Tort Negligence Liability For Principals And Agents In California
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FAQ
Generally, hirers of independent contractors, called principals, are not liable for the negligent actions of those contractors. There are exceptions to the rule.
Independent contractors tend to have specialized skills or knowledge and work for many employers. Under tort law, employers who hire independent contractors usually have no vicarious liabilities to independent contractors' tortious acts.
This is especially true if the third party is made aware of the agent's authority limitations. In this situation, the third party may still attempt to sue the principal for any damages caused. However, the principal can then turn around and sue the agent to recover any damages caused.
Under the doctrine of respondeat superior, a principal is generally liable for acts by a servant within the scope of employment. A principal usually will not be held liable for acts of nonservant agents that cause physical damage, although he will be held liable for nonphysical torts, such as misrepresentation.
When an agent acts within the authority given to it by its principal, the principal is liable for the agent's actions. The principal will be held liable even if the specific act was not authorized by or known to the principal.
A principal will be vicariously liable for the tortious acts of her independent contractor if the independent contractor is engaged in inherently dangerous activities. In general, a principal will not be vicariously liable for tortious acts of an independent contractor.
The principal will be liable for the employee's torts in two circumstances: first, if the principal was directly responsible, as in hiring a person the principal knew or should have known was incompetent or dangerous; second, if the employee committed the tort in the scope of business for the principal.
An independent contractor clause specifies that the relationship between the parties involved is that of independent contracting rather than employment, meaning the contractor is responsible for their own taxes, benefits, and liability.
A tort claim is any act that can harm the well-being of a person, by that means violating their rights and making the guilty party liable for their damages and sufferings.
A person is always liable for her own torts, so an agent who commits a tort is liable; if the tort was in the scope of employment the principal is liable too. Unless the principal put the agent up to committing the tort, the agent will have to reimburse the principal.