Evans Construction (EC) specializes in the construction and distribution of specialized products for “preppers.” These products must meet exacting specifications in construction and while being transported from Evans Construction to a wholesaler’s warehouse. Many of EC’s customers were concerned with maintaining security and secrecy when they purchased and installed underground bunkers.
In an effort to improve its construction and shipping logistics operations EC hired Benjamin who had experience in operations logistics as a consultant. EC and Benjamin agreed that Benjamin would study ECs operations by conducting interviews with employees and customers and would then design a new logistics plan and oversee its implementation.
The parties agreed that Benjamin would give regular updates at weekly management meetings. Because the EC project was so time-intensive, Benjamin devoted 100 percent of his work time to EC. EC agreed to pay Benjamin $150 per documented hour for work performed on the project. EC also provided office space at their headquarters for Benjamin’s use.
1. What is Benjamin’s agent classification? What factors did you use in making this determination?
2. After several frustrating weeks of dealing with EC’s disorganized management, Benjamin decides to “cut his losses” with this job and sells a confidential client list to EC’s biggest competitor for $45,000. Which fiduciary duty or duties has Benjamin breached? Explain your conclusion. What are EC’s remedies against Benjamin?