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Krause v. Reyelts6/5/2002
he is not bound by it. Krauses argue that a husband's execution of a release is not, in and of itself, binding on a wife.
[ ] Reyelts does not dispute that Kathy did not intend to release Reyelts. Instead, Reyelts claims that Kathy is bound by Wayne's release because Wayne had actual or ostensible authority to bind Kathy.
[ ] The trial court did not specifically rule on this issue. The trial court's decision dismissing Kathy's claims because of the release did, however, necessarily determine this issue by implication. Because this case must be remanded, we provide some guidance on the issue.
[ ] We note that "a marital relationship alone does not constitute a husband an agent of his wife." Bauer v. Graner, 266 NW2d 88, 95 (ND 1978). In general, "one who is not a party to a contract is not bound by the contract, and this general rule has been applied to hold that one spouse's signature on a contract does not bind a nonsigning spouse." Poarch v. Alfa Mut. Ins. Co., 799 So2d 949, 955 (AlaCivApp 2000).
[ ] Although Reyelts argues that Wayne had actual or ostensible authority to bind Kathy, the determination of that question generally is a question of fact for the jury. Bruins v. Anderson, 73 SD 620, 627, 47 NW2d 493, 496 (1951). We therefore decline to accept Reyelts's argument that Kathy is bound, as a matter of law, by her husband's execution of the release. The trial court should resolve this issue of fact on remand.
CONCLUSION
[ ] By operation of law, Wayne released Reyelts for all vicarious liability claims arising from Geidel's work. As a result, Wayne may only sue Reyelts for those defects that did not arise out of Geidel's work. The trial court must resolve the factual issues concerning the cause of the current defects. Factual issues also exist regarding Wayne's authority to bind Kathy on the release. Kathy may maintain her action against Reyelts on all claims unless she was bound by the release. If Kathy is bound by the release, she may only sue Reyelts for those defects that did not arise out of Geidel's work.
[ ] Affirmed in part, reversed in part, and remanded.
[ ] GILBERTSON, Chief Justice, and SABERS, AMUNDSON, and KONENKAMP, Justices, concur.
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