181 Iowa 361 | Iowa | 1917
As before stated, the relation of plaintiffs and Martin Smith, during all of the time covered by the several transactions, was that of principal and agent. Steckel had un
At the time of this transaction, a suit was pending against defendant for possession of the farm, and all papers forming the subject of the alleged assignment were held by plaintiff as the agent of Smith, while the unrecorded deed was held by him as the agent of both Smith and Morain. It is an elementary principle of the law of agency that, in all matters touching the subject matter thereof, the agent must act in absolute and perfect good faith toward his principal. The relation between them is fiduciary in character, and the vital principle of it is good faith, without which the relation cannot exist. That an agent who deals with the
“Assuming the fiduciary relation resulting from the contract of agency, it is elementary law, not needing fortification by citation of authority, that an agent may not speculate off of his principal in the subject matter of his employment, that he may not place himself in a situation where self-interest impels him to overreach his principal, that he may not seize benefits with both hands, coming as well as going, and further, that a court of conscience, when a trust results from such wrongful conduct, will stretch forth its arm and strip him of all benefits acquired at the expense of his principal and which should inure to the principal’s advantage under the terms of the employment.”
See, also, as bearing upon the question of the duty and responsibility of the agent to the principal, Bergner v. Bergner, 219 Pa. St. 113; Eoff v. Irvine, 108 Mo. 378; People v. Township Board, 11 Mich. 222; Holmes v. Cathcart, (Minn.) 92 N. W. 956; Supreme Sitting of the Order of Iron Hall v. Baker, (Ind.) 20 L. R. A. 210; Mechem on Agency, Secs. 1188 to 1191, inclusive; American Mortgage Co. v. Williams, (Ark.) 145 S. W. 234. In the absence of evidence from which the contrary may necessarily be inferred, we may presume that plaintiff, as the agent of Smith, in assuming to procure a loan for him and in dealing with the papers of appellee in his possession, intended to account to his principal for whatever profits resulted therefrom. It is undoubtedly true that the principal may consent that the agent may deal with the property for his own benefit, and may waive any rights to profits accruing from transactions in relation thereto; but the situation in which the defendant was placed and the relation between the parties to this suit
There is no apparent reason why Smith should desire thus to deal with Steckel or consent that he be so dealt with. During all the time of the controversy, Steckel had been the confidant and agent of the defendant, as well as oí Morain. Smith, in agreeing to the alleged assignment, must have understood that he was to be at least so far benefited thereby as to receive compensation for the damages he claimed against Morain, and be placed in a position to complete the purchase of the land. There is no other way of reconciling the transaction and conduct of Steckel with the integrity and good faith required of an agent. He was a man of large business experience and capacity, whom Smith had constituted his agent and confidant, and was bound to deal with him with perfect fidelity. The transaction as above construed ivas wholly provident upon the part of Steckel. He stood to lose nothing. The payment of the notes was amply secured, while, upon appellant’s theory, the transaction from the viewpoint of appellees was wholly benevolent. There is some evidence of conduct and claims upon the part of Smith seemingly inconsistent with the
The court in its decree found that plaintiff was entitled to recover $1,625, the amount paid for the alleged assignment, with 7 per cent interest from March 12, 1914. This finding of the court was in accordance with familiar principles of equity, and does full justice between the parties.
III. There are some other small items about which there is some controversy, but they do not call for either a modification or a reversal of the decree and judgment of the trial court, and no good purpose would be served by discussing them in detail. The judgment of the lower court is — Affirmed.