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Land-Air, Inc. v. Parker
435 P.2d 838
Ariz.
1967
Check Treatment

*1 LAND-AIR, INC., Appellant, corporation, Baptist J. Western Norman PARKER and Association, Hospital non- an Arizona corporation, Appellee. profit

No. 8927-PR. Arizona,

Supreme Court of

In Banc.

Dec. 1967.

Rehearing Denied Jan.

Thayer Lindauer, appel- Phoenix, C. for lant. Hill, Savoy, Savoy Flickinger, E. & John

Phoenix, appellee Baptist for Western Hospital Association. Cox, Jr., Hedberg, Cox & James J.

Phoenix, appellee Norman Parker. J. McFARLAND, Vice Chief Justice: Petitioners, Dr. Norman Parker and J. Baptist Hospital Association, Western who appellee-defendants, petitioned were re- view of Appeals decision (Land-Air, Inc. v. Norman Parker and J. Baptist Hospital Association, Western Ariz.App. 395, 420 P.2d re- 967), which Superior Maricopa versed Court of Coun- ty judgment rendered their favor. We granted petition for review. plaintiff Inc., in the trial court herein, respondent hereinafter referred Land-Air, brought to as this action to plevy equipment under the contracts execut- by petitioner-defendant ed Norman Dr. J. Parker, designated hereinafter or, alternative, at- damages torneys’ execu- fees. Parker admitted the contracts, he was tion of the but denied present equipment and denied owner of liability ground that the conditional terminated, cancelled, sales contracts were agreement. refinancing and novated pre-trial upon stipulation hearing, At the parties, agreed it was one issue e., would be tried —i. whether the condi- tional sales contracts assignee and had been cancelled *2 2 subsequent agree-

novated of a 2 reason under above. court No. The lower found trial ment. The court heard the cause with- presented facts and circumstances jury, granted judgment out and Hospital. Baptist

Parker and From with enter a novation into appealed judgment Land-Air the contracts. principles Under established appellate procedure, Appeals, which in favor reversed affirm must any Land-Air. the trial court if “we can on reasonable view the evidence deduce therefrom dis- and manufacturer which, any law, theory facts of the its X-ray equipment. tributor of One of judgment.” would sustain v. Colvin X-ray equipment machines and additional Superior Co., 113, Equipment Ariz. 392 were sold to Parker Allied Medical 778; P.2d Babbitt & Cowden Livestock Co. Allied, a Supply, designated hereinafter re- Hooker, 263, v. 28 Ariz. 236 P. 722. handling prod- tailer some of Land-Air’s Parker, osteopathic physician, ucts. sales Parker into the conditional entered purchase and made a down Allied, corpo- Mexico contracts with New executed two conditional sales contracts ration, equipment in purchase covering assigned balance 1959, due. question. 23, September On Land-Air, as- contracts in turn to contracts to transferred the signee, right of who retained recourse Land-Air, Parker acknowl- with recourse. assign- against Allied. Due notice of the assignment, which edged notification of the Parker, 21, ment was September acknowledgment was dated May delin- 1961 Parker became 1959. principal question in this case quent payments the contracts. under agent of is whether Allied was an subsequent pay- Parker to make failed to cancel the conditional despite several ments on contracts Parker Land- sales contracts between do asking him to so. letters from Land-Air assignee Air as and enter into novation. Allied, result, Land-Air then As contacted has conditions This court set forth four something dealer, hopes could be agency proved. be which under get make the overdue Parker done By express con- 1. direct of an evidence atten- payments. The matter came to the agency tract of who, in at E. Hare tion of James agent. turn, met with Parker. impli- 2. of facts raise the Proof which that he was Parker contended Because agency cation such a contract — payments, Hare conceiv- unable to make the proved by direct does not have be equip- whereby the arrangement ed testimony; may proved as being question, removed without ment may other fact and be established office, Na- could be sold to from Parker’s from other circumstances such as Co., in turn Leasing tionwide parties of the to each other and lation equipment Both back to Parker. lease the subject to the matter. agreed this ar- and Nationwide By 3. ratification. Hare, $6,344.80 rangement. who received By estoppel. price, “purchase” from Nationwide 706; Moser, 185, v. 55 Ariz. Bristol 99 P.2d disappeared, conveniently while then Green, Litchfield Ariz. v. became defunct. Brown, 290; 11 P.2d Little and lease-with- after sale Sometime question then the instant case 610. The agreement between an-option-to-purchase prove the facts under whether Nationwide, as as- Nationwide and principles of these of law. Exchange signor, assigned interest payments un- Parker made agency, it National Bank.

If establish until agreement Nationwide his may and circum der be shown the facts lease-option-to-pur- August relationship parties when stances of the of the assumed No, practice chase was Children’s Oste- a rule it’s opathic Hospital, approval with the Ex- immediately you’d reassign it then change Bank, assignee National Na- going back and forth.

the instant *3 tionwide, wherein the Association, ment. Thereafter suit suit pay Arizona. dren’s ed to the Children’s recover the trial below. been Exchange against Hospital obligations paid under an Subsequent case, Parker and Children’s Parker for a Children’s then equipment, National Bank then defaulted full Western acquired possession under assumption agreement Hospital equipment thereto, Hospital Pai-ker at the time other under and also instituted deficiency Baptist Hospital defendant lease in the Chil- agreed Phoenix, contract, Hospital brought agree- mov- to you were right ? “Q that either ary collect this “A That’s correct. who “A [sic.] them on 20, 1961, account or went told So going your [*] Allied Medical back to Allied Medical You went collect to have account or you [*] perhaps recourse, Allied Medical were or settle it [*] back to the prior account pay is that going Supply either is and told that it, [*] to to isn’t or right? or go Febru- Supply dealer [*] settle them time, back they equipment. upon No demand was made “A the term ‘collect’. I did not use completion from used— these transactions with Allied and Nation- n —didn’t testify “Q you just that? IS, days wide from until a few June ‘col- “A don’t used the word believe I original complaint before the was filed lect’, no. September period 1962—a of over fourteen “Q your testimony, That’s not months. right ? Jackson, Edward H. credit manager for you “A The whether use basis around Land-Aii-, testified, part, as follows: not, actually we collect or what word “A There is a differentiation between payment tell from them to do is obtain up follow an accounts receivable them them and under a contract ask up follow contract. payment them. obtain from period After a certain of time on as- “Q settlement, or Obtain wasn’t signed contract a letter two where or your testimony ago? minute brought any has not results it is then right, they “A That’s or settle have to back to the dealer. referred themselves, it because— “Q you expect And the dealer make “Q they—If it have to settle themselves you? the collection for they you, becomes account isn’t owe me, “A Not for he either collects it right? settles the account in order to avoid “A papers We would not release the repurchase having equipment naturally them, paid until we were contract. why it reassigned that’s not be would “Q He they collects settles did unless remit to us for it. rebuy so that he’s not going have to “Q February 20, 1961, But1on that was you

it back from ? the status of receivable, this Parker isn’t ?so right. “A That’s right, they subject “A That’s were “Q you But he did things while to.

were the owner of the me account? Let specific; you in this did not “Q February you case reas- ef- ceased sign Medical, this contract to Allied did fort whatever collect Dr. you? Parker, isn’t that so? funct, Parker. decided to sue then Dr. direct contact with made no We It no other choice. Parker. court’s conclusion con- trial any kind of you make “Q did How acts which those do tact? logical in perform quite in fact it did through go “A We seeming light Land-Air’s unconcern practice. common Supply, this enforce Park- further efforts to sup- were ones that They “Q were obligation. personal After the account er’s collecting? posed to do Allied, Land- “referred back” to had been *4 get doctor to the that were The “A ones over Parker for Air made no contact with paying schedule.

to renew after months, and it not until was fourteen you then defunct “Q Allied went After that counsel Allied defunct became right? to Dr. is sue decided telephoned Dr. Parker. Land-Air even support the lower Facts which further no choice. hadWe grant au- of finding of a court’s broad ****** are: thority by its Allied Land-Air to all perfectly “Q have been It would Land-Air, to in by act (1) choosing Supply to re- right for Allied behalf, very party with whom chose Parker, you money from Dr.. ceive previously dealt, and who—dur- Parker had it, you ? to didn’t wanted them do ing previous dealings Parker —had it.” correct, they if received “A That’s by any agency, of been unfettered bonds might ex- and in Parker be whose will had It be noted that rely; pected (2) an or- Allied was not to original conditional to collect under the dinary agency, collection but instead was Parker and agreements between sales type equipment as of and dealer Land-Air, as was to which were agree- such was familiar with contractual by It will also the lower court. found beyond ranging scope ments well the ac- to collect noted that he was directed collection; only further (3) mere The evidently count or settle it. was by done contact with Parker was during employment difficulties involved Land-Air; supervision without further same transaction. At the the time of this as (4) and The use such broad terms currently corporation, time Allied was a the wit- “settle” “referred back” dealings magnitude, engaged of this description ar- of the ness Land-Air’s dealt. Land-Air was familiar and had Allied. rangements Land-Air and evidence, Under of the this state agency may be It is settled that lower court could well have found that proved by showing of facts which to exist any Land-Air had further at- abandoned implication of such a raise contract. tempts to collect from Parker and that “ * ** susceptible proof as It is negotiations make whatever Allied chose to may other fact and be established with Parker would be little concern circumstances, as from such jeopardize could not what parties lation of the to each other already considered a lost cause. While subject-matter, their and con- acts reassigned not been ” * * Brown, supra, duct. Little v. Allied, plain it is from evidence 40 Ariz. at 11 P.2d at 613 looking to Allied alone payment; expected get presented The trial court found facts Allied either to on the agency power question ex some did resume to make previously held, kind ist. As we fact settlement which Allied we, payments individuals, might This shown have taken itself. view, contrary Jackson, re as set forth does not authorize a Also, judgment. above. of a it is to noted versal Standard Oil Co. Shields, 116; testimony quoted Calif. v. after Allied went de- 119 P.2d Estes, law, Ariz. sadly Richfield Oil Co. v. matter of unwise judicial policy. P.2d 851. as a matter of lays majority great emphasis The on clearly The facts show following statement: However, law to collect. power appel- principles is well that the collect does “Under settled established give agent authority procedure, late trial we must affirm the any part or to of a debt. In the court if can view release 'we reasonable case, only the instant had not of the evidence facts deduce therefrom which, power collect, but, according any theory law, to the tes ” timony, he had sustain the judgment.’ (Emphasis to settle. add- ed.) word “settle” could be to have construed meanings. But can be little different there wholeheartedly With this statement question something but what added agree. However, depart ma- from the question collect. then jority they in what conclude is a reasonable whether evidence which showed interpretation evidence. undisputed power there collect *5 holds that transaction power turning and a to settle with the over Allied, Parker, between and Nationwide of Land- account to who thereby extinguishing constitutes a novation representative and Air’s own licensed who obligation Parker’s to Land-Air. order equip had original made the sale of attach, however, for this result to first is Parker, ment or settle to for collection necessary to that power show Allied had the coupled testimony with of the ment — to binding enter into a novation Land- on manager credit that after the first Jackson majority Air. The concludes that Allied with contacts made power by had this agency virtue re- other direct contacts for no some fourteen lationship with Land-Air. months, only and that Land-Air to looked agent An is one who has the to payment, support Allied for is to sufficient act Valley on behalf another. National finding a that the trial court Milmoe, Bank v. 248 agent authority was an to authority may (1952). 740 His ex- or agree novate contract. We with the press hand, implied ap- on the one trial court the evidence sufficient. is parent on Aetna the other. Loan Co. disregard To is hold all of otherwise Sales, Apache Ariz.App. 322, Trailer 1 402 except author P.2d 580 It (1965). is evident ity to collect. majority implied authority relies on as a Appeals The decision of the Court is concluding basis for that Allied had vacated; Superior of the power to effect a novation.1 affirmed. Testimony manager of Land-Air’s credit supports, perhaps, a LOCKWOOD, conclusion that Allied STRUCKMEYER and authority given express

JJ., to “collect” concur. money owing from Parker. It must BERNSTEIN, stressed, however, (dissent- authority Chief “col- Justice ing). expressly impliedly grants lect” neither nor agent authority to an to novate. regret that I cannot concur with “ * * * majority, Authority decision for I believe their not to collect does wholly authority decision in this compromise, case is unsound as include Implied agency, majority ‘implied’ simply as the uses the means that have term, following express proof has been defined in the authorization but think “ ‘ * ** Implied agency finding appearances manner: is warx-ant way actual and the authorized difference in some ’ ” ** mainly express agency Agen- Mechem, it and one of Law of [act] * * * px-oof.’ 1952). cy, (4th method of word [T]he ed. § ” * * * functions, your part the debt one chief lease say, Restatement, Agency Com- should is to see that Second receiv- § paid, ables are not (a). ments ? Clause “A That’s correct. Rather, col- money “Q customary And in this is doing not acceptance of lection is limited to the periodically Haynes Pe- review accounts and legal tender due. especially those accounts on which Turlington, 261 N.C. troleum v. (cid:127) payments have not been made? (1964). S.E.2d “A It is. , the evidence us examine Let. n majority relies “Q customary And is it con- not also upon reaching their when payments en- not been made clusion that Allied had up follow contacts with ter into a novation. ? debtors points the fact First .' “settle”, There is a differentiation between power to given the Allied was up follow of an accounts receivable effectuate that this indicates up assigned follow of an argue the con- con- I do not a novation. period im- tract. After certain power to settle tention that time novate, contract where I cannot but power to plies the brought letter or power to two has Allied was agree that results is then referred back to any legal of the word. sense settle dealer. “settle”, cross exam- appears word manager and credit Land-Air’s ination of *6 you “Q expect And the dealer to make clear makes in which it is used context you? collection meaning. intended me, “A Not he either it or collects Direct examination: settles the account in order to avoid having repurchase equip- his to request Allied Medical you “Q ever Did ment or contract. the Plaintiff collections to make contracts ? on Parker these from Dr. “Q it He collects the account or settles going

so that he’s not to to have * * rebuy you? * it back from to simple thing not a “A It’s you tell some- do not answer because right. “A That’s a collection. body go and effect to things you But he did “Q while way. put in a different You [it] were the owner of the account? say. you You that’s not what And specific; you Let me be in this case see, to they indebted us were reassign did to not this contract through We the contract. recourse Medical, you? did charged their account No, practice rule way that ex- “A it’s not the as a in this I and was it, immediately reassign to then that unless plained to them you’d going Dr. back and forth. payment from ceived account tion it would be our interests. Hí would be or take whatever necessary necessary [*] to [*] charge legal protect [*] ac- “Q You went back to the going to settle the Allied Medical and told (sic) go either collect back on them account or dealer who you on this them were Cross examination: recourse, right is that ? “A That’s correct. sup- manager Now, “Q as the credit ****** see, pose function your chief negotiations terest whatever Allied made Re-direct examination: with him. kept “Q there record Is

you told Allied to settle ac- conclusions, opinion, my are These count ? totally unwarranted the evidence. Land- swayed attempts get Air don’t word never recall ‘settle’ their usually Parker to make on his conditional was used because ‘settle’ Indeed, obligation. they sales contract had means to to some kind lower come agreement corresponded oc- figure. at with Parker on numerous a lower they demanding pay- This I casions resume can’t recall. I do recall he only It ments. were asked to contact doctor after became clear get paying they getting him back no- on his were something get pay they schedule him where Parker that Al- contacted they lied added.) them (Emphasis on his account.” informed had better collect the amount due from Parker face testimony It is evident from this that the the responsibility being liable themselves word “settle” used obligation. their recourse It is obvious sense. It was not meant either as a that the reason Land-Air not contact did compromise adjust dispute. or to See during ques- the fourteen months Empire v. Goldbard State Mut. Life Ins. they tion was because had failed to obtain Co., 5 A.D.2d (1958); N.Y.S.2d previous results from their contact Stockwell, Toombs 131 Mich. say with him. But to this indicates (1902). Obviously N.W. 288 “seeming unconcern” is absurd. Land-Air they indicates Allied had been told that releasing intention Parker from get delinquent best payments obligation. Clearly yet this was not straightened out or else Land-Air would be cause”, “lost describes impelled to right exercise its of recourse. it, for right Land-Air still had a of recourse appeared It at point one ex- cross hardly Allied. presumed It can amination and was used at no other time. to be practice reasonable grant business important, height But is the more one’s folly give Land-Air would to believe that *7 debt for less than what due is when the authority the agent himself is for liable the entire debt. per- account when Land-Air had a addition, majority lists a number In fectly right good against recourse Allied. which, conclude, they could of other factors circumstances, Under it cannot be support the trial court to have been used proof reasonably concluded that there was finding a novation. gave a sense, settle in as and a conse- majority Park- The indicates since quence, properly this be cannot previous dealings er had when finding for a basis that Allied was yet Land-Air, agent not was authority. novation a good a for this would have been reason majority rep- rely subsequent The this relies court also Parker to Allied’s on heavily the fact that Land-Air made no Parker had resentations. But of course contact for than with Parker more four- dealt when it was not with Allied agent teen months after had been Allied had been Allied, x-ray original equipment. “referred back” to and that this seller of represents Moreover, a on the part knowledge decision of Land- Air original to look to Allied conditional sales contract had been Furthermore, blind, Parker account. court He was not Land-Air. action, presumes Land-Air, by majority this In- would us believe. defed, attempts repre- abandoned further to collect how he rely on Allied’s consistently consequently and had no in- when Land-Air had sentations 8 Finally, argu- pay majority restates its

attempted to him his debt? As supervise Al- Ariz. Nygren, ment that failed said Brutinel 1045-1046, dealings I have L.R.A. lied in its with Parker. 154 P. 1918F, already stated that the reason Land-Air (1916): prior did not contact Parker because its dealing with “The mere fact that one had been fruit- communications with him agent, agency general whether the duty Indeed, imposes majority less. signal, and special, danger should be everything principal investigate on the crossing duty like suggests railroad Unfortunately, agent this would does. ‘stop, look, listen,’ if he Agency create chaos in business world. principal would bind to as- is bound him- guard useless if must certain, not only agency, the fact of every self at moment the misdeeds but the nature and extent the authori- agent. of his ty, and in case either is controverted I cannot am the evidence convinced that proof upon

burden of him to establish reasonably support the find- trial court’s fine, it. In he care must due exercise ing that into Allied had to enter authority premisés.” caution in (Empha- a novation. added.) sis Appeals de- vacate the Court of emphasizes that majority also cision, Ariz.App. 395, (1966) P.2d 967 agency, but ordinary collection was not and reverse the trial court. equipment. x-ray Conse- dealer in familiarity various quently, Allied had UDALL, (dissenting): Justice col- types agreements than mere other has concluded of the Court simply what fail see lection contracts. by the con- that Land-Air should be bound determining the relevance factor has purportedly tract which Allied Medical factor implied agency. This existence of negotiated Land-Air. With in behalf of concluding that im- cannot be basis for concur; with re- result I cannot thus plied the most For exists. one gret from that de- I have elected to dissent precepts is that an basic law termination. agent cannot in himself create this matter Parker maintains principal. bind his acting Allied Medical as an “ moreover, may authority, agent’s ‘The through Land-Air and the exercise that he merely proving shown of this effect- incident Allied had person can more A agent. acted ed a novation which released him from acts his own make himself obligation pay orig- Land-Air under the ** own declara- than he can *8 inal conditional contracts. In order sales ” Litchfield v. tions or statements.’ however, attached, for this result to have 509, 511, Green, it is first necessary that Allied Medical (1934). to enter a into nova- hand, if On the other tion binding plaintiff. on the Park- conclude that utilizing factor to First I possible will sources turn to reasonably repre- rely er on Allied’s necessary to validate act dealer, as because of its status sentations agent. Authority may be of an actual First, equally unsound. the rationale is by or real as nature when is manifested above, Parker had notice of as noted by oral or written (express) statements Second, important, assignment. and more Second, (implied). Restatement, conduct dealing person is on the burden Agency Also, apparent authority may 7.§ and extent agent an to ascertain nature empower agent an legal to affect the rela- authority. principal tions of a respect of his to a third person by by done accordance with manager acts word the credit was not intend- principal’s power such manifestations of ed as a consent a debt or no- person agent to such third that such shall vate a contract. Restatement, Second, act agent. as his by given The intent instruction Agency Finally liability prin- 8. § manager Land-Air’s credit cipal person may upon to a third be based thereby that if the Medical was informed agent power arising fact that the had a straightened delinquent payments were relationship policy —that right out Land-Air would exercise requires agent should have the against recourse Allied Medical. Under power Restatement, the principal. bind circumstances, these be reason- cannot Second, Agency 140. § ably there sufficient concluded In the principal respon- addition becomes proof plaintiff gave Medical Allied sible for contracts him one made argued to settle in the sense purporting to act on his if the defendant, consequence, and as a transaction had been authorized if with testimony properly cannot serve as a knowledge princi- material facts the finding basis Medical was pal Restatement, ratifies such action. Sec- given authority. novation Thus am com- ond, Agency Also, though 143. § pelled to conclude that ex- there apparent does not have press authority to action validate the principal bind his particular in a transac- Allied purporting represent tion, the transaction may nevertheless sub- Land-Air. ject the principal liability to the loss offered was no evidence Further there of his interests where mis- authority to arise which allows actual leads or person; fails undeceive a third evidence contrary the implication. To the principal transaction; benefits from the this na- any prior dealings of did not show or the subject matter negotiable is a instru- any other whereby Medical or ture ment which been negotiated. has Restate- authority to novate party had been ment, Second, Agency § was un- a contract. addition Land-Air In submitting The defense contends that in and hence negotiations aware of Medical, problem this collection to Allied by its inaction could not have consented expressly Allied Med- authorized Medi- failing Parker of Allied to warn Thusly argued ical to “settle”. authority. there was Finally limited cal’s empowered Allied Medical was to cancel relationship nothing about original contracts sale lease- Mr. Hare to Land-Air Medical or agreement back Nation- authority. justifies inference of wide Leasing. Further directed to we are fact, who had to Parker was obvious testimony officer assignment of acknowledged notice of the wherein the term “settle” was used and this to Land-Air sales contracts conditional alleged it is determines that Allied Medical of recourse with the reservation fully was a agent empowered to authorized Medical, position Allied Med- effect a agree novation. do not with the attempting to itself party ical was that of defense contention. Even the *9 liability Thus while to Land-Air. avoid which the referred does not bear the that actual au- I am mindful of rule the out express defendant’s contention that by impli- may proven thority arise and be authority involved was here. I feel the cation, proof feel that such au- I do not record authority shows that no actual of an Canyon thority in given this case. express can nature be found to have existed 70, Hooks, 243 v. 74 Ariz. State Canners

in For this case. the it is evident from 1023; testimony Storage Distribut- P.2d Arizona & word “settle” was not legal 232, used in ing 293 P. Rynning, sense. The use of this Ariz. Co. v. 37 10

16; 475; 73, Am.Jur.2d, Agency, p. support finding against Land- dence to § 99, Agency p. 1227. of these bases and since Air on § C.J.S. to discuss them I majority has chosen not agency au inherent There is of course . remaining my to the also limit attention relationship arises from the which (thority issues. require that policy because considerations Having of authori- considered issue should , agent circumstances an under such ty independent power and novate as an Re principal. to bind . concluding, was not au- such this statement, Agency, 140. However § apparently, expressly, impliedly, thorized not only when to policy be invoked shpuld estoppel inherently nor ratification or authority case would such a recognize scope question I next turn to the of the persons. Further be to mislead third authority granted. of the person that a third recognized Court has . a du knowingly dealing agent an has plaintiff’s with credit man- scope ty ager the source supports to ascertain Med- conclusion either agency authority and that should express authority to given ical was “collect” burden of such issue be money controverted the defendant. Au- owing from per third “collect”, fall on the establishing thority however, will same does not ex- Barnett, Ariz. pressly give son. Bank of v. impliedly agent America an or authori- 296; Memorial Restatement, ty Second, Agen- 348 P.2d Lois Grunow to novate. 238; Davis, cy Rather, v. 49 Ariz. authority agent 72. § (Clinic 491, 154 P. Nygren, acceptance Brutinel v. collection is limited to L.R.A.1918F, in or Therefore money or tender that due. and the “settle” find that the term der to strictly con- agent’s powers An are to be justify a determina here conduct involved strued, allow the authorized exercise inherent au tion that powers expressly as are such thority that Parker acted must find reasonably required perform those are prudent man aware reasonable given. .party Thus a third who deals with agent, Lois dealing Grunow he is agent un- and knows Davis, supra. Here Memorial Clinic scope duty of the der a to ascertain person new with a Parker dealt —with beyond agency. if acts Hence dealt, person pur never said whom he party cannot authority actual the third party represent porting a third —with showing that look to absent a dealt. Yet party Parker had never principal’s as to conduct such mis- validity ascertaining Parker without party apparent lead third or to confer scope agent’s alleged authority. Having previously dismissed a contract with such negotiated thereof apparent authority estoppel issues purported to relieve agent which inapplicable I act- would hold n responsibility rent in of all but dealing ed at his own risk with an reducing the equipment while volved . who exceeded his and thus must seventy per some amount due personally bear the loss incurred. I conclude facts in case cent. From the that, agree and I states requisite meet did not that Parker may proved to exist a show- “agency he im of conduct and standard implication of ing which raise the of facts scope prudent failing ascertain the agency may be That so such contract.” authority and that of Allied Medical’s But the reci- proven law. is basic evidence peril at his own Parker acted therefore ipso rule facto tation of such does dealing Mr. Hare. Allied Medical’s at hand. the issue that rule determinative of po- the adverse contrary because authority, To apparent issues toAs *10 occupied, Land-Air which sition to estoppel liability based and ratification find conclusion an unwarranted seems evi- was no there that state I will merely authority by corpora- that to novate could arise im- that Land-Air is an out-of-state plication. tion, Allied, that needed time to contact Parker, that Allied had to contact that dur- facts majority cites opinion of The ing period began this in- to have de- supporting trial court’s allegedly problems ternal that majority resulted in its dissolu- states termination. Thus its choosing act in Allied “to necessary tion and that Land-Air it was for Land-Air behalf, very party whom with chose upheaval wait out Allied’s internal in who— n dealt, previously had Parker order to Par- ascertain its own status with Parker — n with during previous dealings delay apparently ker. This what em- of by any bonds had been unfettered ployed justify the majority concluding in Parker agency, and in whose that, rely.” expected to this I must might be To “ * * * the lower court could well have recently reply that Hare suc- Mr. found Land-Air abandoned Allied; position with ceeded to attempts further from Parker collect prior alleged he the time novation negotiations and that whatever Parker; dealings had had with ob- chose to with would Parker be of viously by bonds Allied had been unfettered little concern to itas could not dealings, at agency in its initial for such jeopardize already what was considered itself; contracting only time Allied for a lost cause.” person knowingly finally, that deal- was, ing agent, with an has the as Parker interpretation But this case seems duty ascertaining scope of that altogether unjustified. For Parker’s debt authority. agent’s majority further was far being a lost cause. Land-Air ordinary states that Allied not an col- immediately have sued which lection but familiar dealer was action it later resorted to or it could have agreements beyond ranging mere col- reassigned the involved contracts to Allied However, lection. I cannot that an see Medical and received the amounts thus due agent’s knowledge types of contractual from Allied Medical. Thus too seems agreements any way justifies an infer- position an extreme to find that Land-Air thereby ence intended would have empowered should have to enter receive in its behalf less than a third of agreements. majority into such con- by renegotiating, what was due when it based Land- clusion is on the simple been a matter for Land- manager employing Air’s credit the word Air to have difficulty avoided the describing “settle” in his instructions the use of its recourse feel Allied Medical. I result Allied. majority opinion compels applica- A final issue with which choose to deal lawyer’s tion of definition for a common- is the assertion Parker that the Court ly-used obviously word in the face of an Appeals determining this matter dis- contrary intent. regarded prior decision this compelled I am to take note that much directly point which was directly weight given by seems to contrary opinion to the Court’s on which to the fact that after its unsuccessful col- petition review is considered. letter, attempts by lection position Parker cites as for his Brown, made no ferred his matter to Allied and case of Little v. period

further contact with Parker relied cited on and majority opinion. in the of fourteen That no contact with months. With defense contention that was made this case substantiates period position beg determinative does not to me seem to differ. In that case assignor assignment, It should considered involved issue. made for collec- *11 assignor without the knowl- acted Subsequent to Here his son. purposes, tion from, assignee. edge of, or assignor, the real assignment Further, presented facts were herein dispute compromised party in interest implied can be from which Fur- compensation therefor. and received circum- knowledge, discussion consented to novation. aspect of

ther assignee assignor and ties between the settle- knowledge, close discussion of stance of in find- justify the Court present here to were such as ment and inaction are tacitly assignee consented ing acknowledged that the the real and bind compromise. assignor’s the claim. owner of are, affirm these reasons I would parties For instant case the Appeals which judgment effect, positions of the Court reversed from case, the trial court here reversed parties in the Little v. Brown defense. interest. assignee party the real

Case Details

Case Name: Land-Air, Inc. v. Parker
Court Name: Arizona Supreme Court
Date Published: Dec 15, 1967
Citation: 435 P.2d 838
Docket Number: 8927-PR
Court Abbreviation: Ariz.
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