Western Surety Co. v. La Cumbre Office Partners
Annotate this CaseWestern filed suit against La Cumbre for breach of an indemnity agreement where Mark J. Melchiori signed the agreement on La Cumbre's behalf as a managing member. In actuality, he was the managing member of La Cumbre's manager, MIC. MIC did not have actual authority to execute the indemnity agreement on La Cumbre's behalf. The trial court granted summary judgment for Western. The court concluded that Melchiori's signature binds La Cumbre pursuant to former Corporations Code section 17157, subdivision (d) (now section 17703.01, subdivision (d)), provided that the other party to the agreement does not have actual knowledge of the person's lack of authority to execute the agreement on behalf of La Cumbre. Accordingly, the court affirmed the judgment.
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