Dorrah v. Hill

Citations

• 73 Miss. 787

Syllabus

<p>1. Principal and Agent. Contract im, fraud of principal.</p> <p>An agent cannot bind his principal by a transaction effected without her knowledge, in which, to the knowledge of the other party, he employs her means intrusted to him for investment so as to procure the payment of a debt long’ due by such other person to himself, since he acts therein for himself as well as his principal.</p> <p>3. Same. Trust deed in famor of agent. Subrogation of pinmcipal. Case.</p> <p>P. sold land to H., and received in consideration his notes secured by a deed of trust on the land. P. loaned H. a small amount of money belonging to Mrs. G-., and took as security a deed of trust on his personalty. The purchase money notes given by H. were not paid at maturity, and only a small amount was paid P. to the credit of Mrs. G. P., as agent for investment, held money belonging’ to Mrs. J., appellant’s intestate, sufficient to cover H.’s indebtedness to himself and Mrs. G. He loaned this money to H., who made a note to Mrs. J., who was then living, and executed a deed of trust to secure the same on the land and personalty. The old notes to P. and Mrs. G. and the old deeds of trust were then released and destroyed. H. had knowledge that P. was acting as agent for Mrs. J., and that he was to retain her money in payment of the sums due to him and Mrs. G. The new note and trust deed remained in the hands of P. until his death, when they were delivered to appellant as Mrs. J.’s administrator, who, upon discovering that the wife of H. had not joined in the new trust deed so as to bar the homestead right, sought, by bill in equity, to have the original trust deed in favor of P. reinstated, and himself subrogated as Mrs. J.’s administrator to the rights of P. thereunder. Held, that P. could not act for both himself and Mrs. J., his principal, and that, since the transaction, made with H.’s knowledge of the fiduciary relation, was not binding on Mrs. J. or her estate, appellant should be subrogat