Opinion ID: 1733175
Heading Depth: 1
Heading Rank: 5

Heading: Iowa Realty's Vicarious Liability.

Text: Iowa Realty claims it should not be responsible vicariously for Hart's acts on the Grand Avenue properties. It does not make this claim concerning the East 40th Street transaction. We conclude that a jury issue was generated in the present case against Iowa Realty on either a direct or vicarious theory of liability based upon the evidence surrounding the Grand Avenue properties. Iowa Realty was the licensed real estate broker which contracted with plaintiffs in the present case to represent them on the sale of the Grand Avenue properties. The corporation was aware at a management level that its sales agent, Hart, was buying the property for herself and thus facing a potential conflict of interest. Additional facts relating to this transaction are discussed in the following division of this opinion concerning exemplary damages. Given the circumstances shown by the evidence, we believe Iowa Realty had a nondelegable fiduciary duty to monitor Hart's activities. The jury could have found on the present record that it did not act properly to discharge that duty. See, e.g., Mechanicsville Trust & Savings Bank v. Hawkeye-Security Insurance Co., 158 N.W.2d 89, 91-92 (Iowa 1968).