Gagnon V. Coombs

Gagnon v. Coombs

This case study here involves a family who has given power of attorney rights to one child and not to another. The facts are that Francis Gagnon who is the father of Joan Coombs and Frank Gagnon own two separate lands, one in Massachusetts and the other in New Hampshire. Prior to their mother dying, Joann suggests that Francis sign over power of attorney to her, which he complies. After their mother's death, Frank found out about the power of attorney and convinced the father to revoke the power of attorney. Frank did so without telling Joan. He signed over a sale and purchase agreement to Frank for the house in New Hampshire and told Joan what his intentions were. Joan on the other hand, did not know that the power of attorney has been revoked and placed the property in a trust that she created and controlled. The attorney for Gagnon demanded that she should return the property to Francis, but she refused. The court stated that Joan had the authority under her power of attorney that was given to her and Francis appealed.

In this case study, I would assume that although these are his kids that he is dealing with, there is an issue with agency relationship because of the conflict of interest between both parties. "Unless otherwise agreed, an agent may not act for two principals whose interest conflicts" (Beatty & Samuelson, 2010). The reason that I think the judge went in favor of Joan Coombs was because of the power of attorney that was consented by Francis Gagnon. Although he revoked his power of attorney from Joan, she was not aware of the situation. In order to terminate an agency relationship according to Beatty & Samuelson, 2010, "Both parties have to mutually agree that the relationship is ending". It could be done when a term agreement has ended within a time frame, achieving a purpose once a goal has been reached or mutual agreement when the two parties mutually agree that they no longer want to have a relationship. Since Joan, was not aware of the actions of Francis when he revoked the power of attorney, in her mind they were still in an agency relationship. Francis told Joan of his plans to sale and purchase the New Jersey's land to Frank, but the case study does not clearly state that he told her, she no longer has power of attorney privileges. Another question that may arise is whether or not she moved the land into a trust, right after getting power of attorney. The case does not clearly define the times when all these events have occurred, because if she did move it into the trust prior to Francis canceling the power of attorney, she would have still been entitled to do what she wanted with the power of attorney in hand.

Reference:

Beatty, J. & Samuelson, S., (2010). Introduction to Business Law. Mason, OH: Southwestern Cengage Learning.