Theard v. Gueringer

Citations

• 115 La. 242
• 38 So. 979
• 1905 La. LEXIS 651

Syllabus

<p>NOTES — TRANSEEB—BIGHTS OE PUB CHASER— AGENCY — APPARENT AUTHORITY.</p> <p>1; Plaintiff was the holder and owner of a promissory note for $2,600, bearing- interest, executed by.the maker to her own order, and indorsed by her in blank, and secured by special mortgage on the maker’s property. She left this note on deposit with a notary public, fearing it might be destroyed by fire at her own residence. The notary sold, transferred, and delivered the same before maturity, for $2,000, to a third person, mentioning at the time that “it came from the plaintiff”; that it had been reduced to $2,000 by partial payment of $600 upon it. The property mortgaged was sold by the owner, the purchaser depositing in court an amount sufficient to pay the note in principal and interest to the party entitled to the ownership of the note.</p> <p>Held, a person holding in his possession and under his control, before maturity, a promissory note made payable to the order of the maker, and indorsed by her, secured by special mortgage on the maker’s property, may be presumed, as between that person and the public, the owner of the same, or as agent with full power to dispose of it. If the party owning the note has intrusted it to an agent, he has created a trust by means of which fraud could be perpetrated. By placing the note in his hands he has held out to the world that they could trust him, and thrown upon himself the burden of loss when they have acted upon that inducement. Where a loss has to fall upon one of the innocent persons, he who has so acted as to occasion the loss must bear it.</p> <p>2, The purchaser having bought the note as one for $2,000, bearing interest, his rights must be limited accordingly, and the balance of the fund deposited must be paid to the plaintiff.</p> <p>(Syllabus by the Court.)</p>