Pioneer Neon Supply Co. v. Johnson & Johnson Construction Co.

Counsel for the plaintiff call our attention to Code § 37-113 which states: “When one of two innocent persons must suffer by the act of a third person, he who put it in the power of the' third person to inflict the injury shall bear the loss.” The defendant, under the contract with A. G. Penuel was holding approximately 10% of $116,000 to be paid to Penuel on January 1, 1954. The plaintiff loaned Penuel $8,000 on October 1, 1953, in reliance upon the written agreement hereinbefore set out, to make the 10% of $116,000 check payable to Penuel and the plaintiff jointly. From the record it…