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40 Mo. App. 569

Sessions v. Block

Missouri Court of Appeals

Decided April 15, 1890

Missouri Court of Appeals · decided 1890-04-15

<p>Principal and Agent: election oe remedy. A person who enters into a contract with the agent of an undisclosed principal may, after the disclosure of the principal, proceed against either the principal or the agent under the contract, but not against both; and, if after such disclosure, he proceeds against one, though unsuccessfully, he cannot thereafter proceed against the other. Held, accordingly, that recovery of judgment against the agent in a suit instituted after the disclosure of the principal, though the plaintiff was unable to collect it, was a bar to a subsequent suit against the principal.</p>

Relies on Kingsley v. Davis · 20 Mo. App. 569 - Schepflin v. Dessar · Henry Ames Packing & Provision Co. v. Tucker

Good law ✅— No negative treatment on recordhow we know

Aeeirmed · Decided 1890-04-15

How this case has been cited

Cited by 11 later decisions — most recently July 1981

1 federal appellate · 10 state decisions

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Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

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Thompson, J.,

¶1delivered tne opinion of the court.

¶2The court sustained a demurrer to the plaintiff’s second amended petition, and he appeals to this court. The essential facts are that the plaintiff did work for the agent of an undisclosed principal; that, after discovering the principal, the plaintiff brought an action against both the agent and the principal; that, at the trial of this action, the court required him to elect whether he would proceed against the agent or the principal, and he thereupon elected to proceed against the agent; that a judgment was thereupon rendered in his favor against the agent; that he cannot collect his judgment by reason of the fact that the agent is insolvent; and that he, therefore, brings this action against the principal.

¶3We think that this demurrer was rightly sustained. The governing principle is, that a party who enters into a contract with the agent of an undisclosed principal, may, after the principal has been disclosed, proceed either against the agent or against the principal; but he cannot proceed against both, and if he proceeds against one, although unsuccessfully, he cannot thereafter proceed against the other. Priestly v. Fernie, 34 *572L. J. (Ex.) 172; Kendall v. Hamilton, 4 App. Cas. 514; Kingley v. Davis, 104 Mass. 179. Thus, if after the principal has been disclosed to him, he accepts in settlement the note of the agent, he thereby discharges the principal. Paige v. Stone, 10 Met. (Mass.) 160; s. c., 43 Am. Dec. 420; Henry Ames, etc., Co. v. Tucker, 8 Mo. App. 95; Schepflin v. Dessar, 20 Mo. App. 569. It is of course immaterial in what way the creditor makes his election, whether by taking the note of the agent or by suing the agent and recovering judgment. If he makes his election after knowledge of the liability of the principal, he must stand by it. “If he sues the agent and recovers judgment he cannot afterwards sue the principal, even though the judgment does not result in the satisfaction of the debt.” Lord Cairns, L. C., in Kendall v. Hamilton, supra. The reason of the rule was well stated by the same eminent judge: “If an action were brought and judgment recovered against the agent, he, the agent, would have a right of action for indemnity against his principal; while, if the principal were liable also to be sued, he would be vexed with a double'action.” Kendall v. Hamilton, supra.

¶4The rule thus appears to be not only well settled, but also to be founded on sound reasons. It is in no way disturbed, or even questioned, in this state by the decision in Middleton v. Railroad, 62 Mo. 579, as appellant’s counsel seem to suppose.

¶5. It is, of course, unfortunate that the plaintiff should lose his debt; but we cannot change the law to enable him to save it. His action against the agent and the principal jointly was unadvisably brought, and when the court put him to his election whether to proceed to judgment against the agent or the principal, if he was not prepared to elect for want of proper information as to the solvency of the parties, he should have taken a nonsuit.

¶6We must affirm the judgment. It is so ordered.

All the judges concur.
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