26. Tort Liability of Agents and Principals

MC Tips

1. Independent contractors are not in a master-servant relationship with their clients, so there is no tort liability. 2. The ability to control the schedule of an employee, even if it varies, is the key element in determining whether something is a master-servant relationship. 3. Even when conduct violates the law or goes beyond the authority of the agent, the principal can be held liable for the failure to supervise. 4. Principals are held liable for the actions of agents' intentional torts, unless the agents are acting entirely for personal motives.

Case #1: Agent's Tort is Authorized by Principal

Both principal and agent are liable

Case #2: Agent's Tort from lack of qualifications

Both principal and agent are liable

Case #3: Agent's Tort from Principal's Failure to Screen (background check)

Both principal and agent are liable

Case #4: Agent's Tort from Principal's Negligent Supervision (of agent)

Both principal and agent are liable

Case #5: Agent's Tort during scope of employment

Main thing that matters is whether you are an employee or an independent contractor - Principals have much more control over employees than independent contractors Vicarious Liability: - Principals are responsible for employee's tort, even if it is accidental - As long as it is within the scope of employment (doing work for your principal that you have been instructed to do)

Issue: When do we hold the principal liable in addition to the agent's liability when there is tort in play?

Note: Agents/individuals are ALWAYS responsible for their own tort (they can't be relieved of that responsibility ever)

Case #6: Agent's Tort Outside the Scope of Employment

if you are doing things outside the scope of your work, the agent is fully liable and the principal is NOT liable - only the agent is responsible to the 3rd party