Karl Rove & Co. v. Thornburgh

In 1991 Richard Thornburgh (defendant) ran to become a United States senator for Pennsylvania. Murray Dickman, Thornburgh’s aide, hired Karl Rove & Company (Rove & Company) (plaintiff) to provide direct-mail fundraising services to the campaign. Dickman was Thornburgh’s spokesman and had been in control of Thornburgh’s previous campaigns. In September, Rove & Company entered into a contract with the Thornburgh for Senate Committee (the Committee). Dickman’s name was on the contract as the representative of the Committee. Thornburgh was not aware of the specifics of the contract, but he did know that direct-mail fundraising services had been arranged. The Committee failed to pay Rove & Company approximately $170,000 for services performed under the contract. Rove & Company filed a lawsuit against the Committee and Thornburgh in federal district court, alleging that the Committee and Thornburgh had breached the contract and committed fraud and theft of services. The district court held that the Committee and Thornburgh were jointly and severally liable to Rove & Company for the debt accrued under the contract. The district court reasoned that Thornburgh was in control of his campaign and the actions of the Committee, and that he could therefore be held personally liable. Thornburgh appealed, arguing that he did not authorize the contract between the Committee and Rove & Company and could not be held personally liable for the debt.