Lovett, Hart & Phipps Co. v. Sullivan

• Decision Date: 29 November 1905
• Citation: 189 Mass. 535,75 N.E. 738
• Parties: LOVETT, HART & PHIPPS CO. v. SULLIVAN.
• Court: United States State Supreme Judicial Court of Massachusetts Supreme Court

189 Mass. 535

75 N.E. 738

LOVETT, HART & PHIPPS CO. v. SULLIVAN.

Supreme Judicial Court of Massachusetts, Bristol.

November 29, 1905

COUNSEL

John A. Kerns and James M. Swift, for plaintiff.

John W Cummings, Chas. R. Cummings, and Chas. A. MacDonald, for defendant.

OPINION

LATHROP, J.

This is an action of contract upon a written guaranty, addressed to the plaintiff corporation, dated August 16, 1893, and reading as follows: 'Please deliver my son, George F. Sullivan such goods as he may order, from time to time, and I will guarantee payment for same. This agreement good until canceled by me in writing. The goods to be charged to George F. Sullivan.' This paper was signed, 'Jeremiah Sullivan, by John Sullivan.' At the trial in the superior court the judge directed a verdict for the defendant, and reported the case for our determination.

It appears from the testimony at the trial in the superior court that the guaranty in question was in the handwriting of one Phipps, the treasurer of the plaintiff corporation; that he gave it to an agent to have it signed; and that the agent returned it to him signed; that after the guaranty was signed the plaintiff had no oral or written communications with the defendant; and that the guaranty had not been canceled. The treasurer testified that he had not heard of any limitations or restrictions placed upon John Sullivan's authority to sign the guaranty for his father; that before the guaranty was signed George F. Sullivan had dealt with the plaintiff but no credit had been given him; that George F. Sullivan did a good deal of business with the plaintiff between August 26, 1893, and August 15, 1903, probably to an amount of $1,500 a year; that George F. Sullivan went into bankruptcy in the fall of 1903, and was then indebted to the plaintiff for goods sold in 1902 and 1903. It was admitted that George F. Sullivan was born in May, 1873, and was therefore a minor when the guaranty was signed. The only testimony introduced to show that John Sullivan was authorized to sign the defendant's name was that of John Sullivan, who was called by the plaintiff as a witness. He testified that the defendant authorized him to sign his (the defendant's) name to a guaranty, to last during the minority of his brother, George F. Sullivan, whereby the plaintiff would be guarantied payment by the defendant for all goods sold George F. Sullivan during his minority, and that, when he signed his father's name, he did it without reading the paper very carefully.

There is no evidence in the case to show that John Sullivan was the general agent of the defendant. So far as the evidence discloses, he was a special agent only, with limited authority; and the law is well settled in this commonwealth that a person dealing with a special agent is bound to inquire and ascertain the extent of his authority. Snow v....