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PENN INS v. IRVING TRUST CO.

145 A.D.2d 174 (1989)

William Penn Life Insurance Company of New York, Respondent, v. Irving Trust Company et al., Defendants and General Insurance Company of America, Appellant Irving Trust Company, Third-Party Plaintiff, v. Citibank, N. A., Third-Party Defendant

Appellate Division of the Supreme Court of the State of New York, First Department.

February 28, 1989

Attorney(s) appearing for the Case

Janis Ettinger of counsel (Curtis C. Mechling and Edward Tessler with her on the brief; Stroock & Stroock & Lavan, attorneys), for respondent.

Benjamin D. Lentz of counsel (Hart & Hume, attorneys), for appellant.

MURPHY, P. J., ASCH and KASSAL, JJ., concur with WALLACH, J.; KUPFERMAN, J., dissents in a separate opinion.

WALLACH, J.

"One who deals with an agent does so at his peril, and must make the necessary effort to discover the actual scope of authority" (Ford v Unity Hosp., 32 N.Y.2d 464, 472). Plaintiff relies on this comment by the Court of Appeals and other statements to like effect as justification for an action based on the theory that a third person who deals with an agent...

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