Story Case

A wreck occurred to a passenger train of the M. & O. R. R. Company, while the train was in the heart of a large forest. As a result, several people were severely injured, including the conductor of the train. The company had previously issued an order to the effect that none, except the conductor, should have the authority to employ a physician in an emergency. Nevertheless, in this case, the brakeman employed Dr. Otis Stevenson, in the name of the company, to minister to the injured. Stevenson was on this particular train. Later, when he demanded compensation, he was refused, on the ground that the brakeman had no authority to act. Should Stevenson be permitted to recover?

Ruling Court Case. Bartlett Vs. Sparkman, Volume 6 American State Reports, Page 35; Volume 95 Missouri Reports, Page 136;Volume 8 Southwestern Reports, Page 406

The wife of the defendant became suddenly ill one night; he sent his brother to the nearest village, fourteen miles, to get Dr. McCowan. His brother, being unable to get the doctor desired, went to Dr. Bartlett, who went out to the defendant's home. By the time Dr. Bartlett reached the defendant, the danger was over, and his services were not needed. Some time later, Dr. Bartlett presented a bill to the defendant for the visit, which he refused to pay, whereupon, this action was brought. It was contended by the defendant, that he was not liable, because his agent had completely transcended his authority in getting the one doctor, when he specifically instructed him to get another.

Justice Norton delivered the opinion.

True, the general rule is that a principal is never bound by a contract made in excess of, or without authority, but, in a case of emergency, such as this, the principal may be held if the agent acted reasonably and in good faith.

Ruling Law. Story Case Answer

Where an agent, without any authority whatsoever, or in excess of his actual and ostensible authority, purports to make a contract for another, obviously, the latter is under no liability on such a contract. It is sometimes said that, in case of extreme emergency, an agent may bind a principal by an unauthorized contract, if he acts reasonably and in good faith.

In the Story Case, the company would be liable for the services of the physician. The brakeman had the power to hire a physician in such a case of extreme necessity.