Question

Agency is a legal term of art that refers to the relationship between a principal and an agent. An agency relationship is a fiduciary relationship, where one person (called the “principal”) allows an agent to act on his or her behalf. The agent is subject to the principal’s control and must consent to her instructions. Classic examples of agency relationships include employer/employee, lawyer/client, and corporation/officer.

All that is required to create an agency relationship is the manifestation of assent by both sides. This manifestation can be oral or in writing. Examples of written agency agreements include attorney retainer agreements. Agency relationships can also arise from circumstances even without explicit agreement. Whether an implied agency arose is a question of fact for a jury or judge to determine if the issue comes up a trial.

Question: Choose an existing lawsuit that involves an Agency Relationship, then summarize the case of the Agency Relationship and the outcome.

Answer 1

An existing lawsuit that involves an Agency Relationship is the case of Castillo v. Case Farms of Ohio.

Summary of the case: In this case migrant farm workers were recruited by America's Tempcorps in Texas for making them work in Case Farms of Ohio. Case Farms is a chicken processing plant. The migrant farm workers were given a bus ticket along with $20 for fooding for three days. The living conditions for these workers at the place of work were deplorable. The workers were made to stay in unfurnished rooms and these rooms were infested with cockroaches and rats. The issue at hand here was if (or not) America's Tempcorps (ATC) was an agent of Case Farms.

In this case ATC had the express authority from Case Farms to recruit and hire people to work at Case Farms’ Ohio plant. This express agency existed with the scope of recruiting and hiring migrant workers. The transportation activities and the housing of the migrant workers were within the agent’s implied authority.

It was thus established that a principal is liable for acts of agent based on actual agency relationship that is formed by either expressed or implied delegation of authority to the agent by the principal. The court held that America's Tempcorps (ATC) was an agent of Case Farms and hence Case Farms was liable for actions of ATC.