. Supreme Court properly granted the motion of defendant for summary judgment dismissing the complaint on the ground that, in ordering the ads, it was acting as an agent on behalf of a disclosed principal. “ ‘When an agent acts on behalf of a disclosed principal, the agent will not be personally liable for a breach of contract unless there is clear and explicit evidence of the agent’s intention to be personally bound’ ” (Simmons v Washing Equip. Tech., 51 AD3d 1390, 1392 [2008]). Defendant met its initial burden on the motion by submitting copies of e-mails demonstrating that it made it clear to plaintiffs sales representative that the ads were being ordered on behalf of Incline, and that defendant did not evince an intent to pay for the ads itself.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.