Title Guarantee & Trust Co. v. Levitt

Headnote

Pbtncipal and Agent—Liability of Agent—Disclosed .Agency.

Defendant applied to plaintiff for a loan to another on the latter’s property, and signed a third person’s name to the application at the instance of plaintiff, though it knew that the third person bad nothing to do with it; the application providing that the signer should pay for a search

of title. Plaintiff knew that defendant was acting in a representative . capacity. Held, that defendant was not liable for searching the title for the loan.

[Ed. Note.—For cases in point, see Cent. Dig. vol. 40, Principal and Agent,” §§ 579, 580.]

The action was to recover for services in searching a title for a loan. The defendant was a law student in the office of Reuben Stone, an attorney at law. He made application to the representative of the plaintiff for a loan to Gorsliom Freedman on the latter’s real property. The said representative knew, as he testifies, that it was not Stone’s matter, that he had nothing to do with it, but he nevertheless insisted that the defendant sign the application in Stone’s name. He testifies that he did this because the defendant was a clerk In Stone’s office. Such application contained an agreement that the signer of it, Stone, should pay for the making of the search. The defendant testifies that he told the plaintiff’s representative that he was asking for the loan for a firm of attorneys whom he named, and the said representative acknowledged on the stand that that might be so; he would not deny it.

• Appeal from Municipal Court of New York.

Action by the Title Guarantee & Trust Company against Abraham Levitt. From a judgment for plaintiff, defendant appeals. Reversed.