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<br />May 3, 2006 <br />Page 4 of6 <br /> <br />Another argument that could possibly be raised deals with principal and agent <br />relationships. In fact, if the City Council were to "revisit" the Code violations that were dealt <br />with by Mr. Beets last fall, it would be attempting to disavow the action of the City Manager <br />and say, in effect, that was not authorized and we are going to look at this ourselves. General <br />principles of agency might preclude the City Council from taking such a stance. In general, an <br />agent is a person who is authorized to act for a principal. Clearly, as a municipality, the City <br />acts only through its agents. The City Manager is an agent of the City. In dealing with scope <br />of authority of an agent, which often comes into play in cases, it is said that an agent acts <br />within the scope of his or her authority ifhe or she has the express or implied authority to act <br />for the employer. Implied authority to act can be determined by the course or pattern of <br />dealing between the principal and agent. See,~, Hockemever v. Pooler, 130 N.W.2d 367 <br />(1964); Derrick v. Drolson Co., 69 N.W.2d 124 (1955). This is where the reference to past <br />practices of the City which gave rise to Mr. Beets' belief, which the conflict prosecutor <br />indicated might be reasonably held, would come into play. In a very real sense, implied <br />authority is that authority which is inferred from a course of dealing between the principal and <br />the agent. Derrick, supra.; see also Schlick v. Berg, 286 N.W. 356 (Minn. 1939). <br /> <br />Therefore, the argulnent that the City already acted once and C&">1not act again, Inay also <br />be made not so much on the basis of double jeopardy but on the basis of the principal and <br />agent relationship. While it is very similar to a double jeopardy argument, it is a separate <br />theory that an entity might raise to preclude the City from acting again. Or certainly at least to <br />suggest to an Independent Hearing Officer that the City is acting inappropriately in attempting <br />to revisit the Code violation penalties. Ifa party were to attempt to disavow the acts of its <br />agent, and then there was proved a pattern of practice which would show that agent had <br />authority, that might very well tip the balance in a hearing officer's mind as to whether the <br />hearing officer should apply double jeopardy principles. <br /> <br />There are other theories that could be raised. One of them is estoppel. There are a <br />number of various forms of estoppel that can apply. I am therefore not going to try to cite all <br />the law and the various permutations of arguments that might arise under those various laws. <br />However, simply and succinctly stated, estoppel arguments are raised when a party relies upon <br />the other person's conduct, in taking some action to their detriment, that would make it unjust <br />or unequitable to allow the other party to now change its position or make a certain argument <br />given the earlier conduct and the detrimental reliance. In taking part in optional programs, and <br />in effect, paying double the generally prescribed first offense fine (even if half of that doubled <br />amount was deemed a charitable contribution), the liquor establishments in question could <br />conceivably argue that there is some estoppel that should apply to an attempt to revisit the <br />liquor code violations. <br /> <br />Finally, the last theory that I could see a party raising in order to preclude a second look <br />at the sanctions imposed last year for the violations in question is that of the doctrine of res <br />judicata. Res judicata basically states that a final judgment on the merits of an action precludes <br />