European Import Co., Inc. v. Lone Star Co., Inc.

596 S.W.2d 287 (1980)

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European Import Co., Inc. v. Lone Star Co., Inc.

Texas Court of Civil Appeals
596 S.W.2d 287 (1980)

SC

Facts

Rose Marie Bagnoli (defendant) was the president of European Import Co. (defendant). Bagnoli hired Dr. William Blachman to help revive the struggling company. Internal disagreements arose between Bagnoli and Blachman over who had the authority to place orders for the company, including orders from Lone Star Co. (plaintiff). Blachman signed a contract with Lone Star promising that European would buy certain liquor and merchandise from Lone Star. Lone Star delivered the goods but never received payment. Lone Star sued European and Bagnoli to recover the price of the liquor and merchandise. Bagnoli claimed that she was unaware of the goods and that European should not be bound by Blachman’s contract. The trial court ruled in favor of Lone Star, finding that Blachman had authority to contract for European. The defendants appealed.

Rule of Law

Issue

Holding and Reasoning (Doyle, J.)

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