Wednesday, July 27, 2011

There is substantial authority in support of the "sole actor" doctrine which imputes knowledge of the dishonest agent to the principal

Munroe v. Harriman, 85 F.2d 493, 111 A.L.R. 657 (2nd Cir. 1936)  certiorari denied Harriman Nat. Bank & Trust Co. v. Munroe, 299 U.S. 601, 57 S.Ct. 194, 81 L.Ed. 443.

Restatement (Second) Agency, Sec. 282, sub. c (1958)

Restatement (Third) Agency, Sec. 5.04, Ill. 10, Reporter's Notes (2005) (citing Munroe)

Missouri agrees:

Newco Land Co. v. Martin, 358 Mo. 99, 213 S.W.2d 504, 515 (1948).