Dweck v. Nasser
2008 WL 2602169 (Del.Ch.2008)

Facts:
The case stems from a business dispute. Dweck’s attorney of record was William Wachtel, and Nasser’s was Kurt Heyman. However, Wachtel reached out to Amnon Shiboleth instead, Nasser’s close friend and long-time primary attorney. Shiboleth was the one who eventually agreed to the settlement.

Issue:
Did Shiboleth have the authority to enter into the settlement agreement on the defendant’s behalf, even though he was not the attorney of record?

Holding:
Yes.

Reasoning:
There are three separate sources of an agency relationship:

(1) Actual Authority: Expressly granted either orally or in writing.
(2) Implied Authority: Authority that the agent reasonably believes he has as a result of the principal’s actions.
(3) Apparent Authority: Power that the principal holds his agent out as possessing or permits him to exercise under such circumstances a to preclude denial of its existence.

Here, there was a mixture of each:

(1) Express: Nasser told Shiboleth that he could “talk in his name” and that he would “blindly” sign a settlement at their direction.

(2) Implied: Given Nasser’s actions, as well as his long-standing personal and business relationship with Shiboleth, it was reasonable for Shiboleth to assume he was authorized to settle the case.

(3) Apparent: Nasser’s statements to Dweck’s husband about never intending to read the agreement, and that he would sign when Shiboleth and Heyman told him to do so.