QUESTION
In regards to a POA can the said designated POA use personal property for personal gain?
Asked on Aug 09th, 2018 on Breach of Contract - New Mexico
More details to this question:
My father is incarcerated and he signed a POA to whom he entrusted and I am the successor on it as well. The designated individual had taken my fathers vehicles and titles them in her name and is now selling the vehicles to “recoup her financial loss”. It does statement in the POA that an individual can not use personal property for personal gain unless stated in special instructions. Did she break the law and can I get these said vehicles back without having to purchase them back?
1 ANSWER
Anyone holding a power of attorney owes a fiduciary duty to the person he/she represents to act in that party's interest and not in his/her own. Based on the facts set forth above, your father has a claim against the holder of the POA for breach of her fiduciary duty. However, unless the person(s) who purchased the vehicles knew or had reason to know that the holder of the POA had no right to sell the vehicles, they are what is known as "bona fide purchasers for value" from whom your father can't recover the vehicles. He can only recover the money he lost from their sale.
Answered on Aug 09th, 2018 at 1:18 PM