SUE L. ROBINSON, District Judge.
At Wilmington this 15
1.
2. Georgetown has presented evidence to support its contention that DBF was its agent with respect to the construction project ("project") giving rise to this litigation. Georgetown makes two primary arguments in supporting its position: that the relevant contractual documents pertaining to the project indicate that DBF was its agent for purposes of the project, and that DBF acted as Georgetown's "Town Engineer" for the past twenty years. (D.I. 67 at 1-2)
3. With respect to its first argument, Georgetown refers to its agreement with Bramble that sets forth the terms of the project, which stated, "[t]he [p]roject has been designed by Davis Bowen & Friedel, Inc. [], which is to act as Owner's representative, assume all duties and responsibilities, and have the rights and authority assigned to Engineer in the Contract Documents in connection with the completion of the Work in accordance with the Contract Documents." (D.I. 67-1 at 10) Georgetown also refers to the performance bond accompanying the contract for the project, which describes DBF as "Owner's Representative" on the bond. (D.I. 67-1 at 19) In supporting its second argument, Georgetown includes documents demonstrating that DBF has acted as Georgetown's "Town Engineer" for approximately twenty years. (D.I. 67 at 2) These documents include Town Council meeting minutes that refer to an employee of DBF as the "Town Engineer"
4. In contrast, Liberty Mutual states that DBF was never an agent of Georgetown because Georgetown did not exercise the level of control over DBF necessary to establish an agency relationship. (D.I. 69 at 1) Liberty Mutual states that DBF is a general contractor, and that Georgetown admitted such when it responded to Liberty Mutual's brief in opposition to the motion to quash. (Id.) According to Liberty Mutual, independent contractors are generally not seen as agents of the parties with whom they have contracted. (Id.) Liberty Mutual further states that, although there is a limited exception to this general rule when the owner/contractee's control dominates the work being performed under the contract, DBF would not fall within the scope of this exception. (Id.)
5. In support of this assertion, Liberty Mutual states that Georgetown did not have sufficient knowledge of engineering to be able to control decisions made by DBF and that Georgetown relied on DBF to obtain relevant information about the project. (Id.) Liberty Mutual also refers to Georgetown's contract with DBF for the project and states that, under the applicable case law, DBF was not Georgetown's agent because the contract indicates that Georgetown did not "control" DBF in such a way that would establish an agency relationship.
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7. Further, "one well-recognized exception to the general rule of non-agent status for an independent contractor turns on the "amount of control retained or exercised by the owner." Id. (citing E.I. DuPont De Nemours & Co. v. Griffith, 130 A.2d 783, 784 (Del. Super. 1957)). Under DuPont, whether such control exists turns on whether "the owner's or contractee's control or direction dominates the manner or means of the work performed, the non-agent status of the independent contractor can be destroyed and the independent contractor becomes an agent capable of rendering the principal vicariously liable for the acts of the independent contractor." DuPont, 130 A.2d at 785.
In explaining its analysis, the DuPont court stated:
Id. at 784-85 (internal citations omitted).
8. In addition, this court has ruled on the issue of agency and found that the "element of continuous subjection to the will of the principal" is a defining factor of the agency relationship, as compared to other relationships. Brown v. lnterbay Funding, LLC, 2004 WL 2579596, at *3 (D. Del. 2004). In Brown, the court found that no agency relationship existed between the parties who had contracted to provide an "independent appraisal report."
9. Further, the Restatement (Second) of Agency states that an agency relationship requires "an understanding between the parties which, as interpreted by the court, creates a fiduciary relation in which the fiduciary is subject to the directions of the one on whose account he acts." Restatement (Second) of Agency § 1 (1958). Additionally, Comment B to Subsection (1) states that "[i]t is the element of continuous subjection to the will of the principal which distinguishes the agent from other fiduciaries and the agency agreement from other agreements." Id., cmt. b.
10. Given this standard, while independent contractors are not typically considered agents, they may be deemed agents if the principal or owner exercises sufficient control over them. The existence of an agency relationship, therefore, is determined by the level of control the principal exercises over the independent contractor.
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12. Under the standard set forth in the Restatement (Second) of Agency, DBF is not an agent of Georgetown because DBF was not "continuously [subject] to the will" of Georgetown in acting as "Town Engineer" or with respect to the contract between Georgetown and Bramble. Restatement (Second) of Agency § 1 cmt. b (1958). As Liberty Mutual indicates, Georgetown could obtain only certain information regarding the project from DBF and Georgetown lacked sufficient knowledge of engineering to control DBF. (D.I. 69 at 1) Further, language contained in the contract between Georgetown and DBF expressly demonstrates a lack of control that would establish an agency relationship. By disclaiming responsibility for the technical accuracy of DBF's services, Georgetown indicated that it intended not to exercise complete control over DBF in regard to this contract. (Id. at 2)
13. In addition, under Brown, DBF is not an agent of Georgetown because the arrangement between the two parties indicates a lack of the requisite control. In Brown, the court examined the contract in determining whether one party exercised sufficient control over the other in order to establish a principal-agent relationship. See Brown, 2004 WL 2579596, at *3 ("Although the agreement placed certain requirements on the appraisal, [the bank] was not in control of the process."). Similar to the agreement at issue in Brown, the contract between Georgetown and DBF demonstrates that DBF retained its design documents, and DBF explicitly stated that if Georgetown used its design documents, it would bear all associated risks. In light of Brown, these conditions demonstrate that Georgetown did not control DBF in such a way that would indicate DBF was Georgetown's agent.
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