(1) A principal is not liable for an act, error, or omission by an agent or subagent of the principal arising out of an agency relationship:
(a) Unless the principal participated in or authorized the act, error, or omission; or
(b) Except to the extent that: (i) The principal benefited from the act, error, or omission; and (ii) the court determines that it is highly probable that the claimant would be unable to enforce a judgment against the agent or subagent.
(2) A broker is not liable for an act, error, or omission of a subagent under this chapter, unless that broker participated in or authorized the act, error or omission. This subsection does not limit the liability of a firm for an act, error, or omission by a broker licensed to the firm.
[ 2013 c 58 § 10; 1996 c 179 § 9.]