ROBINSON, J.
The defendant
The following facts, as found by the trial court, and procedural history are relevant to the resolution of AAMCO's claims. The plaintiff purchased a 2002 GMC Savannah van (vehicle) in February, 2003. The plaintiff, at that time, also bought an extended warranty for the vehicle through Heritage Warranty Insurance Risk Retention Group, Inc. (Heritage). In December, 2007, the transmission in the vehicle failed, and the plaintiff brought the vehicle to Crowley Chevrolet to be repaired. Heritage would not pay Crowley Chevrolet's rates, so it had the vehicle transported to Drive Train in East Hartford, which was owned at that time by Gary Gross and
Alejandro Leone, a member of the plaintiff, received a letter from Gross, dated January 21, 2008, which stated: "You have failed to respond, as of this date, $25.00 per day storage applies. If we do not hear from you within 10 days, a mechanic['s] lien will be placed on your vehicle and it will be sold at auction." A few days later, Leone went to Drive Train to speak with Gross about the letter and to inform Gross that he was trying to work things out with Heritage.
Leone received another letter from Gross dated March 11, 2008. That letter stated: "To Whom it May Concern, Re: Abandoned GMC 2003 Savanna.... This vehicle is being auctioned." Leone then authorized Drive Train to repair the vehicle's transmission. In June, 2008, after not hearing from Drive Train, Leone went to check on the progress of the transmission work and was informed by Gross that the vehicle had been sold.
After the plaintiff left the vehicle with Drive Train, Gross added approximately nine hundred miles to the vehicle's mileage. In July, 2008, Gross drove the vehicle from East Hartford to Woodbridge on at least eight occasions to "loosen a knock in the engine." In response to a request for admission, Gross admitted that he used the vehicle for personal use.
The plaintiff filed an amended complaint in the present action on December 18, 2008,
A one day trial was held on October 26, 2010. The court concluded that Drive Train was an agent of AAMCO and that AAMCO was vicariously liable for Drive Train's actions. The court concluded that "Drive Train's torts occurred within the scope of AAMCO's employment of Drive Train and was done to further AAMCO's business." The court found that Drive Train had actual authority to act on AAMCO's behalf as "Drive Train's agreement with AAMCO was to pay 7 [percent] of revenue for advertising and other expenses and was authorized to use AAMCO's name. As a matter of fact, many of the exhibits from Drive Train have at the heading of the document the letterhead of AAMCO."
On appeal, AAMCO contends that the court erred in determining that Drive Train was its agent or had apparent authority to bind AAMCO for its actions. It is well settled that "[t]he nature and extent of an agent's authority is a question of fact for the trier where the evidence is conflicting or where there are several reasonable inferences which can be drawn [therefrom]. ... Accordingly, we review the court's findings with regard to agency and an agent's authority under the clearly erroneous standard." (Citations omitted; internal quotation marks omitted.) LeBlanc v. New England Raceway, LLC, 116 Conn.App. 267, 273-74, 976 A.2d 750 (2009).
"The burden of proving agency is on the party asserting its existence." Lee v. Duncan, 88 Conn.App. 319, 324, 870 A.2d 1, cert. denied, 274 Conn. 902, 876 A.2d 12 (2005). "Under § 1 of 1 Restatement (Second) of Agency (1958), [a]gency is defined as the fiduciary relationship which results from manifestation of consent by one person to another that the other shall act on his behalf and subject to his control, and consent by the other so to act.... Thus, the three elements required to show the existence of an agency relationship include: (1) a manifestation by the principal that the agent will act for him; (2) acceptance by the agent of the undertaking; and (3) an understanding between the parties that the principal will be in control of the undertaking." (Internal quotation marks omitted.) Hollister v. Thomas, 110 Conn.App. 692, 706, 955 A.2d 1212, cert. denied, 289 Conn. 956, 961 A.2d 419 (2008).
We begin with AAMCO's claim that the court erred in determining that Drive Train was its agent. AAMCO contends that the plaintiff failed to submit any evidence on the issue of AAMCO's control of Drive Train. Accordingly, AAMCO asserts that the plaintiff failed to prove that there was an agency relationship between Drive Train and AAMCO. We agree.
The plaintiff introduced no evidence that demonstrated that AAMCO controlled any part of the business of Drive Train. The only evidence presented that relates to the relationship between AAMCO and Drive Train is that Drive Train and AAMCO have an agreement, whereby, in exchange for the use of AAMCO's name, Drive Train pays approximately 7 percent of its sales to AAMCO for advertisements. The mere fact that there
The plaintiff asserts that AAMCO "failed to produce a purported representative to testify about the supposed franchise relationship. [The plaintiff also alleges that AAMCO] failed to produce any franchise agreement between [it] and Drive Train in discovery, and failed to introduce any evidence on this issue at trial."
We next determine whether the court erred in determining that Drive Train had apparent authority to act as AAMCO's agent. A party can be held liable to a third party if its actions caused a third party to believe that there was a principal and agent relationship between it and another. See Beckenstein v. Potter & Carrier, Inc., 191 Conn. 120, 140, 464 A.2d 6 (1983) (despite no principal and agent relationship court still needed to determine if there was apparent authority). "Apparent authority is derived not from the acts of the agent but from the deliberate or inadvertent acts of the principal.... Apparent authority has two elements. First, it must appear from the acts of the principal that the principal held the agent out as possessing sufficient authority to embrace the act in question, or knowingly permitted him to act as having such authority.... Second, the party seeking to bind the principal must have acted in good faith reliance on that appearance of authority." (Internal quotation marks omitted.) 111 Whitney Avenue, Inc. v. Commissioner of Mental Retardation, 70 Conn.App. 692, 703-704, 802 A.2d 117 (2002).
Connecticut, nevertheless, has yet to apply the doctrine of apparent authority to allow for a principal to be held liable to a third person who was harmed by the tortious conduct of a person held out as the principal's agent. In Mullen v. Horton, 46 Conn.App. 759, 771, 700 A.2d 1377 (1997), this court observed that other states have used the doctrine of apparent authority "to
In Davies v. General Tours, Inc., 63 Conn.App. 17, 31, 774 A.2d 1063 (2001), cert. granted on other grounds, 256 Conn. 926, 776 A.2d 1143 (2001) (appeal withdrawn October 18, 2001), this court again determined that the doctrine of apparent authority should not be used to hold a principal liable for the tortious conduct of a person held out as its agent. Citing Mullen, we determined that apparent authority "is not a viable ground on which to premise liability against a [principal] sued for the torts of an alleged agent." Id.
In the present case, the claims against AAMCO sound in tort and are based on the tortious conduct of Drive Train, which the plaintiff alleges AAMCO held out as its agent. Because this court has held that the doctrine of apparent authority cannot be used to hold a principal liable for the tortious actions of its alleged agent, we conclude that the trial court erred in determining that Drive Train had apparent authority to bind AAMCO.
The judgment is reversed only as to the finding that AAMCO Transmissions, Inc., is vicariously liable to the plaintiff and the case is remanded with direction to render judgment in favor of AAMCO Transmissions, Inc. The judgment is affirmed in all other respects.
In this opinion the other judges concurred.