Gleason v. Seaboard Air Line Ry. Co. - 278 U.S. 349 (1929)
U.S. Supreme Court
Gleason v. Seaboard Air Line Ry. Co., 278 U.S. 349 (1929)
Gleason v. Seaboard Air Line Railway Company
Argued November 22, 1928
Decided January 2, 1929
278 U.S. 349
1. The doctrine that a principal shall be held liable for the fraudulent representations of his agent made within the scope of the agent's authority is not subject to an exception exonerating the principal where the agent acts with the secret purpose to benefit only himself, and without the knowledge or consent of the principal. Friedlander v. Texas & Pacific Ry. Co., 130 U. S. 146, distinguished and in part overruled. P. 353.
2. Plaintiff paid a draft attached to an "order notify" bill of lading in reliance upon notice and assurance that the goods had arrived, given to him by an agent of the defendant railway company whose duty it was to give such notices of arrival. It turned out that the draft and bill had been forged by the agent himself, and by him negotiated for the purpose of defrauding the plaintiff to the agent's own advantage. Held that the railway company was liable for the deceit. P. 278 U. S. 353.
3. Section 22 of the Bills of Lading Act, enlarging the implied authority of agents to issue bills of lading, has no bearing on the present case. P. 278 U. S. 357.
21 F.2d 883 reversed.
Certiorari, 276 U.S. 612, to a judgment of the circuit court of appeals which reversed a judgment recovered by Gleason in the district court against the railway company in an action for deceit. The case had been removed from the state court on the ground of diversity of citizenship.