Johnson kept telling Pastier that his account was making money, and the monthly statement from E. F. Hutting did not indicate otherwise. The manager at E. F. Hutting was aware of Johnny’s activities but did nothing to prevent them. When Johnson left E. F. Hutting, Pastern’s account??which had been called the “laughingstock” of the office??had shrunk from $196,000 to $96,880. Pastier sued E. F. Hutting for damages. Issue Was Gilbert J Johnson acting within the scope of his employment?
Is E F Hutting liable for Gilbert J Johnny’s tortuous conduct? A principal and an agent are each personally liable for their own tortuous conduct. However the courts will hold a principal liable for the actions of its agent if the agent was acting within the scope of his or her authority. The court will examine the situation to see if:- (1) The act was one which the agent was hired to perform. (2)Did the act occur during the agent’s employment? (3) Was the act requested or authorized by the principal
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A principal has the duty to oversee the work of it agents. The principle of negligence will hold a principal accountable although they are not the one committing the act. Our text page 474 refers to frolic and detour as a situation in which the Agents does things to benefit themselves rather than the principal. In this situation the agent becomes personally liable. Johnson was gainfully employed by E F Hutting and was acting as an agent of the company. The fact that the manager knew about Johnny’s actions and did nothing.
This shows that the principal was negligent; this will not be hard to prove, the statements were not reflecting the loss of Johnny’s portfolio. E F Hutting may try to get out this suit by claiming he had no knowledge of what Johnson was doing. The portfolio suffered a tremendous loss and is one which should be detected easily because it an investment firm. The fact that management kept silent made them a party to the act The court should hold E F Hutting liable for the action of its agent Business Law By antiradar