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Federal Crop Insurance Corp. v. Merrill

United States Supreme Court
332 U.S. 380 (1947)


Facts

The Federal Crop Insurance Corporation (defendant) was a government agency that insured wheat producers. The Corporation promulgated a regulation stating that the program did not cover reseeded crops. Merrill (plaintiff) applied for this insurance with the Bonneville County Agricultural Conservation Committee, which acted as the Corporation’s agent. Merrill was unaware of the regulation regarding reseeded crops. The Committee incorrectly told Merrill that Merrill’s entire unseeded crop could be insured. Drought destroyed Merrill’s crops. The Corporation refused to pay Merrill’s claim because the crop was reseeded. Merrill brought suit. The trial court found in favor of Merrill, and the Supreme Court of Idaho affirmed. The Idaho courts found that the Committee bound the Corporation as its agent. The United States Supreme Court granted certiorari.

Rule of Law

Issue

Holding and Reasoning (Frankfurter, J.)

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