Kara Sears
Agency law is a fundamental concept in legal systems worldwide, underpinning various relationships, including employment, sales, and business structures. It involves appointing another party to act on one's behalf for a specific purpose. When disputes arise, understanding the nuances of agency law is crucial for a successful case outcome. This includes recognizing the two types of agency relationships: actual (express or implied) and apparent. Additionally, the specific dictates of due process and the ability to seek judicial review when harmed by agency action are important considerations. Furthermore, when suing a government agency, one must navigate specific rules and procedures, including filing deadlines and the option to pursue internal complaint-review boards.
| Characteristics | Values |
|---|---|
| Suing a government agency | File a claim for damages (not in Small Claims Court) |
| Suing a government employee | State law may allow a claim or lawsuit if injury or damage to property occurred |
| Suing the federal government | File an administrative claim within a special deadline |
| Agency relationship | Must be proven and can be actual (express or implied) or apparent |
| Agency determination | Must be accepted if it has a reasonable basis in law |
| Agency removal | The President may not be restricted in their ability to remove a principal officer |
| Agency policy | A new policy must be permissible under statute and the agency must believe it to be better |
| Agency adjudication | Due process applies to informal adjudications |
| Agency review | A party may seek judicial review if harmed by an agency action |
| Agency denial | Must be in writing and sent by certified or registered mail |
| Agency settlement | Most cases settle during the administrative claim process |
| Suing a government agency in Small Claims Court | File a claim within a certain deadline |
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What You'll Learn
Understand the concept of 'agency' and its types
Agency law is a common law doctrine that controls the relationships between agents and principals. It is an area of commercial law that deals with a set of contractual, quasi-contractual, and non-contractual fiduciary relationships. In its simplest form, it is the act of appointing another to act on one's behalf for a specified purpose. This is inherent in every employment relationship, most sales relationships, and most organizations and business structures.
The law of agency separates and regulates the relationships between agents and principals (internal relationships) and agents and third parties with whom they deal on their principals' behalf (external relationships). A principal-agent relationship is created when the agent is given the authority to act on behalf of the principal. The agent is authorized to work under the control of the principal and negotiate on their behalf or bring them into contractual relationships with third parties. An agreement made by an agent is binding on the principal as long as the agreement was within the scope of the authority granted to the agent or reasonably perceived by a third party.
There are two types of agency: actual and apparent. Actual agency can be further divided into express and implied authority. Express authority refers to the agent's power to take any actions requested by the principal, as well as any actions inherently necessary to accomplish those requests. Implied authority refers to the agent's power to take any action that the principal's conduct indicates they should take. Apparent authority, also known as "usual authority," is a form of authority that deters fraud and other harms that may befall individuals dealing with agents. It is derived solely from the agency relationship and is often seen in partnerships and corporations, where partners and senior executives have the power to bind the other partners and the corporation, respectively.
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$232.23 $368
File a claim for damages within the deadline
When filing a claim for damages, it is important to adhere to the specified deadlines to ensure your claim remains valid. The deadlines for filing a claim vary depending on the nature of the claim and the jurisdiction.
In California, for instance, claims for death, injury to a person, damage to personal property, or damage to growing crops must be filed within six months of the incident. All other claims must be filed within one year. Similarly, in New York, the deadline to file a notice of claim is typically no later than 90 days after the claim arises. If you miss this deadline, your lawsuit may be subject to dismissal, but a court may grant you permission to file a late notice of claim under certain circumstances.
If you are filing a claim against the federal government under the FTCA (Federal Tort Claims Act), you must first file an administrative claim within the specified deadline. The government then has six months to rule on your administrative claim. If your claim is denied, you can file a lawsuit in court, but there is another short deadline for filing lawsuits that you must not miss.
When filing a claim, it is important to specify the exact amount of money you are requesting. Ask for a reasonable amount, as demanding an absurd sum may lead to your claim not being taken seriously. Additionally, be mindful that federal contractors are not considered federal employees under the FTCA, so if you were harmed by a contractor's employee, you cannot file an FTCA claim.
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Know the procedures and rules for suing a government agency
Suing a government agency is not the same as suing a private individual or business. There are special rules and procedures that must be followed. The Federal Tort Claims Act (FTCA) holds federal government agencies and employees accountable and allows citizens to sue the federal government in certain wrongful act and negligence claims. Here are the key procedures and rules to know when suing a government agency:
Filing an Administrative Claim
Before suing a government agency, you must first file an administrative claim. This claim must be filed within a specific deadline, usually six months from the date of injury or damage to personal property. The government will then have time to investigate and evaluate your claim. Most cases settle at this stage, but if your claim is denied or not settled, you can proceed to file a lawsuit.
Special Filing Deadline for Lawsuits
There is a short filing deadline for lawsuits against government agencies. If you miss this deadline, your claim will be dismissed, and you will lose the right to collect damages.
Specifying the Claim Amount
When filing your lawsuit, be sure to specify the exact amount of money you are claiming. It is important to be reasonable in your demand. Asking for an excessive amount may lead to your claim not being taken seriously.
Negotiating a Settlement
Even after filing a lawsuit, you will have opportunities to settle your claim. During the administrative claim process, you can negotiate an out-of-court settlement with the agency attorney. If your claim does not settle at this stage, you will have another chance to settle with a new team of attorneys from the U.S. Department of Justice (DoJ) after filing your lawsuit.
Small Claims Court
Federal government agencies cannot be sued in Small Claims Court. However, if your claim is against a state or local government agency, you may be able to file a small claims case within six months of your claim being denied.
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Prove the existence of an agency relationship
Proving the existence of an agency relationship is a fundamental aspect of agency law. Agency relationships are based on agreements where one person, the agent, is authorized to act on behalf of another, the principal. This relationship is governed by agency laws, which outline the boundaries and requirements for both parties.
To prove the existence of an agency relationship, it is essential to establish two key elements:
- Consent: Both the principal and the agent must mutually agree to the arrangement. This consent can be explicit, such as through a written or oral agreement, or it can be implied through their conduct and actions. For example, if a business owner (principal) asks a manager (agent) to negotiate a contract, and the manager agrees, consent is established.
- Control: The principal must have the right to control the agent's actions. This includes providing instructions, setting boundaries, and authorizing the agent to act on their behalf. The principal is ultimately responsible for the actions of the agent, and the agent's actions can legally bind the principal.
Additionally, it is important to consider the nature of the relationship and the conduct of the parties involved. This includes examining the intentions, expectations, and interactions between the principal and the agent.
There are several types of agency relationships, and understanding the specific type can help prove its existence:
- Express Agency: This occurs when the principal and agent explicitly express their intentions to enter into an agency relationship, either orally or in writing.
- Implied Agency: Implied agency is inferred from the conduct and actions of the principal and agent. It is circumstantially proved or evidenced by their behavior.
- Apparent Agency: Apparent agency arises when a third party reasonably believes that an agency relationship exists due to the acts or omissions of the principal. The principal's words or conduct lead a third party to assume the existence of an agency relationship.
- Agency by Necessity: This type of agency arises when one party makes a decision on behalf of another who is unable to do so. It occurs when it is practically impossible for the agent to communicate with the principal, and the decision is essential and in the principal's best interests.
- Agency by Estoppel: Agency by estoppel occurs when a person represents to a third party, either by words or conduct, that another person is their agent. The original person will be treated as the principal, and they cannot deny the existence of the agency if it would cause financial loss to the third party.
Proving the existence of an agency relationship is crucial in determining the rights, responsibilities, and duties of both the principal and the agent. It is important to note that the burden of proof falls on the person trying to benefit from the agency relationship. They must prove that the alleged agent was authorized by the principal and had the authority to perform the act in question.
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Understand the role of subagents and their liability
Understanding the role of subagents and their liability is crucial in agency law, especially in real estate transactions. A subagent is an individual appointed by an agent to carry out tasks that the agent has agreed to perform for their principal. Essentially, a subagent acts under the authority of the primary agent but may also have duties directly linked to the principal, depending on the context.
The liability of a subagent is contingent on the source of their authority and whether their appointment was authorised by the principal. If a subagent acts within the scope of their authorised duties, the principal may be held liable. However, if the subagent was appointed without the principal's consent, the principal is typically not liable for their actions. In the context of real estate, subagents owe duties to the seller, not the buyer, and buyers should seek their own representation to avoid conflicts of interest.
The distinction between subagents and other types of agents, such as co-agents and buyer's agents, is important. Co-agents work directly for the same principal, each with direct authority, whereas buyer's agents exclusively represent the buyer and owe them fiduciary duties. Subagents, on the other hand, are appointed by the original agent and may have indirect authority based on the principal's consent. This indirect authority can lead to dual agency risks and fiduciary conflicts, which have resulted in a decline in the use of subagents in some industries.
The liability of subagents can also be influenced by state laws and industry practices. For example, in real estate, if a subagent misrepresents a property to a buyer, the seller may still be held liable under vicarious liability doctrines. Conversely, if a subagent acts outside the scope of their authority, they may be personally liable for their actions. Additionally, many states require subagents to disclose their relationship with the seller in writing to avoid legal ambiguity and potential conflicts of interest.
It is worth noting that the term "sub-servant" is often used interchangeably with "sub-agent" in legal contexts. The liability for the actions of a sub-agent typically falls on the appointing agent, whereas the liability for a delegate's actions falls directly on the principal. This distinction highlights the importance of understanding the specific roles and relationships within agency law to determine liability effectively.
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Frequently asked questions
If your claim is denied, you can file a lawsuit in court. However, there is usually a very short deadline for filing a lawsuit, so act fast. If you are suing a city, county, district, or state, you will need to file a complaint against the governing entity before going to small claims court.
Federal government agencies cannot be sued in Small Claims Court. You must first file an administrative claim with the agency and wait for their response. If your claim is denied, you are allowed to file a lawsuit in federal court.
If you've been injured or your property was damaged by a state or local government employee, check your state's laws to see if you can file a claim or a lawsuit. Most states have special rules and procedures that must be followed, including short deadlines for filing.
