162 Misc. 344 | N.Y. Sup. Ct. | 1937
If the signatures to the bond upon which the present rdnlm is based had been forged and the bond delivered by a
Tested by these principles, the surety company must be held liable, for its negligence permitted Schlesinger to clothe himself with apparent authority to deliver bonds or instruments of the surety company and to “ make representations as to their authenticity.” No useful purpose would be served by reviewing at length the evidence bearing on Schlesinger’s relationship to the surety company and the manner in which he was permitted access to its stationery, forms, seal and fully executed authenticating certificates. Suffice it to point out that, in addition to these circumstances, it had been customary for the surety company to permit Schlesinger to deliver bonds and other instruments on which it was liable and to collect the initial premiums. People calling up the surety company to apply for bonds or amendment of bonds were customarily referred to Schlesinger whose office was in the offices of the surety company and whose telephone extension was connected with the surety company’s switchboard.
The evidence establishes that through the negligence of the surety company, Schlesinger was clothed with apparent authority to deliver bonds and undertakings for it and to make representations
For the reasons indicated, the motion to confirm the report of the referee is denied, and the cross-motion to reject the report and allow the claim is granted. No interest, however, will be allowed. Settle order.