ÿWPCù ²uØkùùÌÈá‡Æ®Í8z÷ÀŽNP?s˜‡Ñ\,ʪ±$È %SÀþ.%†³®“Þ•Î{纵 åÿ“xB˜€Í ‰ém.æ¡×}ê5Îf¬²ÎëШô¾\ˆ™íã0žüQªìY~nJV žh² 0ò—O‡¹ —0Ç……RtDx”Hö‘˜£9 C= ùV½pÞº‹­ŒKL[þü¤}Ã(8M&@¢ËCB[Ðr¯cwø„æÄ¯`‰e©“B#†ÌÕ.¨U’:%0x9™h³)J˜¥0 Ç|G{”º?º$QÝwòÅ È”¾‰FpJø|Å?my>Å{ÿ<;¶*p“ {QoõÄ}|«.‚›Ø¿lÊü>ˆ‰¥°£®åå­@,ŽÈü{™ ÆÆâóS”7=le×~ûô‡F~…}çêE!Êã¿êE xëT9J-$f€éaæ}ŽK«kòý“Ë̘Vý?üÿ7v7/àºv:™°³Ú~uvé…nv£¨'ëÈeMÊ¢N'ÁpË©L°ë.!G›í¤á¼ØÝàE·øýÐ'ÇP‚U´ê5ð™8r›5Áº*¿ëŽH”÷uç…ž®_úb#Á\ % ^ # 0ˆ/ UN· w 4 z Ò— i x mz ‘ Æ™ Æ_ Æ% Æë 0D±Nõ 1‡÷ 0c~EáUNã/1ò`RnetÓ 1uG 72¼¼¼¼¼¼¼¼¼¼¼¼¼¼¼¼bîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîî 0ëöööö Báá 0¤þ D3¢ D-Õ 0K ASMÆ  0¤f 0D  A«N˜HP LaserJet 8000 Series PSØÚØÚÚØØÚ0»1xh+â (`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman Regularm~g+ œk1x   ˜C:\PROGRA~1\COREL\WORDPE~1\TEMPLATE\CUSTOM~1\REVISE~1.WPTC:\Program Files\Corel\WordPerfect Office 2000\Template\Custom WP Templates\revised standard opinion.wpt3|xÿU‹ÿÀÀÀ Level 1Level 2Level 3Level 4Level 5‚Level 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5(#Ã$òòÚ  Ú0Ú  Úóó(5hCEKQW]cioAutoList1I.I.I.I.I.I.I.I.(;3£$´´Ô2#ÔÚ  Ú0Ú  Ú.Ô3  Ôà0  à(ÖÃ9 Z‹6Times New Roman Regular %Ý ƒRZý$ÝÓ  Óà  àòòÚ  Ú2Ú  ÚóóÔ€ôIy ò»»ÔÝ  ÝÔ_ÔIt€appears€from€the€record€that€Mr.€Eaton€and€Ester€Lee€Eaton€remain€married,€however,€Ester€Lee€has€notÐ ° Ðlived€with€Mr.€Eaton€since€1993€or€1994.€€ èÝ ƒRZý$ÝÓ  Óà  àòòÚ  Ú3Ú  ÚóóÔ€ôIy ò»»ÔÝ  ÝÔ_ÔElnora€admitted€Mr.€Eaton€into€a€nursing€home€on€November€17,€1997,€when€Mr.€Eaton€was€81€years€old.€Ð ° ÐThe€initial€evaluation€of€Mr.€Eaton€stated€that€Mr.€Eaton€had€dementia,€and€he€was€diagnosed€with€early€AlzheimerððsÐ tÄ Ðdisease.€€Mr.€Eaton€did€not€testify€at€trial€and€remains€in€the€nursing€home€as€a€total€care€patient. Ý ƒRZý$ÝÓ  Óà  àòòÚ  Ú1Ú  ÚóóÔ€ôIy ò»»ÔÝ  ÝÔ_ÔFor€the€sake€of€clarity,€we€will€refer€to€Elnora€Eaton€by€her€first€name.€€We€will€do€the€same€with€Esther€LeeÐ ° ÐEaton.€€ dÝ ƒRZý$ÝÓ  Óà  àòòÚ  Ú4Ú  ÚóóÔ€ôIy ò»»ÔÝ  ÝÔ_ÔSection€34„6„109€of€the€Tennessee€Code€provides€specifically€enumerated€powers€possessed€by€an€attorneyÐ ° Ðin€fact€who€is€appointed€pursuant€to€a€durable€power€of€attorney.€€Tenn.€Code€Ann.€ðð€34„6„109€(1996).€€ jÝ ƒRZý$ÝÓ  Óà  àòòÚ  Ú5Ú  ÚóóÔ€ôIy ò»»ÔÝ  ÝÔ_ÔIn€his€opening€argument,€Mr.€Eatonððs€attorney€stated€that€ð ðMr.€Kelly€paid€a€fair€sum€for€the€property.ðð€Ð ° ÐAdditionally,€Mr.€Kelly€stated€that€$75,000€was€a€fair€price€and€there€is€no€evidence€to€the€contrary.3#37=CIQYag­­1.a.i.(1)(a)(i)1)a)i)- ù-(|G2Zý$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€M¬»»d d 8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€ô7@ò»»Ô d(|3Î$££Ý ƒ£ª!ÝÑ€.ÑÑ8€M¬»»d d 8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV'ÿÿdxd)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3Î$¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€M¬»»d d 8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ£ª!ÝÑ€.ÑÑ8€Q¼»»d dÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÑ  ÑÔ€¼ù»»»ÔÑ8€1LXXdê»»d 8ÑÑ  Ñà@ü ü ìàÔ‡îâ°î»¼ùÔIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@õõ%ìàAT€JACKSONÔ#†¼ù»îîâ° #ԈРÖ& ÐÓ  ÓSeptember€17,€2001€SessionÐ üL ÐÔ‡X½MX»¼ùÔÌò òÔ#†¼ù»XX½Mõ#ÔWILLIAM€ISAAC€EATON,€by€next€friend€CALLIE€LOUISE€JOHNSONòòóó€v.Ð úJ ÐELNORA€EATON,€òòet€alóó.Ô‡X½MX»¼ùÔó óÐ  ^ ÐÌà@@½½ìàò òDirect€Appeal€from€the€Chancery€Court€for€Tipton€CountyÐ  ^ Ðà@@øøìàNo.€15,921€€€€€Dewey€C.€Whitenton,€ChancellorÐ ú J ÐÌÌà@@ìì*ìàßA€V) °°` d€÷E<½` AßÐ ¾  ÐÌà@@TTìàNo.€W2001„00576„Ô_ÔCOAÔ_Ô„R3„CV€„€Filed€November€7,€Ô_Ô2001Ô_ÔÐ ¹  ÐÌßA€V) °°` dE<` AßÐ ‘á  Ðó óÌÓ  ÓThis€case€involves€the€sale€of€the€plaintiffððs€land€to€the€defendant.€€The€plaintiffððs€attorney€in€fact,Ð ŒÜ Ðpursuant€to€a€valid€durable€power€of€attorney,€sold€the€land€to€the€defendant.€€The€trial€court€held€thatÐ xÈ Ðthe€transaction€between€the€attorney€in€fact€and€the€defendant€was€fair,€valid€and€binding€as€to€theÐ d´ Ðplaintiff.€€The€plaintiff,€by€next€friend,€appeals€the€ruling€of€the€trial€court.€€We€affirm€the€judgmentÐ P  Ðof€the€trial€court.€€€€€€à@ìì*ìàò òòòóóó óÔ#†¼ù»XX½M¬#ÔÔ‡X½MX»¼ùԈР<Œ ÐÓøÓÌò òTenn.€R.€App.€P.€3€Appeal€as€of€Right;€Judgment€of€the€Chancery€Court€Affirmed;€andÐ d ÐRemandedó óÐ P ÐÌòòÓ  ÓÔ#†¼ù»àX½MV#ÔÔ‡X½MX.¼ùÔDavid€R.€Farmer,€J.óó,€delivered€the€opinion€of€the€court,€in€which€òòAlan€E.€Highersóó€and€òòHolly€K.Ð Ø( ÐLillard,€J.J.óó,€joined.Ð Ä ÐÌJ.€Thomas€Caldwell,€Ripley,€Tennessee,€for€the€appellant,€William€Isaac€Eaton.Ð œì ÐÌT.€D.€Forrester,€Covington,€Tennessee,€for€the€appellee,€Kelcot€Warehouses,€L.L.C.Ð t Ä ÐÓ+ÓÌò òOPINIONó óÔ#†¼ù»XX½MZ#ÔÔ‡X½MX»¼ùÔÐ L"œ! ÐÌÔ#†¼ù»XX½M3 #ÔÓ  ÓÔ€X½MX»¼ùÔà  àWilliam€Isaac€Eaton€(Mr.€Eaton)€owned€a€farm€in€Tipton€County,€Tennessee.€€In€1976,€Mr.Ð $$t# ÐEaton€met€Richard€Kelly€(Mr.€Kelly),€the€managing€partner€of€Kelcot€Warehouses,€L.L.C.€(Kelcot).€Ð %` $ ÐIn€the€early€1980's,€Mr.€Kelly€began€renting€Mr.€Eatonððs€farm.€€While€renting€and€farming€Mr.Ð ü%L!% ÐEatonððs€property,€Mr.€Kelly€became€well€acquainted€with€Mr.€Eaton.€€On€several€occasions,€Mr.Ð è&8"& ÐEaton€offered€to€sell€the€farm€to€Mr.€Kelly.€€Each€time€Mr.€Eaton€offered€the€farm,€the€price€was€theÐ Ô'$#' Ðsame€„€$75,000.€€Mr.€Kelly€always€rejected€the€offer,€maintaining€that€the€price€was€too€high.€€Ð À($( Ðâ âÐ ¬)ü$)ýÿ Ðà  àIn€1994,€Mr.€Eaton€and€his€sister„in„law,€Elnora€Eaton€(Elnora),€visited€Mr.€Kelly€on€theÐ ° Ðfarm.׃×Ý ƒ#ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×€€Mr.€Eaton€informed€Mr.€Kelly€that€Elnora€was€going€to€begin€handling€his€business€affairs.€Ð œì Ðâ âOn€September€6,€1994,€Mr.€Eaton€executed€a€Durable€Power€of€Attorney€appointing€Elnora€as€hisÐ ˆØ Ðlawful€agent€and€attorney€in€fact.€€The€Durable€Power€of€Attorney€provided€that€Elnora,€who€wasÐ tÄ ÐMr.€Eatonððs€sister„in„law,€had€the€power€to€convey€Mr.€Eatonððs€real€estate.€€Ð `° ÐÌà  àMr.€Kelly€continued€to€rent€the€property€and€when€he€began€to€negotiate€the€rent€in€JanuaryÐ 8 ˆ Ð1997,€Elnora€told€Mr.€Kelly€that€she€required€part€of€the€rental€fee€in€advance.€€Mr.€Kelly€answeredÐ $ t Ðher€request,€stating,€in€effect,€that€he€would€be€better€served€by€purchasing€the€farm.€Elnora€agreed,Ð  ` Ðand€the€parties€began€negotiating€the€sale€of€the€farm.€€Ð ü L  ÐÌà  àPrior€to€meeting€again€with€Elnora,€Mr.€Kelly€contacted€an€attorney,€David€Owen€(Mr.Ð Ô$  ÐOwen).€€Mr.€Kelly€wanted€Mr.€Owen€to€determine€whether€Elnora€had€the€authority€to€convey€theÐ À  Ðproperty,€for€Mr.€Kelly€knew€that€Mr.€Eaton€did€not€have€the€mental€capacity€to€convey€the€land.€Ð ¬ü  ÐMr.€Kelly€sought€the€advice€of€Mr.€Owen€and€was€advised€that€Elnora€was€properly€authorized€toÐ ˜è  Ðtransfer€the€property€through€the€Durable€Power€of€Attorney.€€Ð „Ô  ÐÌà  àSometime€after€Mr.€Kellyððs€meeting€with€Mr.€Owen,€Mr.€Kelly€met€with€Elnora€and€Mr.Ð \¬ ÐEatonððs€estranged€wife,€Esther€Lee€Eaton€(Esther€Lee).׃×Ý ƒ#ÃÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ×€€Mr.€Kelly€offered€to€purchase€the€farm€forÐ H˜ Ð$75,000.€€Elnora€initially€rejected€the€offer€as€insufficient.€€Later,€however,€she€accepted€the€offerÐ 4„ Ðof€$75,000€and€agreed€to€convey€the€property€to€Mr.€Kelly.€€Ð  p ÐÌà  àOn€February€5,€1997,€Elnora,€pursuant€to€her€power€of€attorney,€executed€a€warranty€deedÐ øH Ðconveying€Mr.€Eatonððs€farm€to€Kelcot.€€Mr.€Owen€conducted€the€real€estate€closing.€€From€theÐ ä4 Ðproceeds€of€the€sale,€Mr.€Owen€issued€a€check€payable€to€Mr.€Eaton€and€presented€the€check€toÐ Ð  ÐElnora.€€After€the€closing,€Mr.€Kelly€told€Mr.€Owen€that€he€was€concerned€about€Mr.€Eaton.€€Mr.Ð ¼  ÐKelly€asked€Mr.€Owen€for€his€opinion€as€to€how€Elnora€and€Ester€Lee€would€handle€the€money.€Mr.Ð ¨ø ÐOwen€told€Mr.€Kelly€that€he€should€not€be€concerned€about€how€Elnora€and€Ester€Lee€wouldÐ ”ä Ðdisburse€the€funds.€€Reiterating€his€concern€about€Mr.€Eaton,€Mr.€Kelly€gave€Mr.€Eaton€a€lease€onÐ €Ð Ðthe€property.€€Ð l¼ ÐÌà  àMr.€Kellyððs€concerns€were€well„founded.€€Elnora€split€the€proceeds€of€the€farm,€which€wereÐ D!” Ð$57,004.59€after€satisfying€a€mortgage,€with€Ester€Lee.€€Elnora€claimed€she€used€a€portion€of€herÐ 0"€  Ðproceeds€to€make€repairs€to€Mr.€Eatonððs€house,€now€owned€by€Mr.€Kelly.€€Elnora,€however,€couldÐ #l! Ðnot€produce€any€records€of€these€repairs.€€Elnora€also€stated€that€a€portion€of€the€money,€$2,500,€isÐ $X" Ðin€a€safe€deposit€box.€€Esther€Lee€stated€that€she€spent€her€portion€of€the€farm€proceeds€on€bills€andÐ ô$D # Ða€car.€€Esther€Lee€maintains€that€she€no€longer€has€any€of€the€money.€€Ð à%0!$ ÐÐ Ì&"% Ðà  àMr.€Eaton׃×Ý ƒ#ÃÝòòÚ  Ú3Ú  ÚóóÝ  Ý×  ×,€by€next€friend,€sued€Elnora€Eaton,€Esther€Lee€Eaton,€and€Kelcot€Warehouses.€Ð ° ÐMr.€Eaton€wanted€the€trial€court€to€set€aside€the€land€sale€transaction.€€After€a€bench€trial,€the€courtÐ œì Ðentered€judgment€in€favor€of€Mr.€Eaton€against€Elnora€and€Esther€Lee.€€The€court€held€that€Ð ˆØ ÐÌÒ°ÒÒ°Òall€funds€disbursed€or€used€by€Elnora€Eaton€that€are€not€specifically€shown€to€haveÐ `° Ðbeen€spent€for€the€direct€benefit€of€William€Isaac€Eaton,€including€all€funds€paid€toÐ L œ Ðhis€wife,€Esther€Lee€Eaton,€are€unauthorized,€illegal€and€in€direct€violation€of€theÐ 8 ˆ Ðfiduciary€duties€and€trust€responsibilities€that€Elnora€Eaton€had€to€Mr.€Eaton.€€€€€Ð $ t ÐÒ°ÒÒ°ÒÌIn€holding€Elnora€and€Esther€Lee€Eaton€jointly€and€severally€liable,€the€court€imposed€an€equitableÐ ü L  Ðlien€on€all€property€owned€by€Elnora€and€Esther€Lee€and€issued€a€permanent€injunction€against€theÐ è 8  Ðsale€of€such€property.€€Ð Ô$  ÐÌà  àWhile€Mr.€Eaton€prevailed€against€Elnora€and€Esther€Lee,€he€was€not€successful€in€his€effortsÐ ¬ü  Ðagainst€Kelcot.€€In€ruling€in€favor€of€Kelcot,€the€court€stated€that€the€ð ðcrucial€test€is€whether€aÐ ˜è  Ðreasonable€person€would€have€been€placed€on€notice€of€the€irregularity€of€the€transaction,€and€knewÐ „Ô  Ðor€should€have€known€that€the€act€complained€of€was€not€in€the€incompetentððs€best€interest.ðð€€StatingÐ pÀ Ðthat€the€real€estate€sale€was€a€ð ðfair,€valid€and€binding€transaction€.€.€.€expressly€authorized€by€theÐ \¬ Ðdurable€power€of€attorney,ðð€the€court€removed€any€cloud€on€Kelcotððs€title€to€Mr.€Eatonððs€propertyÐ H˜ Ðand€dismissed€Mr.€Eatonððs€claim€against€Kelcot.€€Ð 4„ ÐÌà  àMr.€Eaton€appeals€the€trial€courtððs€decision€to€dismiss€the€complaint€against€Kelcot.€€TheÐ  \ Ðissues€on€appeal,€as€stated€by€Mr.€Eaton,€are€as€follows:Ð øH ÐÌÓ€ (5h83ÓÝ"‚3£"ÝÝ  Ýà8  àÝ‚3£ˆ%ÝÔ25hÔÚ  ÚIÚ  Ú.Ô3  Ôà0` Ð Ð àÝ  ÝWhether€the€trial€[c]ourt€erred€in€holding€a€validly€executed€Durable€PowerÐ Ð  Ðof€Attorney€precluded€a€finding€of€collusion€and€fraud€by€the€attorney€in€factÐ ¼  Ðand€a€third€party?݃3£ˆ%Á%݌Шø` Ð ` Ð  ÐŒÝ  ÝÌÝ"‚3£"ÝÝ  Ýà8  àÝ‚3£;'ÝÔ25hÔÚ  ÚIIÚ  Ú.Ô3  Ôà0` Ð Ð àÝ  ÝWhether€the€trial€[c]ourt€erred€in€failing€to€set€aside€the€deed€from€the€agentÐ €Ð Ðacting€under€[the]€Durable€Power€of€Attorney€to€the€Defendant,€KelcotÐ l¼ ÐWarehouses,€L.L.C.?€Ýƒ3£;'t'ÝŒÐX ¨` Ð ` Ð  ÐŒÝ  Ýà8  àÐ Ð Ð  Ðà  àTo€the€extent€these€issues€involve€questions€of€fact,€our€review€of€the€trial€courtððs€ruling€isÐ 0"€  Ðòòò òde€novoó óóó€with€a€presumption€of€correctness.€€Tenn.€R.€App.€P.€13(d).€€We€may€not€reverse€the€trialÐ #l! Ðcourtððs€factual€findings€unless€they€are€contrary€to€the€preponderance€of€the€evidence.€€òòò òId.ó óóó€WithÐ $X" Ðrespect€to€the€courtððs€legal€conclusions,€our€review€is€ò òòòde€novoóóó ó€with€no€presumption€of€correctness.€Ð ô$D # Ðò òòòBowden€v.€Wardóóó ó,€27€S.W.3d€913,€916€(Tenn.€2000).€€€€à p àÐ à%0!$ Ðâ âÐ Ì&"% Ðà  àSection€34„6„102€of€the€Tennessee€Code€defines€a€durable€power€of€attorney€as€a€ð ðpower€ofÐ ° Ðâ âattorney€by€which€a€principal€designates€another€as€the€principalððs€attorney€in€fact€in€writing€.€.€.Ð œì Ðshowing€the€intent€of€the€principal€that€the€authority€conferred€shall€be€exercisable,€notwithstandingÐ ˆØ Ðthe€principalððs€subsequent€disability€or€incapacity.ðð€€Tenn.€Code€Ann.€ðð€34„6„102€(1996).€€ActsÐ tÄ Ðperformed€by€an€attorney€in€fact€pursuant€to€a€durable€power€of€attorney€ð ðduring€any€period€ofÐ `° Ðdisability€or€incapacity€of€the€principal€have€the€same€effect€and€inure€to€the€benefit€of€and€bind€theÐ L œ Ðprincipal€.€.€.€as€if€the€principal€were€competent€and€not€disabled.ðð€€Tenn.€Code€Ann.€ðð€34„6„103Ð 8 ˆ Ð(1996).€€As€the€acts€done€by€an€attorney€in€fact€will€bind€the€principal€while€under€a€period€ofÐ $ t Ðdisability€or€incapacity,€it€follows€that€an€attorney€in€fact€is€vested€with€a€great€deal€of€responsibility.€Ð  ` ÐOne€acting€pursuant€to€a€durable€power€of€attorney€must€act€in€the€principalððs€best€interests€andÐ ü L  Ðwithin€the€scope€of€authority€granted€by€the€statute׃×Ý ƒ#ÃÝòòÚ  Ú4Ú  ÚóóÝ  Ý×  ×€and€the€principal.€€Thus,€the€relationship€betweenÐ è 8  Ðthe€attorney€in€fact€and€the€principal€is€subject€to€the€laws€of€agency.€€ò òòòSee€Kerney€v.€Aetna€Cas.€&Ð Ô$  ÐSur.€Co.,ó óóó€648€S.W.2d€247,€252€(Tenn.€Ct.€App.€1982€(quoting€òòò òHoward€v.€Havenóóó ó,€281€S.W.2d€480Ð À  Ð485,€1955))€(stating€that€ð ð[a]gency€in€its€broadest€sense€includes€every€relation€in€which€one€personÐ ¬ü  Ðacts€for€or€represents€another.ðð);€3€Am.€Jur.€2d€ò òòòAgencyóóó ó€ðð€23€(1986)€(stating€that€ð ð[i]n€many€respects,Ð ˜è  Ðquestions€concerning€agents€holding€powers€of€attorney€are€substantially€the€same€as€those€governingÐ „Ô  Ðagents€generally.ðð).€Ð pÀ ÐÌà  àIn€Tennessee,€the€relationship€between€the€agent€and€principal€is€fiduciary€in€nature€andÐ H˜ Ðgenerally€treated€with€the€same€gravity€and€strictness€as€the€trustee„beneficiary€relationship.€Ð 4„ Ðò òòòMarshall€v.€Sevier€Countyóóó ó,€639€S.W.2d€440,€446€(Tenn.€Ct.€App.€1982).€€An€agent,€as€a€fiduciary,Ð  p Ðis€under€a€duty€of€loyalty€to€the€principal.€€òòò òPridemore€v.€Cherryó óóó,€903€S.W.2d€705,€707€(Tenn.€Ct.Ð  \ ÐApp.€1995)€(citing€ò òòòGay€&€Taylor,€Inc.€v.€Am.€Cas.€Co.óóó ó,€381€S.W.2d€304,€305€(Tenn.€Ct.€App.Ð øH Ð1963)).€€Accordingly,€in€matters€connected€with€the€agency,€the€agent€must€serve€only€the€principal;Ð ä4 Ðthe€agent€cannot€act€for€themselves€or€in€the€interests€of€others.€€ò òòòHeard€v.€Milesóóó ó,€222€S.W.2d€848,Ð Ð  Ð851€(Tenn.€Ct.€App.€1949).Ð ¼  ÐÌà  àThere€are€circumstances€where€a€third€party€may€be€liable€to€a€principal€due€to€the€agentððsÐ ”ä Ðbreach€of€fiduciary€duty.€€Section€314€of€the€ò òòòRestatement€(Second)€of€Agency€óóó óstates€as€follows:Ð €Ð ÐÌà8  àA€person€who€receives€the€principalððs€property€from€an€agent€of€another,€with€noticeÐ X ¨ Ðthat€the€agent€is€thereby€committing€a€breach€of€fiduciary€duty€to€the€principal,€holdsÐ D!” Ðthe€property€thus€acquired€as€a€constructive€trustee,€or€at€the€election€of€the€principal,Ð 0"€  Ðis€subject€to€liability€for€its€value;€one€who€receives€such€property,€non„tortiously€andÐ #l! Ðwithout€notice,€but€who€is€not€a€bona€fide€purchaser,€is€subject€to€liability€to€theÐ $X" Ðextent€to€which€he€has€been€unjustly€enriched.Ðô$D #Ð Ð  ÐÌÌâ âÐ ¸'#& Ðò òòòRestatement€(Second)€of€Agency€óóó óðð€314€(2000).€€Further,€if€a€third€person€intentionally€causes€orÐ ° Ðâ âassists€an€agent€to€violate€their€fiduciary€duty€to€the€principal,€the€third€person€is€subject€to€liabilityÐ œì Ðin€tort€for€any€harm€they€have€caused€the€principal€or€in€a€restitutional€action€for€profit€they€derivedÐ ˆØ Ðfrom€the€transaction.€€3€Am.€Jur.€2d€ò òòòAgency€óóó óðð€299€(1986).€€Finally,€a€contract€executed€between€theÐ tÄ Ðprincipalððs€agent€and€a€third€party€is€voidable€at€the€option€of€the€principal€if€collusion€existedÐ `° Ðbetween€the€agent€and€the€third€party.€€òòò òHawkins€v.€Byrnó óóó,€261€S.W.€980,€982€(Tenn.€1924);€1€Tenn.Ð L œ ÐJur.€ò òòòAgencyó óóó€ðð€55€(2001).€Ð 8 ˆ ÐÌà  àIn€the€present€case,€Mr.€Eaton€does€not€argue€that€the€durable€power€of€attorney€was€invalidÐ  ` Ðat€the€time€of€its€execution.€€Instead,€Mr.€Eatonððs€first€argument€is€that€the€trial€court€erred€by€holdingÐ ü L  Ðthat€a€durable€power€of€attorney€precluded€a€finding€of€collusion€and€fraud€between€Elnora€and€Mr.Ð è 8  ÐKelly.€€We€disagree€with€this€interpretation€of€the€trial€courtððs€holding.€€In€its€opinion,€the€trial€courtÐ Ô$  Ðquoted€section€34„6„103€of€the€Tennessee€Code€regarding€the€effect€of€acts€done€by€an€attorney€inÐ À  Ðfact€pursuant€to€a€durable€power€of€attorney,€section€314€of€the€ò òòòRestatement€(Second€)€of€AgencyÐ ¬ü  Ðóóó óentitled€restitutional€liability,€and€the€seventh€edition€of€Gibsonððs€suits€in€Chancery€regarding€theÐ ˜è  Ðduty€of€the€chancery€court€ð ðto€help€those€who€cannot€help€themselves.ðð€€The€court€followed€byÐ „Ô  Ðstating€that€ð ð[t]he€crucial€test€is€whether€a€reasonable€person€would€have€been€placed€on€notice€ofÐ pÀ Ðthe€irregularity€of€the€transaction,€and€knew€or€should€have€known€that€the€act€complained€of€wasÐ \¬ Ðnot€in€the€incompetentððs€best€interest.ðð€€Finally,€in€dismissing€the€complaint€against€Kelcot,€the€courtÐ H˜ Ðfound€that€ð ðthe€sale€and€conveyance€of€the€real€estate€to€Kelcot€Warehouses,€L.L.C.€was€a€fair,€validÐ 4„ Ðand€binding€transaction€and€was€expressly€authorized€by€the€durable€power€of€attorney.ðð€€Clearly,Ð  p Ðthe€court€did€not€hold€that€a€durable€power€of€attorney€will€preclude€a€courtððs€examination€of€aÐ  \ Ðtransaction€between€an€attorney€in€fact€and€a€third€party.€€According€to€the€trial€courtððs€opinion,€theÐ øH Ðcourt€did€analyze€the€transaction€and€found€no€irregularity.€€Therefore,€we€conclude€that€Mr.€EatonððsÐ ä4 Ðfirst€issue€is€without€merit.€Ð Ð  ÐÌà  àMr.€Eatonððs€second€issue€is€really€the€crux€of€his€appeal.€€Mr.€Eaton€asserts€that€the€factsÐ ¨ø Ðpresented€in€the€present€case€illustrate€that€Mr.€Kelly€worked€with€Elnora€to€commit€fraud€on€Mr.Ð ”ä ÐEaton.€€We€cannot€agree.€€The€record€in€this€case€fails€to€justify€a€finding€of€collusion€or€fraudÐ €Ð Ðcommitted€by€Mr.€Kelly€and€Elnora€against€Mr.€Eaton.€€Further,€there€is€no€evidence€that€Mr.€KellyÐ l¼ Ðhad€notice€that€Elnora€would€misappropriate€the€funds€or€that€Mr.€Kelly€intentionally€assisted€ElnoraÐ X ¨ Ðin€breaching€her€fiduciary€duty€to€Mr.€Eaton.Ð D!” ÐÌà  àDue€to€his€conversations€with€Mr.€Eaton,€Mr.€Kelly€knew€that€Elnora€was€authorized€toÐ #l! Ðconduct€Mr.€Eatonððs€business€transactions.€€Mr.€Kelly€knew€that€Elnoraððs€authority€extended€toÐ $X" Ðconveying€Mr.€Eatonððs€realty.€€By€offering€to€buy€Mr.€Eatonððs€farm,€Mr.€Kelly€did€not€induce€ElnoraÐ ô$D # Ðto€exceed€her€scope€of€authority€as€Mr.€Eatonððs€agent.€€Instead,€by€making€the€offer€to€Elnora,€Mr.Ð à%0!$ ÐKelly€properly€consulted€with€the€only€person€who€had€the€authority€to€convey€the€farm.Ð Ì&"% Ðâ âÐ ¸'#& Ðà  àThe€record€indicates€that€$75,000€was€a€fair€price€for€the€farm.׃×Ý ƒ#ÃÝòòÚ  Ú5Ú  ÚóóÝ  Ý×  ×€€Indeed,€Mr.€Eaton€offeredÐ ° Ðâ âthe€farm€to€Mr.€Kelly€for€$75,000€on€several€occasions,€the€last€instance€being€two€to€three€yearsÐ œì Ðbefore€Elnora€actually€sold€the€farm€to€Mr.€Kelly.€€Therefore,€Mr.€Kelly€was€without€cause€to€noticeÐ ˆØ Ðany€irregularity€in€the€transaction.€It€would€not€have€appeared€to€Mr.€Kelly€that€Elnora€was€actingÐ tÄ Ðagainst€the€wishes€of€Mr.€Eaton€or€against€Mr.€Eatonððs€best€interests.€€Mr.€Kellyððs€offer€simplyÐ `° Ðmirrored€the€offer€that€Mr.€Eaton€gave€several€times€in€the€past;€the€offer€does€not€illustrate€an€intentÐ L œ Ðon€the€part€of€Mr.€Kelly€to€take€advantage€of€Mr.€Eatonððs€attorney€in€fact.€€Ð 8 ˆ ÐÌà  àFinally,€the€record€fails€to€provide€evidence€that€Mr.€Kelly€had€notice€that€Elnora€wouldÐ  ` Ðmisappropriate€the€funds€or€that€Elnora€would€breach€her€fiduciary€duty€to€Mr.€Eaton.€€There€is€noÐ ü L  Ðindication€that€Mr.€Kelly€knew€how€Elnora€would€spend€the€proceeds€from€the€sale€of€the€farm.€€Mr.Ð è 8  ÐEaton€argues€that€Mr.€Kellyððs€stated€concern€about€how€Elnora€would€handle€the€money,€in€additionÐ Ô$  Ðto€the€lease€Mr.€Kelly€granted€to€Mr.€Eaton,€illustrate€that€Mr.€Kelly€knew€Elnora€would€breach€herÐ À  Ðfiduciary€duty€to€Mr.€Eaton.€€We€cannot€agree.€€The€record€contains€no€evidence€illustrating€that€Mr.Ð ¬ü  ÐKelly€expressed€concern€and€leased€the€farm€because€of€what€he€knew€about€Elnora.€€Mr.€Kelly€didÐ ˜è  Ðknow,€however,€that€Elnora€had€cared€for€Mr.€Eaton€from€1994€until€the€date€of€the€conveyance€ofÐ „Ô  Ðthe€farm.€€We€are€not€prepared€to€rescind€a€conveyance€of€real€estate€made€pursuant€to€a€validÐ pÀ Ðdurable€power€of€attorney€solely€because€a€third€party€is€concerned€about€a€long€time€acquaintanceÐ \¬ Ðor€because€a€third€party€provides€a€lease€to€his€seller.€€There€must€be€more€concrete€evidenceÐ H˜ Ðregarding€what€Mr.€Kelly€knew,€or€should€have€known,€about€Elnora€before€we€can€deem€theÐ 4„ Ðconveyance€voidable.€€Finally,€we€must€note€the€trial€courtððs€findings€regarding€Mr.€KellyððsÐ  p Ðknowledge€as€to€Elnoraððs€future€actions.€€The€court€found€that€Mr.€Kelly€was€without€knowledge€thatÐ  \ ÐElnora€would€misappropriate€the€funds.€€The€trial€courtððs€finding€on€this€matter€is€not€contrary€to€theÐ øH Ðpreponderance€of€the€evidence.€€Therefore,€pursuant€to€our€standard€of€review,€we€decline€to€reverseÐ ä4 Ðthe€trial€courtððs€findings€on€this€issue.€€€€€€Ð Ð  ÐÌà  àThe€judgment€of€the€trial€court€is€affirmed.€€The€costs€of€this€appeal€are€taxed€to€theÐ ¨ø Ðappellant,ò ò€ó óWilliam€Isaac€Eaton,€for€which€execution€may€issue€if€necessary.Ð ”ä ÐÌÌÌà  àà ` àà ¸ àà  àà h àà À àà  à___________________________________€Ð H!˜ Ðà  àà ` àà ¸ àà  àà h àà À àà  àDAVID€R.€FARMER,€JUDGE