Truck Crane Service Co. v. Barr-Nelson, Inc.

AMDAHL, Chief Justice.

Defendant Barr-Nelson, Inc. appeals from a decision holding it liable under a payment guarantee agreement signed by an employee, Victor Barr, without its knowledge and against its express denial of liability. We reverse, holding that the employee lacked apparent authority sufficient to bind the principal as a matter of law.

The respondent Truck Crane Service Co. supplied cranes for several job sites where Barr-Nelson was the general contractor. Barr-Nelson ordered these services directly in some instances, and the amount due under these orders is undisputed. However,…