White v. Thomas

1991 Lexis 109 (Ark. App. 1991)

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Nature of the Case

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Facts

D had employed Betty Simpson on a part-time basis for nearly two years. In December 1988, D instructed Simpson to attend a land auction and bid, in his behalf, up to $250,000.00 on an entire 220-acre farm, except for the three acres on which a house sat. D signed a blank check for her to use in depositing the required ten percent of the bid. Simpson was given no other instructions, and D left for a trip to Europe before the sale was held. P also attended the auction and were the successful bidders on the three-acre tract on which the residence was located. They unsuccessfully bid on acreage adjoining the homesite. The 217-acre balance of the land was struck off and sold to Ms. Simpson for $327,500.00. Simpson realized her mistake and approached Ps about purchasing from her some of the lands surrounding their house. She signed the agreement with the auctioneer to purchase the 217-acre tract. She then entered into an offer and acceptance with Ps in which she agreed forty-five acres of the land that she had just purchased for D. The contract was signed by Ps and by 'Betty Simpson, POA, Power of Attorney for Brad White.' D returned and was upset when he learned what happened. Ms. Simpson to D that Ps wanted to buy part of the property. D immediately repudiated Ms. Simpson's action in signing the offer and acceptance, and so informed Ps. Ps then began this action seeking specific performance of the contract and release of the land embraced in the contract from the mortgage used to consummate the transaction with the auction house. D and Simpson both denied that Simpson was expressly authorized to enter into a contract of sale and Ps do not contend otherwise. P testified that 'at one point in time, before the offer and acceptance, I asked Ms. Simpson whether she had the authority or something, and she said was the power of attorney. The court found that Ms. Simpson had informed appellees that she had a power of attorney granting her the authority she had exercised and that Ps had relied on Ms. Simpson's representations as to her authority. D was estopped from disaffirming her action, and the bank was ordered to release its mortgage lien on a portion of the land that Ps were purchasing. D appealed.