Mill Street Church of Christ v. Hogan PDF

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Case Brief and Notes for Business Organizations I...

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MILL STREET CHURCH OF CHRIST v. HOGAN 785 S.W.2d 263 (Ky. 1990) FACTS: Parties: Appellant: Mill Street Church of Christ Appellee: Sam Hogan Procedural History: 

Old board decided Hogan was not an employee of the church

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New board reversed stating Hogan was employee of the church

Relevant Facts: 

Church hired Bill Hogan to paint the church

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Bill Hogan painted most of the church himself but needed a helper to finish

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Bill Hogan discussed hiring a helper with the church, Hogan was not told to hire Petty, but no decision was made

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Bill Hogan hired his brother Sam

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Sam fell when ladder leg broke and he broke his arm

ISSUE: 

Whether Bill Hogan had authority to hire his brother o Express actual authority? o Implied actual authority? o Apparent authority?

PARTIES’ ARGUMENTS: Plaintiff:  Defendant:  DISPOSITION OF THE COURT:

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Affirmed

RULE OF LAW: 

Implied authority – actual authority circumstantially proven which the principal actually intended the agent to possess and includes such powers as are practically necessary to carry out the duties actually delegated

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Apparent authority – not actual authority but is the authority the agent is held out by the principal as possessing

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Agent must look at present or past conduct of the principal that the principal would wish him to act in a certain way or to have certain authority The existence of prior similar practices is one of the most important factors The person alleging agency has the burden of proof

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HOLDING: 

Bill Hogan had implied and apparent authority to hire Sam Hogan

COURT’S REASONING:    

Though the board had a discussion of other arrangements, Bill was never informed Discussion between Bill and elder indicated that Petty would be hard to reach and he could hire whomever he wished Sam believed Bill had the authority to hire him based on past practices Church paid Sam for his half hour of work...