Can a principal recover any secret profits from an agent in an action for fraud?

An agent is not entitled to make any secret profit out of the subject of his agency. (Savage v. Mayer (1949), 33 Cal.2d 548, 551, 203 P.2d 9.) 'All benefits and advantages acquired by the agent as an outgrowth of the agency, exclusive of the agent's agreed compensation, are deemed to have been acquired for the benefit of the principal, and the principal is entitled to recover such benefits in an appropriate action. * * * [T]he principal's right to recover does not depend upon any deceit of the agent, but is based upon the duties incident to the agency relationship and upon the fact that all profits resulting[232 Cal.App.2d 617] from that relationship belong to the principal. Thus section 3343 of the Civil Code, which provides the measure of damages in a suit based upon fraud in the sale or exchange of property, does not operate to limit a principal's recovery to those damages even though the profits may have been acquired through fraudulent representations to him.' (Savage v. Mayer, supra, at p. 551, 203 P.2d at p. 10; accord Rodes v. Shannon (1963), 222 Cal.App.2d 721, 725, 35 Cal.Rptr. 339.) Thus there can be a full recovery of any secret profits in an action for damages for fraud. Therefore, as the matter of secret profits were properly before the jury the giving of special interrogatory No. 10 could not and did not result in any prejudice to defendants.

The court did not err in submitting the interrogatories.

3. Order of Trial.