99 N.Y.S. 686 | N.Y. App. Div. | 1906
o This ease comes before the court on exceptions ordered to be here heard in the first instance. The defendants are bankers and brokers doing business in the city of Mew York under the name of Lazard Freres. For many years prior to the month of April, 1905, it had in its employ as a clerk, one Krumnow, whose duties were to attend to the posting of books of account relating to business between the firm and its foreign correspondents. • Tie was not authorized to buy
Immediately following each transaction between plaintiff and Krumuow he sent to her on the printed letterheads of the defendants a statement as to the purchases made, which purported to be signed in the name of the defendants, and her purchases were marked “ Paid ” by means of a rubber stamp used in the cashier’s department. He also, from time to time, sent her statements purporting to be accounts current, on printed forms of the firm, stating the condition of her account. These accounts and statements, it is claimed, were all forgeries. They were all in the handwriting of Krumuow, and there was nothing on the books of the firm indicating that any such accounts or statements had ever been sent out, and he never was authorized by the firm to issue any statements or accounts to the plaintiff or any other customer.
In the latter part of March or first of April, 1905, plaintiff’s husband informed Krumuow that he was going to Germany, and would like to have some of his'wife’s money that had been delivered to the" defendants for the jmrchase of stock and he would come to the office at a time stated and get a letter of credit. Krumuow answered : “ All right, I will have it ready for yon as soon as you come, so that all you need to do is to sign it, and that is all.” The plaintiff’s husband thereafter went to the office of the defendants, asked for his letter of credit, and was then informed that neither he nor his wife had any account on defendants’ books. He then asked for Krumuow, and it turned out he was not in the office. This interview led to the discovery of the fraud perpetrated upon the plaintiff. A few days later Krumnow conveyed the equity in a- house which he owned to the plaintiff, and a day or so thereafter he suddenly died, whether by his own hand or not does not clearly appear. Subsequently plaintiff brought this action to recover from the
Defendant, by its answer, denied any liability. At the conclusion of the trial the defendants’ counsel moved for the direction of a verdict, which was denied, and an exception taken. Plaintiff’s counsel then moved for the direction of a verdict, but before the same was decided defendants’ counsel asked to go to the jury upon certain questions of fact. This request was denied, exception taken, and the court thereupon directed a verdict for the plaintiff for the full amount claimed, to which, as appears from the order denying a motion for a new trial, an exception was taken, which was ordered to be heard in the first instance by the Appellate Division.
I am of the opinion that the exception to the denial of defendants’ request to go to the jury was well taken. . Krumnow was in the employ of the defendants as a bookkeeper, and there was no evidence that he was authorized'to do any work except such as was immediately connected with or incident to that, which did not. include the buying or selling of stocks or bonds or the transaction of business with customers in relation to such matters. The defendants were bound by the acts of Krumnow in so far as they had given him authority or the appearance of authority. The general rule is that a principal is not only bound by the acts of his agent which are within the scope of his authority, but also by such acts as justify a party dealing with him in believing that the principal has given him authority to do them. (Walsh v. Hartford Fire Ins. Co., 73 N. Y. 5; Edwards v. Dooley, 120 id. 540; Hanover Bank v. American Dock & Trust Co., 148 id. 612.)
Here, as already indicated, there was no evidence that Krumnow was specifically authorized to deal with the plaintiff. There was some evidence that the defendants had given him the appearance of authority, and whether it was sufficient to justify the plaintiff in dealing with him to believe that he had actual authority, was a question for the jury. It certainly was not of such a character as justified the court in holding, as a matter of law, that the plaintiff had a right to rely upon his apparent authority and by reason thereof the defendants were bound by his acts. The transactions took place in the defendants’ office, during business hours; the
It follows that the exceptions are sustained and a new trial ordered, with costs to defendants to abide event.
O’Brien, P. J., Ingraham and Houghton, JJ., concurred; Patterson, J., concurred in. result.
Exceptions sustained and new trial ordered, costs to defendants to abide event. Settle order on notice.