Opinion ID: 726669
Heading Depth: 2
Heading Rank: 3

Heading: Bomar's Agency Law Argument

Text: 34 Bomar argues that the district court's charge on agency erroneously permitted the jury to conclude that Jaross was Bomar's agent notwithstanding that Jaross's interest in purchasing the Brazilian Friendship himself was adverse to that of Bomar. 35 The district court instructed the jury as follows: 36 Plaintiffs claim that Bomar's interference with the contract was through its agent Jaross. Bomar claims that Jaross ceased acting as their agent on May 24, 1987. You must determine who acted as an agent for which principal, at what times. Again, the simple rule is this: Principals know everything their agents know, but agents do not know everything their principals know. 37 Just to complicate that issue a little, there is a theory called apparent authority, which you ought to know about. 38 If plaintiffs cannot demonstrate by a preponderance of the evidence that Jaross was an agent of Bomar after May 24, 1987, Bomar may still be liable if Jaross had apparent authority to act for Bomar. An agent has apparent authority when from the point of view of a third person the transaction appears regular on its face and the agent appears to be acting in the ordinary course of business confided to him or her. However, Bomar is not liable for Jaross'[s] actions outside his authority unless plaintiffs have proven that plaintiffs or Hydra reasonably relied upon Jaross'[s] acts based upon some misleading conduct by Bomar. 39 Bomar argues that the jury could find from the evidence at trial that Jaross had an interest adverse to Bomar and therefore did not act as Bomar's agent with respect to the purchase of the Brazilian Friendship, particularly after May 22, but that the charge was insufficient because the judge did not instruct the jury that Jaross's knowledge should not be imputed to Bomar if Jaross had such an adverse interest. Bomar notes that Jaross's testimony was contradictory: at different times, he claimed that he sought to purchase the vessel for himself, for AGR, for AGR's nominee, for Bomar, and for Pappas. Bomar also points to the fact that Jaross never claimed to receive any compensation from Bomar for his services allegedly rendered in connection with the purchase of the vessel. 40 We find that although the charge did not use the adverse interest language and would have been better if it had, it nevertheless permitted the jury to reach the conclusion sought by Bomar when it required, before apparent authority could be found, that the transaction appear regular on its face and that the agent appear[ ] to be acting in the ordinary course of business confided to him or her.Bomar also contends that the jury should have been instructed as to the status of Jaross/AGR as an independent contractor and that under New York law, employers generally are not liable for the torts of independent contractors. Bomar preserved its right to raise this issue on appeal because it had requested a jury instruction regarding Jaross's status as an independent contractor. Again, although the court erred in not giving the requested instruction, Bomar was not substantially prejudiced by the district judge's failure to give an independent contractor instruction in light of the instruction he did give. Accordingly, we affirm the district court's finding of Bomar's liability for tortious interference with contract. 41