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TAYLOR v. RAMSAY-GERDING CONSTRUCTION CO.

(CC 015188; CA A127434; SC S055609).

196 P.3d 532 (2008)

345 Or. 403

H.H. TAYLOR, C.A. Taylor, Petitioners on Review, and Taylor & Taylor, Inc., an Oregon corporation, Cross-Respondent, v. RAMSAY-GERDING CONSTRUCTION COMPANY, an Oregon corporation, Defendant, and Chemrex, Inc., a foreign corporation, Respondent on Review. Ramsay-Gerding Construction Company, an Oregon corporation, Third-Party Plaintiff, v. TFC Enterprises, Inc., an Oregon corporation, dba Finishers Drywall; Chemrex, Inc., a foreign corporation; Century West Engineering Corporation, an Oregon corporation; Wyatt Architects and Associates, P.S.; and Donald Trail, Third-Party Defendants.

Supreme Court of Oregon, En Banc.

Decided November 6, 2008.

Attorney(s) appearing for the Case

James N. Westwood, Portland, Stoel Rives LLP, Portland, argued the cause and filed the briefs for petitioners on review H.H. Taylor and C.A. Taylor. With him on the briefs was David Hilgemann, Salem.

Todd S. Baran, Portland, Todd S. Baran PC, Portland, argued the cause and filed the briefs for respondent on review ChemRex, Inc.

Ralph C. Spooner, Salem, Spooner Much & Ammann PC, Salem, argued the cause and filed the briefs for amicus curiae Ramsay-Gerding Construction Company.

BALMER, J.

This breach of warranty action requires us to determine when an agent has apparent authority to bind a principal under Oregon law. Apparent authority arises when actions of a principal cause a third party reasonably to believe that an agent has authority to act for the principal on some particular matter. While constructing a hotel, plaintiffs became concerned about the possibility that their new stucco system...

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