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Montana Reservoir Irrigation Co. v. Utah Junk Co.

228 P. 201 (1924)

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Montana Reservoir Irrigation Co. v. Utah Junk Co.

Utah Supreme Court
228 P. 201 (1924)

RW

Facts

Montana Power Company occasionally sold scrap metal to Utah Junk Company (defendant). A man named Aaron Rosenblatt handled these transactions on Utah Junk’s behalf. The same individuals served as officers of Montana Power and its subsidiary, Montana Reservoir Irrigation Company (Montana Reservoir) (plaintiff). Thus, even though Montana Reservoir itself had never done business with Utah Junk, Montana Reservoir’s officers were aware of the principal-agent relationship between Utah Junk and Rosenblatt. Utah Junk did not notify its suppliers when it terminated its relationship with Rosenblatt. Subsequently, Montana Reservoir sold scrap metal to Rosenblatt in the belief that he still represented Utah Junk. When Utah Junk refused payment, Montana Reservoir sued. Utah Junk appealed the trial court’s judgment for Montana Reservoir to the Utah Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Gideon, J.)

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