Is it irrelevant whether the principal knew or had reason to know its agent was tortiously acting tortiously?

Provided the agent acted within the scope of his authority, it is irrelevant whether the principal knew or had reason to know its agent was acting tortiously. As the court stated in Powell v. Goldsmith (1984) 152 Cal.App.3d 746, 751, 199 Cal.Rptr. 554, "Appellants state they relied completely on 'the honesty and integrity' of [their agent]. Their reliance and trust was misplaced. A principal cannot benefit from the fraud of its agents who is acting in the course and scope of his agency."