The Federal Reporter (Annotated), Volume 171: Cases Argued and Determined in the Circuit Courts of Appeals and Circuit and District Courts of the United States. September-October, 1909. Page: 24
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S. . .,171 FEDERAL REPORTER.
No prinqipleis better settled than, as said in Dickerson v. Colgrove,
100 'U. S. 578, '25 L. td. 618:
"That he, who by his language or conduct leads another to do what he
would not otherwise have one, shall not subject such person to loss or injury
by disappointing the expectations upon which he acted."
This doctrine, while it originated in courts of equity, has often been
applied to cases arising in courts of law. Dickerson v. Colgrove, 100
U. S. 580, 25 L. Ed. 618; Kirk v. Hamilton, 102 U. S. 68, 26 L. Ed.
79.
If Hunt had himself telephoned to the defendant instead of ask-
ing the bank to do it, and received the answer which the bank re-
ceived and gave the assurance which the bank gave, there could be
no doubt, we take it, in the mind of any one, but that he would be
estopped from denying that the money was to be applied in payment
for cattle for immediate shipment, to the amount of the draft, and
that the defendant had the right to be reimbursed out of the proceeds
of the sale of the cattle shipped to it. Did the fact that he authorized
the bank to communicate with the defendant instead of doing it him-
self change his position or release him from the obligation to refund
this mopey? We think not. He handed the draft to the cashier of
the Exchange National Bank, informed him that he had sold his cattle,
and authorized the cashier to ascertain xvhether or not the draft would
be 'paid, and did not move further in the matter until he received the
report, of the cashier. We think it is safe to assume, in the absence
of any denial by him, and from the knowledge common to every one
as to the manner in which banks conduct their business to avoid per-
sonal liability, that the report of the cashier advised him fully of the
condition upon which the draft would be paid.
It has been often decided:
"That, where one holds another out to the world as his agent, in determin-
ing th6 liability of the principal the question is not what authority was
intended to be given to the agent, but what authority was a third person
dealing with him Justified, from the acts of the principal, in believing was
given to him." Griggs v. Seldon, 58 Vt. 561, 5 Atl. 504; Walsh v. Hartford
F. Ins. Co., 73 N. Y. 5; Dodge v. McDonnell, 14 Wis. 553; Webster v. Wray.
17 Neb. 579, 24 N. W. 207; Columbia Mill Co. v. National Bank of Commerce.
52 Minn. 224, 53 N. W. 1Q61; Lister v. Allen, 31 Md. 543, 100 Am. Dec. 78;
Carmichael v. Buck, 10 Rich. (S. C) 333, 70 Am. Dec. 226; Howell v. Graiuff,
25 Neb. 1830, 41 N. W. 142; Milne v. Klen, 44 N. J. Eq. 378, 14 Atl. 640; Stovall
v. Com., 84 Va. 246, 4 S. E. 379; Routh v. Agricultural Bank of Mississsippi, 12
Smed. & M. (Miss.) 161.
The only interest the defendant had in the cattle was either in
separate cattle amounting in value to $2,000, or in the total number
shipped to the extent of its special interest of $2,000, and we do not
think it can be said that it was obliged to separate the cattle when
the cattle were all demanded by the plaintiff before the replevin suit
was brought, because it was not known by the defendant in what way
the cattle had come, and the distinct understanding with the plaintiff
was that the draft for $2,000 was paid on condition that the cattle
would be shipped immediately for its protection in the payment of it.
We say "the distinct understanding with the plaintiff," because the
plaintiff authorized the cashier of the bank to speak for him and in-
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The Federal Reporter (Annotated), Volume 171: Cases Argued and Determined in the Circuit Courts of Appeals and Circuit and District Courts of the United States. September-October, 1909., legislative document, 1909; Saint Paul, Minnesota. (https://digital.library.unt.edu/ark:/67531/metadc38217/m1/36/: accessed April 19, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.