JAMES D. BARTON v. LEYTE ASPHALT, GR No.

21237, 1924-03-22
Facts: Action was instituted in the Court of First Instance by James D. Barton, to recover of
the Leyte Asphalt & Mineral Oil Co., Ltd., as damages for breach of contract.
Said company appears to be the owner of the Lucio mine. William Anderson, as president
and general manager of the defendant company, addressed a letter Exhibit 8, to the plaintiff
Barton, authorizing the latter to sell the products of the Lucio mine in the Commonwealth of
Australia and New Zealand.
Plaintiff made transactions with Henry E. White, H. Hiwatari, Ludvigsen & McCurdy and
Frank B. Smith indicated on letters submitted as evidences Exhibits G, L, M, and W.
Issues: WON the orders contained in Exhibits G, L, M, and W are sufficient to support the
judgment rendered by the trial court.
Ruling: In Article 267 of the Code of Commerce, no agent shall purchase for himself or for
another that which he has been ordered to sell. The law has placed its ban upon a broker's
purchasing from his principal unless the latter with full knowledge of all the facts and
circumstances acquiesces in such course.
The ruling was erroneous; for supposing that the letter was within the privilege which
protects communications between attorney and client. It is admissible in evidence, and the
defendant will be absolved from the complaint