Daniel v. Butler Lumber Co.

Court: Supreme Court of North Carolina; April 19, 1961; North Carolina; State Supreme Court

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Plaintiff attempted to establish a contract with the defendant based solely on testimony regarding statements made by John P. Forneau, a former employee of the defendant. The court excluded this testimony, upholding the defendant’s objections, as it is well established that an agent's authority cannot be demonstrated through extra-judicial statements. Forneau did not testify, having left his position on or about April 7, 1956, and was absent from the trial. 

The defendant's current executives, J. T. Butler and Clyde R. Butler, testified that Forneau had no authority to purchase land or timber on behalf of the defendant and did not enter into any contract as alleged by the plaintiff. Additionally, the plaintiff failed to provide sufficient evidence to support a claim that Forneau was acting within the scope of his authority when he made the statements attributed to him. All negotiations related to the acquisition of the "Ball" and "Hall" tracts were conducted exclusively by the executives, with no involvement from the plaintiff or Forneau. The plaintiff admitted to not having any communication with the defendant's executives and learned of the purchases only after they were finalized.

The appeal focused on the excluded testimony and the judgment of involuntary nonsuit. It was concluded that the plaintiff's arguments regarding the competency of the testimony and the exceptions listed did not comply with procedural rules. The court affirmed the judgment of involuntary nonsuit, finding no merit in the plaintiff's case.