Reviewing, Or Reeling In, The Principal's Agent Under A Power Of Attorney

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In Arkansas, the Uniform Power of Attorney Act (Ark. Code Ann. § 28-68-101, et seq.) provides grounds for reviewing an agent’s conduct. A possible cause of action arises when an agent breaches fiduciary duties—such as acting outside the scope of authority, self-dealing, or failing to act in the principal’s best interest. Courts may intervene to compel an accounting, revoke authority, or impose liability for damages.

Understanding the Agent’s Fiduciary Duties

Under the Arkansas Uniform Power of Attorney Act, an agent is not simply a helper—they are a fiduciary. This means they must:

  • Act in good faith and in accordance with the principal’s reasonable expectations.

  • Avoid conflicts of interest unless expressly authorized.

  • Preserve the principal’s estate plan to the extent known.

  • Keep records of transactions conducted on behalf of the principal.

  • Act loyally and prudently, prioritizing the principal’s financial and personal well-being.

When these duties are violated, the law recognizes a cause of action to challenge the agent’s behavior.

Possible Causes of Action

A principal, family member, or interested party may seek judicial review if they suspect misconduct. Common grounds include:

  • Exceeding authority: For  example, creating or revoking a trust without specific authorization. 

  • Self-dealing or misappropriation:  Using the principal’s funds for personal benefit.

  • Failure to account:  Refusing to provide records of financial transactions.

  • Neglect of duty:  Ignoring the principal’s needs or failing to act when required.

These claims can lead to remedies such as removal of the agent, restitution, or damages.

Judicial Oversight and Remedies

Arkansas courts have authority to:

  • Compel an accounting of the agent’s actions.

  • Suspend or terminate authority if misconduct is proven.

  • Order restitution for losses caused by the agent’s breach.

  • Award damages against the agent personally.

This judicial oversight ensures that the power of attorney remains a tool of protection, not exploitation.

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House, Swann & Downing, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.