Principals' Liability for Torts

Question 1

Vicarious Liability

Answer 1

General - principal may be liable for the tortious acts of his agent

Requirements -

1. principal has suffiicent control over the agent’s conduct such that that the agency relationship is employer-employee and
2. the tort committed by the agent was committed while the agent was acting within the scope of employement

Control - principal who contrls or has the right to control the manner and means of the agent’s perfoormance of work is in the higher category of employer-employee status

Independent Contractor - principal not vicariously liable for tort of independed contractor

Exceptions:

1. task is inherently dangerous
2. principal was neglgient in hiring an incompetent independent contractor
3. principal retains control over certain activities and the tort occurs within those tasks

Scope of Employment - factors:

1. was agent acting with intent to benefit the princiap
2. was the agent’s conduct of the kind that the agent was hired to perform
3. did the tort occur on the job

Frolic = significant deviation from assigned path; Detour = de minimus deviation from an assigned path

Question 2

Intentional Torts

Answer 2

General - intentional torts not considered within scope of employment and therefore principal not liabile

Exceptions:

1. conduct occured with the general space and time limits of employement
2. agent was motivated in some part to benefit the principal
3. act is of a kind that the agent was hired to perform

Question 3

Fiduciary Duty

Answer 3

Three duties all agents owe principals, even if unpaid:

1. duty to exercise reasonble care
2. duty to obey reasonable instructions
3. duty of loyalty

Duty of Loyalty - agent cannot take or withhold business opportunities, cannot take in secret profits, and cannot compete directly with the principal