First National Bank v. Council Bluffs City Water Works Co.
New York Supreme Court
Appeal from a judgment'on report of referee. Action by First National Bank of Middletown, N. Y., against Council Bluffs City Water-Works Company on two promissory notes alleged to have been made by defendant, and to have been negotiated to plaintiff for value, before maturity. The notes were signed “Council Bluffs City WaterWorks Co. Harvey Allen, Treasurer.” Defendant denied the authority of Aliento make the notes. There was judgment for plaintiff, and defendant appeals.
1Opinion of the CourtPratt, J.
It is plain that a gross fraud has been perpetrated upon the defendant in this case, and the main question is whether the company has so acted as to be estopped from denying the validity of the notes sued upon in this action. The general principle that the officers of a corporation are special agents, and have only the authority conferred on them by the by-laws, and that all persons who deal with them are bound to take notice of the extent of their authority, is too well settled to require comment or citation of authorities. The notes in suit were never made under any authority of the by-laws…
2Cases cited1 opinion
- Claflin v. Farmers' & Citizens' Bank of Long IslandNew York Court of Appeals · 1862
3Cited by4 opinions
- In re New York & W. Water Co.District Court, S.D. New York · 1900
- Smith v. SmithAppellate Division of the Supreme Court of the State of New York · 1904
- Martin v. St. Aloysius ChurchSupreme Court of Rhode Island · 1915
- Perry v. Council Bluffs City Waterworks Co.New York Supreme Court · 1893