Opinion ID: 195790
Heading Depth: 3
Heading Rank: 1

Heading: The Proffered Testimony Regarding Justin Grace

Text: 28 Bates claims that the court erred by excluding testimony from Nykaza regarding funds he had received from Justin Grace. To support this contention, Bates argues that Nykaza testified that the first check he received from Bates was a loan in anticipation of his move to Connecticut and his temporary unemployment. To rebut the credibility of this testimony, Bates offered to prove that one month prior to Nykaza's solicitation of Bates for a loan, Nykaza had deposited into his own account a check in the amount of $21,000 from another client, Justin Grace, and that these funds were still available to Nykaza on June 13th. Therefore, Bates argues that because Nykaza did not need a loan from Bates on June 13, 1983, he had other purposes for her check, such as investment. 29 The court excluded this testimony because it determined that the evidence was irrelevant. We do not believe that the court abused its discretion in so finding. The central issue in this case was whether or not Nykaza had apparent authority from Shearson in his dealings with Bates. As we have previously stated, the focus in determining whether an agent has apparent authority from its principal is not on the conduct of the putative agent, but rather on the conduct of the principal. Commercial Assocs., 998 F.2d at 1099. Nykaza's testimony regarding Grace in no way related to conduct by Shearson. Nykaza's alleged diversion of Grace's funds occurred before he was employed by Shearson. Additionally, Grace was not a Shearson client. Moreover, Bates' overly speculative argument fails to have any tendency to show that Nykaza somehow had apparent authority to act on behalf of Shearson. 30