To what extent are principals liable for the torts committed by agents?

An individual is always liable for her own conduct. Whenever an individual is held liable for the actions of another, this is known as vicarious liability. In the context of agency, the agent is acting vicariously for the principal. A principal is responsible for the tortious acts of an agent done within the Scope of Employment. This is pursuant to a doctrine known as "respondeat superior".

What is Respondeat Superior?

Pursuant to the doctrine of respondeat superior, an agent may create legal liability for the principal for actions taken by the agent within the scope of the agency. In such cases, the principal and agent are jointly and severally liable for the harm caused by the agents conduct. An act is within the scope of the agency if the purpose behind the action taken is to advance the interests of the principal. As such, if any act taken by an employee in an effort to advance the employers interest is a tort, the employer may be liable for that conduct.

• Note: Generally, intentional torts are generally not considered to be within the scope of an employees duties or employment. As such, a principal will not be liable for the intentional torts committed by an employee unless the principal ordered or condoned the tortious conduct. Even if a tort is within the scope of employment, it will not relieve the agent from personal liability for her actions.
• Example: I am an employee of a corporation. While carrying out my duties, I act negligently and harm a third party. The third party sues the corporation and me. The corporation will be liable for my negligent act because I was acting within the scope of my job responsibilities when I committed the tort.

Related Topics

• Agency Law (Intro)

• What is an Agency relationship?
• What are the types of agents?
• Employee vs. Independent Contractor
• What are the types of principals?
• What is required to form a principal-agent relationship?
• What are the duties of a principal?
• What are the duties of an agent?
• What is the authority of an Agent to Bind Business in Contract?
• When are Agents liable to principals and third parties?
• What is Respondeat Superior?
• What is a Frolic and Detour?
• When does the Agency Relationship Terminate?