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Sauber v. Northland Insurance Co.

Minnesota Supreme Court

87 N.W.2d 591 (1958)

Relevant factsFree

Sauber (plaintiff) bought a car from his brother that was still covered by an existing Northland Insurance Co. (Northland) (defendant) policy, and Sauber called Northland to ask whether he could drive the car under that policy, with a female employee telling him he could. After the car was wrecked, Northland refused to pay, and Sauber sued; the jury found for Sauber, but Northland moved for judgment notwithstanding the verdict and, alternatively, a new trial, and the trial court denied the first motion but granted the second.

IssueFree

Whether an employee answering the phone for a company presumptively has apparent authority to bind that company when answering questions during that call.

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