Epstein v. Corporacion Peruana de Vapores

325 F. Supp. 535 (1971)

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Epstein v. Corporacion Peruana de Vapores

United States District Court for the Southern District of New York
325 F. Supp. 535 (1971)

Facts

Alfred Parodi was a salesman employed by Stratford International Tobacco Company (Stratford) (plaintiff). Luis E. Saavedra was the captain of the S.S. Napo, a ship owned by Corporacion Peruana de Vapores (Peruana) (defendant). Saavedra entered into an agreement with Parodi to purchase approximately $13,000 worth of cigarettes and liquor, which was more than could conceivably have been consumed by the S.S. Napo’s crew. Peruana had neither authorized Saavedra to make the purchase nor sent, either directly or through its American agent, a purchase order to Stratford. Evidence suggested that Saavedra intended to transfer the excess amounts of cigarettes and liquor to other vessels in Peru. Parodi delivered the goods to the S.S. Napo at the port of New York, but Saavedra did not have enough cash to pay in full. Parodi extended approximately $7,000 worth of credit to cover the amount still due. Saavedra repeatedly failed to repay the outstanding balance. Stratford then sent an invoice to Peruana. Peruana refused to pay, claiming that Saavedra did not have the authority to make the purchase on its behalf. Stratford sued Peruana in district court to recover the unpaid balance on the sale.

Rule of Law

Issue

Holding and Reasoning (Croake, J.)

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