First Interstate Bank Of Texas v. First National Bank Of Jefferson

928 F.2d 153 (5th Cir. 1991)

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Nature of the Case

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Facts

First Interstate Bank of Texas (P) agreed to buy some bonds from the First National Bank of Jefferson (D). Boyd, a senior vice president at the Jefferson Bank, discussed the deal with the president of the Jefferson Bank. Boyd came away with the impression that he had the authority to seal the bond deal with the Ps. The deal was signed by Boyd. Boyd is a senior vice president at the bank. He did loans himself and supervised others at the bank. He had extensive authority there. Years later, the deal fell through and D's refused to repurchase bonds under the deal because the alleged that Boyd did not have the authority to execute the deal. P sues for enforcement of the contract.