Alexander has paid the judgment and brings a cause of action against Piedmont Electric Co. What may he recover? Explain.

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Alexander has paid the judgment and brings a cause of action against Piedmont Electric Co. What may he recover? Explain.

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Piedmont Electric Co. gave a list of delinquent accounts to Alexander, an employee, with instructions to discontinue electric service to delinquent customers. Among those listed was Todd Hatchery, which was then in the process of hatching chickens in a large, electrically heated incubator. Todd Hatchery told Alexander that it did not consider its account delinquent, but Alexander nevertheless cut the wires leading to the hatchery. Subsequently, Todd Hatchery recovered a judgment of $5,000 in an action brought against Alexander for the loss resulting from the interruption of the incubation process. Alexander has paid the judgment and brings a cause of action against Piedmont Electric Co. What may he recover? Explain.

Explanation & AnswerSolution by a verified expert

Explanation

Any agent who makes the payment on behalf of the principal to any third party has the right to claim the amount from the principal under the agency contract. Similarly, Individual A, being an agent to Company P, made the payment to Individual T, for which Company P was liable. So, Individual A can claim recovery of the full amount from Company P.

Verified Answer

Individual A, being an agent of Company P, has the right to recover the full amount that they have paid to Individual T, on behalf of Company P.

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