Opinion ID: 1819644
Heading Depth: 2
Heading Rank: 1

Heading: Whether There Was a Contract Between Barnes and the Cappaert Estate.

Text: ¶ 7. Barnes argues that the chancellor erred in finding that there was no contract between him and the Estate. However, the judgment did find that there was a contract. The opinion stated that Boolos bound the executor to an agreement for services when he acted as an agent with apparent authority. ¶ 8. The Cappaert Estate, recognizing that the chancellor found that there was a contract, argues in its cross-appeal that Boolos was not an agent of the executor, BancorpSouth, and therefore did not have the authority to retain Barnes as counsel. The Estate argues that because the chancellor erred in finding that Boolos was BancorpSouth's agent, there was no contract, and Barnes could proceed only in quantum merit. ¶ 9. An agency relationship can be established through either actual or apparent authority. Certain Underwriters at Lloyd's of London v. Pettey, 770 So.2d 39, 45 (Miss.2000). The question of whether the evidence establishes apparent authority is ordinarily a question of fact for the fact finder. Ciba-Geigy Corp. v. Murphree, 653 So.2d 857, 872 (Miss.1994). While Boolos did not have express authority to act as an agent for the executor, the chancellor found that he acted with apparent authority, and thus bound BancorpSouth to an agreement for legal services. ¶ 10. Apparent authority exists when a reasonably prudent person, having knowledge of the nature and the usages of the business involved, would be justified in supposing, based on the character of the duties entrusted to the agent, that the agent has the power he is assumed to have. Eaton v. Porter, 645 So.2d 1323, 1325 (Miss.1994) (quoting Ford v. Lamar Life Ins. Co., 513 So.2d 880, 888 (Miss. 1987)). The three situations in which an agent has apparent authority to bind a principal are (1) acts or conduct by the principal indicating the agent's authority; (2) reasonable reliance by a third party upon those acts or conduct; and (3) detrimental change in position by the third party as a result of such reliance. Id. (citations omitted). ¶ 11. Regarding the first element, BancorpSouth, as executor of the estate, indicated that Boolos had the authority to retain legal services on its behalf because the bank made no objection to Barnes' representation until he was terminated. In other words, BancorpSouth ratified Boolos' conduct. Ratification is the affirmance by a person of a prior act which did not bind him but which was done or professedly done on his account, whereby the act, as to some or all persons, is given effect as if originally authorized by him. Autry v. State, 698 So.2d 84, 87 (Miss. 1997) (quoting Carter v. Hurst, 234 So.2d 616, 620 (Miss.1970)). Ratification may be established through affirmative acts or inaction. Id. In this case, Barnes provided the bank with statements every month, and BancorpSouth continued to allow Barnes to provide legal representation. Barnes also filed several petitions on behalf of BancorpSouth that were signed by the bank's trustee. [1] Thus, the chancellor was correct in finding that Barnes proved the first element required for apparent authority. ¶ 12. As for the second element, the chancellor found that Barnes reasonably relied on Boolos' actions when Boolos negotiated the contract. According to the testimony, Boolos had worked for the Cappaerts for many years and he always negotiated the terms of the family's legal representation. Therefore, Barnes had legitimate reasons to believe that Boolos could negotiate contracts on behalf of the Estate. ¶ 13. Finally, the chancellor found that Barnes suffered a detriment by performing several hours of legal work without compensation, and this Court agrees that this constituted a detrimental change in position. Id. ¶ 14. Because Barnes demonstrated that Boolos had apparent authority to act on behalf of the bank, the chancellor was correct in finding that there was a contract for legal services between Barnes and BancorpSouth.