Legal Opinion
William Penn Life Insurance v. Irving Trust Co.
Appellate Division of the Supreme Court of the State of New York
Decided February 28, 1989PublishedCited by 3 opinions
1Opinion of the Court
OPINION OF THE COURT
Wallach, J.
"One who deals with an agent does so at his peril, and must make the necessary effort to discover the actual scope of authority” (Ford v Unity Hosp., 32 NY2d 464, 472). Plaintiff relies on this comment by the Court of Appeals and other statements to like effect as justification for an action based on the theory that a third person who deals with an agent but fails to make reasonable inquiry into the agents authority becomes liable to the principal in tort for defalcations of the agent that could have been prevented had such an inquiry been made. The comment,…
Also in this document: Dissent.
2Cases cited5 opinions
- Ford v. Unity HospitalNew York Court of Appeals · 1973
- Hutzler v. Hertz Corp.New York Court of Appeals · 1976
- Schenck v. Bear, Stearns & Co.District Court, S.D. New York · 1979
- In re LesterNew York Supreme Court · 1976
- Strip Clean Floor Refinishing v. New York District Council No. 9 Brotherhood of PaintersDistrict Court, E.D. New York · 1971
3Cited by3 opinions
- Cory v. Nintendo of America, Inc.Appellate Division of the Supreme Court of the State of New York · 1993
- Dark Bay International, Ltd. v. Acquavella Galleries, Inc.Appellate Division of the Supreme Court of the State of New York · 2004
- Peoples Westchester Savings Bank v. GancDistrict Court, S.D. New York · 1989