Samonset v. Mesnager

Citations

• 108 Cal. 354
• 41 P. 337
• 1895 Cal. LEXIS 866

Syllabus

<p>Negligence—Gratuitous Agency to Loan Money—Investment Without Security — Liability oe Agent for Neglect.—A gratuitous agent for the lending of the money of his principal is bound to exercise good faith and ordinary diligence, and to act with a sound discretion in investing it; and it is not a sound discretion to invest it on the mere personal security of the person to whom it is lent; and, if he so lent it, and neglected to collect the money for the principal when he might have done so, because he feared that if he attempted to collect it the debtor would he crippled and rendered unable to pay a debt owed to himself and his partner, until the debtor became bankrupt, he is guilty of gross negligence in the management of the money intrusted to him and is liable for its loss.</p> <p>Id,—Contributory Negligence of Principal—Absence from State— Want of Knowledge__Where the principal, after intrusting the money to the agent for investment, went to France and there remained without knowledge of the mismanagement of his money by the agent until a short time before the action was commenced, he is not guilty of contributory negligence.</p> <p>Id.—Lost Letter—Oral Proof of Contents.—The contents of a letter addressed by the principal to his brother, directing him to go to the agent and demand the payment of the money, and, unless paid, to commence an action to recover the same, upon proof of loss and diligent search therefor without ability to find it, may be proved by parol evidence in an action against the agent to recover the money.</p>