In Oklahoma, when both parties are a principal and agent or employer and employee, and they are both sued, liability can arise when there is an issue as to the relationship or scope of authority or employment. Generally speaking, the principal or employer will be liable for any acts of the agent or employee that are within the scope of the relationship or employment. The types of Oklahoma principal and agent or employer and employee relationships that can lead to liability when both parties are sued include: • Agency: A relationship generally established by a contract where the principal gives an agent authority to act on their behalf. • Employment: A relationship between an employer and an employee, usually established by an employment contract, where the employer gives the employee tasks to perform and the employee is paid in return. • Partnership: A relationship between two or more people who have agreed to share profits and losses in a business venture. • Joint venture: A relationship between two or more people who have combined their resources and expertise to create a business venture. • Independent contractor: A relationship between an employer and an independent contractor, established by a contract, where the contractor is hired to perform specific tasks or jobs and is paid for their services.
Oklahoma PRINCIPAL AND AGENT OR EMPLOYER AND EMPLOYEE - BOTH PARTIES SUED- LIABILITY WHEN ISSUE AS TO RELATIONSHIP OR SCOPE OF AUTHORITY OR EMPLOYMENT
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The law further states that independent contractor status is evidenced if the worker: (1) has a substantial investment in the business other than personal services, (2) purports to be in business for himself or herself, (3) receives compensation by project rather than by time, (4) has control over the time and place
Pursuant to the doctrine of respondeat superior, an agent may create legal liability for the principal for actions taken by the agent within the scope of the agency. In such cases, the principal and agent are jointly and severally liable for the harm caused by the agents conduct.
General Exceptions Case law recognizes three exceptions to liability for independent contractors: Negligent selecting, instructing, or supervising: This exception goes to whether you adequately vetted and instructed an independent contractor.
(1) the employer retained control over the contractor's work; (2) the employer was in possession and control of premises; (3) a statute or rule imposes a specific duty on the employer; or (4) the contractor's work involved special risks or dangers.
Although an employer may be vicariously liable for an employee's misconduct, an employer is typically not vicariously liable for an independent contractor's misconduct.
What Is the Test for Knowing When a Defendant Is Vicariously Liable? The test for knowing when a defendant is vicariously liable is whether they had enough control over the other person's actions that it's fair to hold them legally responsible for that person's negligence.
Employer-employee relationships are the most common type of vicarious liability cases. If the act is done within the scope of employment, the employer is held liable for the employee's actions and misconduct. By overseeing the scope of employment, the employer has control over the people they hire.