Litigation

Superior Court Denies SJ, Leaves For Jury Whether Agent Had Authority

By Morris James LLP

Jack J. Morris Assoc. v. Mispillion Street Partners, LLC, 2008 WL 3906755 (Del. Super. Ct. Aug. 26, 2008). 

This decision briefly reviews the three types of authority by which an agent may bind a principal: actual authority, implied authority, and apparent authority.  The principal was a limited liability company, which failed to pay the vendor it purportedly engaged to perform marketing services. 

The issue that arose on summary judgment was whether the purported agent, who was removed as the general manager of the LLC two days before signing on behalf of the entity, had authority to bind the entity. The court denied the vendor’s motion for summary judgment, holding that it was up to a jury to determine that question based on the factual circumstances.

Full post as published by Delaware Business Litigation Report on September 11, 2008 (boomark / email).