Federal Crop Insurance Corp. v. Merrill

The Federal Crop Insurance Corporation (plaintiff) had a published regulation excluding reseeded wheat crops from coverage. Merrill (defendant) applied for insurance through the Bonneville County Agricultural Conservation Committee, acting as the Corporation's agent, and the Committee mistakenly told him his entire reseeded crop could be insured, even though Merrill had no independent knowledge of the regulation. After drought destroyed Merrill's crop, the Corporation denied his claim because the crop was reseeded. The trial court and the Idaho Supreme Court both ruled for Merrill, reasoning the Committee's assurance bound the Corporation as its agent.