ABSTRACT
When should companies be strictly liable for the torts of their rogue agents? In the twentieth century, the law seemed to be moving in the direction of holding corporations responsible whenever the rogue agent’s job facilitated the tort, even if the agent was acting without authority and not trying to serve the interests of the company. By contrast, the direction of the law in the twenty-first century has been toward requiring proof that the rogue agent was acting within the scope of an apparent authority to represent the company, the company itself knowingly fostered that appearance of authority and the tort was caused by an innocent third party’s reasonable reliance on the agent’s apparent authority. This Article argues that the evolution of the law reflects changing ideas about social equity, individual rights and the proper role of courts. The Article also argues that current doctrine shows how corporate vicarious liability today is not a species of strict enterprise liability but instead follows agency principles to hold corporations responsible for actions taken within the scope of their voluntarily expanded legal personalities.
Harris, Daniel, Corporate Responsibility for Rogue Agents (February 1, 2023), Notre Dame Journal of Law, Ethics and Public Policy, volume 37, no 1, 2023.
Leave a Reply