Yes, someone with a valid power of attorney can bring a lawsuit on behalf of the person who granted them authority, if the power of attorney vests them with legal authority to do so. Generally, a power of attorney can authorize actions like property management, conducting financial transactions, or pursuing litigation. However, whether an agent can bring a lawsuit on their principal’s behalf depends on the type of power attorney and the specific powers it grants.
What is a Power of Attorney?
A power of attorney (“POA”) is a legal document that allows the person granting the authority (the “principal”) to designate an attorney-in-fact (the “agent”) to act on their behalf in specified matters.
To execute a legally valid POA, principals must satisfy certain statutory requirements. For instance, the POA must (1) state the date of its execution; (2) be signed by the principal, or another adult in the presence, and under the direction, of the principal; and (3) must be acknowledged before a public notary or signed by at least two witnesses. (Jackson v. County of Amador (2010) 186 Cal.App.4th 514, 520.)
In California, principals may use POA’s to vest agents with authority with respect to all lawful subjects and purposes or with respect to one or more express subjects or purposes. (Prob. Code, § 4123.) As such, depending on the principal’s intent, the scope of authority granted under a POA can be incredibly broad or extremely limited. Thus, depending on the POA, an agent may be authorized to make decisions regarding all or part of a principal’s real and/or personal property. (Prob. Code, § 4123, subd. (b).)
Authority to Bring a Lawsuit
Under California law, a general power of attorney may vest the agent with authority to act on the principal’s behalf in a variety of matters, including litigation. Notably, a POA is not a method of authorizing an attorney-in-fact to act as the principal’s attorney-at-law. (People ex. rel Dept. of Public Works v. Malone (1965) 232 Cal.App.3d 531, 536-537.) Thus, an agent acting with authority under a POA can bring a lawsuit on the principal’s behalf if the POA explicitly grants this authority. (Prob. Code, § 4123.) An agent cannot legally act outside the scope of the specific powers authorized in the POA. (Young v. Horizon West, Inc. (2013) 220 Cal.App.4th 1122, 1129-1130.)
For example, in Maxwell v. Atria Management Co., LLC, the court held that the power of attorney granted the agent broad authority to commence, prosecute, enforce, and/or defend legal proceedings on behalf of the principal. ((2024) 105 Cal.App.5th 230, 233-234.) Similarly, statutory form POAs often include provisions authorizing agents to prosecute, defend, settle, or compromise claims and litigation on the principal’s behalf. (Prob. Code, § 4450; Lombardo v. Gramercy Court (2024) 107 Cal.App.5th 1028, 1032.)
The grant of authority available depends on the type of POA executed. Healthcare POAs characteristically limit the agent’s decision-making authority to the principal’s healthcare and are therefore subject to different limitations. As such, a healthcare POA will only authorize litigation related powers if explicitly stated, albeit such grants are uncommon. General POAs, however, commonly grant authority for agents to bring lawsuits on the principal’s behalf.
Revocability and Termination
As a rule, a principal can revoke their POA at any time, if they have capacity to do so. (Todd v. Superior Court of California in and for City and County of San Francisco (1919) 181 Cal. 406, 417.) Thus, even when POA is, by its own terms, irrevocable, the principal may nonetheless revoke the POA unless it is coupled with an interest, or given as security for the payment of money, or for performance of an act deemed valuable. (Id.) A POA is irrevocable and coupled with an interest when the agent has a beneficial interest in the subject matter. (Id.; Hunt v. Rousmanier (1823) 21 U.S. 174, 203.)
Likewise, POAs automatically terminate upon the principal or agent’s death or incapacity, unless coupled with an interest. (Civ Code, § 2356(a); In re Kilborn (1907) 5 Cal.App. 161, 165.) A POA may also terminate upon the happening of an event specified in the POA’s terms, extinction of the POA’s subject matter, fulfillment of the purpose. (Civ. Code, § 2356(a).)
A POA coupled with an interest survives the principal’s death because the interest allows the agent to execute the power in their own name. (Todd v. Superior Court of California in and for City and County of San Francisco, 181 Cal. at 417-418.) Unlike a standard POA, the principal relinquishes control over the agent in a POA coupled with an interest. (Bonfigli v. Strachan (2011) 192 Cal.App.4th 1302, 1309.) Here, the agent acts solely in their own interest. (Id.) As such, a POA coupled with an interest terminates upon the extinction of the agent’s interest in the subject matter. (Id.)
Overall, the revocation or termination of a POA depends on the POAs specific terms, the principal’s intention, and the agent’s interest, if any, in the subject matter.
What is an Example?
“Shawn” and “Julie” co-own a duplex in California. Julie lives in one unit and Shawn rents out the other. Due to Julie’s constant traveling, Julie signs a power of attorney naming Shawn as her agent for limited purposes, but explicitly authorizing Shawn to handle legal matters related to the property on Julie’s behalf.
Unbeknownst to Julie, Shawn files an eviction lawsuit against his current tenant in Julie’s name using the POA. Julie immediately revokes the POA, notifies the Court of Shawn’s unauthorized actions, and seeks to remove her name from the lawsuit. Angered by Julie’s actions, Shawn changes the locks on the duplex.
When Julie returns and discovers Shawn’s actions, she attempts to contact Shawn, who refuses to speak with Julie. Eventually, Julie has no choice but to file a partition action, seeking the forced sale of the property and the subsequent termination of her co-ownership with Shawn.
Conclusion
A power of attorney may authorize an agent to bring a lawsuit on the principal’s behalf, if there is an express and effective grant of authority. Ultimately, however, the scope of power and subsequent limitations on an agent’s authority depends on the principal’s intent and the type of POA created. In some circumstances, POAs may lead a co-ownership relationship to turn contentious. If your agent abused your POA’s authority to your co-ownership relationship’s detriment, partition may be a solution. At Underwood Law, our partition attorneys can help you navigate your action efficiently and with care. We are here to help.