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Case Citations [1] (April 2023 - August 2023)

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                                 THE   AMERICAN
                                 LAW INSTITUTE



                                       Spring 2023 Citations



                                    AGENCY 2D



Generally

C.A.8, 2022. Cit. generally in sup. After a worker was injured in an iron ore mine and the Secretary of
Labor obtained civil penalties against mine operator for, among other things, recklessly disregarding
mandatory  maintenance standards in violation of a federal statute, this court denied operator's petition
for review. In making its decision, the court found that the Secretary of Labor's definition of
recklessness, which was adopted from Restatement Second of Torts § 500, was reasonable and aligned
with the purpose of the statute, noting that federal courts had previously looked to other sections of the
Restatement Second, including the Restatement Second of Agency, the Restatement Second of
Contracts, and the Restatement Second of Trusts. Northshore Mining Company v. Secretary of Labor,
46 F.4th 718, 731.

C.A.10, 2022. Cit. generally in case cit. in sup. Insurance agent sued insurance companies, alleging that
defendants, who hired plaintiff to sell defendants' insurance policies, terminated the parties' agency
agreement  on the basis of plaintiff's race. The district court granted defendants' motion for summary
judgment. This court reversed and remanded, holding, inter alia, that the district court erred in finding
that a racially discriminatory statement made by plaintiff's supervisor during an investigation related to
plaintiff's work performance was inadmissible hearsay. The court observed that, under the principles of
common-law   agency set forth by the Restatement Second of Agency, supervisor was defendants' agent
for the purpose of federal hearsay-exception rules, because supervisor acted on behalf of defendants'
regional offices and stated the racial slur pursuant to an investigation undertaken at the direction of
defendants' regional manager. Cruz v. Farmers Insurance Exchange, 42 F.4th 1205, 1212.

M.D.Fla.2022.  Cit. generally in sup. Business owner who discovered that his employee had opened a
credit-card account using his name and personal identifying information and used the account to steal
money  from him and the business for over three years sued issuer of the credit card, seeking a refund of
payments  made on the account. This court granted summary judgment for issuer, holding that owner
was responsible for the account, starting from a reasonable time after he received the first bank
statement showing payments  on the account and including the remaining balance on the account. The
court cited the Restatement Second of Agency in reasoning that owner's negligence in failing to review
the employee's work, his bank statements, or his credit reports for more than three years clothed the
employee  with apparent authority to use and pay for the account. Johnson v. Chase Bankcard Services,
Inc., 582 F.Supp.3d 1230, 1239.



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           For earlier citations, see the Appendices, Supplements, or Pocket Parts, if any, that correspond to the subject matter under examination.

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