Gorton v. Doty
57 Idaho 792, 69 P.2d 136 (1937)
Rule of Law:
An agency relationship is created when one person manifests consent for another to act on their behalf and subject to their control, and the other consents to so act. This relationship does not require a formal contract or compensation, and can be established when an individual volunteers their property for a specific purpose and designates the person who is to operate it.
Facts:
- Richard Gorton was a student and member of the Soda Springs High School football team.
- Charlotte Doty was a teacher at the same high school.
- The football team needed transportation to an away game in Paris, Idaho, and coach Russell Garst was arranging for cars.
- The day before the game, Doty asked Garst if he had enough cars for the trip.
- Garst replied that he needed one more car.
- Doty volunteered her car for the team's use on the express condition that Garst must be the driver.
- Doty was not promised and did not receive any compensation for the use of her car, though the school district paid for the gasoline.
- While Garst was driving the team back from the game in Doty's car, an accident occurred which resulted in injuries to Richard Gorton.
Procedural Posture:
- R. S. Gorton, on behalf of his son Richard Gorton, commenced an action against Charlotte Doty in a state trial court.
- The jury returned a verdict in favor of Richard Gorton for $5,000.
- A judgment was entered upon the jury's verdict.
- Doty filed a motion for a new trial, which the trial court denied.
- Doty (appellant) appealed the judgment and the order denying a new trial to the Supreme Court of Idaho.
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Issue:
Does a principal-agent relationship exist when a car owner volunteers her vehicle for use in transporting a high school football team and makes its use conditional on the coach driving, even without compensation or a formal agreement?
Opinions:
Majority - Holden, J.
Yes, a principal-agent relationship exists under these circumstances. Agency is the relationship resulting from one person's consent for another to act on their behalf and subject to their control, and the other person's consent to so act. By volunteering her car for the purpose of transporting the team and making it a condition precedent that Garst drive, Doty manifested her consent for Garst to act on her behalf. Garst consented by driving the car. The court reasoned that neither a formal contract nor compensation is essential to create an agency relationship. Furthermore, the ownership of a vehicle establishes a prima facie case that the driver is acting as the owner's agent.
Dissenting - Budge, J.
No, a principal-agent relationship did not exist; the arrangement was merely a loan of the car, creating a gratuitous bailment. Agency involves more than passive permission; it requires a request, instruction, or command, which was absent here. Doty was not transacting business or managing an affair on her own behalf, but rather performing a 'kindly gesture' to help Garst and the school. The condition that Garst drive was a natural precaution, not an act of control sufficient to create agency. Therefore, Doty should not be held liable for the negligence of a borrower using the car for his own or the school district's purposes.
Analysis:
This decision expands the scope of vicarious liability by establishing that an agency relationship can be created informally and without compensation. It demonstrates that control, even as minimal as designating a specific driver for a specific trip, can be sufficient to manifest a principal-agent relationship. The ruling lowers the bar for establishing agency in non-commercial contexts, increasing the potential liability for owners who volunteer their vehicles for community, school, or charitable activities. Future cases will likely scrutinize the degree of control an owner exerts when lending a vehicle to determine if the arrangement is a mere bailment or an agency relationship.
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