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August 31 - Newsblog #1
Your Injury Attorneys in the News: Homeowner and Wife Sue over Police Shooting
September 7 - Newsblog #2
Your Injury Attorneys in the News: Homeowner’s Possession of Handgun Legal Under 2nd Amendment
September 14 - Newsblog #3
Your Injury Attorneys in the News: if a Government or Government Agency is at Fault, You Can Sue
September 21 - Newsblog #4
Your Injury Attorneys in the News: Lawsuit Against Police Department Invokes the Civil Rights Act
September 28 - Newsblog #5
Your Injury Attorneys in the News: a Clear Line from the Action – or Inaction – to the Injury
October 12 - Newsblog #6
Your Injury Attorneys in the News: Police Insensitivity Turns Traffic Stop into a Travesty
October 19 - Newsblog #7
Your Injury Attorneys in the News: Police Who Abuse Power Must Be Held Accountable, Law Professor States
October 26 - Newsblog #8
Your Injury Attorneys in the News: Holding Overly Aggressive Police Accountable
November 2 - Newsblog #9
Your Injury Attorneys in the News: Brown Vs. Impd Case About Much More Than Punishment or Money
November 9 - Newsblog #10
Your Injury Attorneys in the News: Improper Medical Diagnosis and Care Resulted in Loss of an Eye
November 16 - Newsblog #11
Your Injury Attorneys in the News: Medical Malpractice Claims Have a Front End and a Back End
November 30 - Newsblog #12
Your Injury Attorneys in the News: Truths About Medical Malpractice
December 7 - Newsblog #13
Your Injury Attorneys in the News: Yes, You Can Sue City Hall
December 14 - Newsblog #14
Your Injury Attorneys in the News: Slip and Fall Changes Two Lives Forever
December 28 - Newsblog #15
In the News: Ramey & Hailey Year in Review
January 4 - Newsblog #16
In the News: Teen’s Sexual Abuse Case Calls Attention to the Problem
January 11 - Newsblog #17
In the News: Parents of Survivor Sue Parents of Shooter
January 18 - Newsblog #18
In the News: Erin Brockovich Teams Up with Indiana Moms
January 25 - Newsblog #19
Your Injury Attorneys in the News: Case Settled in Favor of Catastrophic Slip and Fall Injury Victim
February 1 - Newsblog #20
In the News: Wrongful Death Lawsuit Filed Against Rehab Facility
February 8 - Newsblog #21
In the News: Nurse Arrested in Sexual Abuse Case
February 15 - Newsblog #22
In the News: Running the Clock on Indiana Medical Malpractice
February 22 - Newsblog #23
In the News: to Repeal or Not to Repeal – Indiana Legislators Rule “not”
March 1 - Newsblog #24
In the News: Helping Physicians Keep Helping
March 8 - Newsblog #25
In the News: Parents of Brain-damaged Infant Sue Hospital
March 15 - Newsblog #26
In the News: Owner of Gun Wins Decision
March 22 - Newsblog #27
In the News: Indiana House Passes Long Term Care Protections Bill
April 5 - Newsblog #28
In the News: Slip-and-fall Victim Wins Right to Sue Dollar Tree
April 12 - Newsblog #29
In the News: Inspection Report Shows Vets Harmed at 52 Nursing Homes
April 19 - Newsblog #30
In the News: Sandwich Diversion Causes Fatal Two-semitrailer Crash
April 26 - Newsblog #31
In the News: Does Premises Liability Cover Goose Attacks?
May 3 - Newsblog #32
Two-week-old N.y. Verdict Offers Takeaways for Slip and Fall Victims
May 10 - Newsblog #33
In the News: $7.8 Million Construction Injury Settlment Highlights Rash of New Contruction Accidents
May 17 - Newsblog #34
In the News: Barrel Blast Triggers Wrongful Death Lawsuit
May 24 - Newsblog #35
In the News: when a Product Manufacturer is Not at Fault
May 31 - Newsblog #36
In the News – College Doc’s Sexual Abuse of Students Coming to Light
June 7 - Newsblog #37
In the News – One Week, Four Motorcycle Accidents
June 14 - Newsblog #38
List of Troubled Nursing Homes Released
June 21 - Newsblog #39
In the News: Kansas No-caps Ruling Changes Personal Injury Climate
June 28 - Newsblog #40
In the News: Jury Awards $10.5 Million for Pain and Suffering in Birth Injury Case
July 5 - Newsblog #41
In the News: More Indicted in Last Year’s Duck Boat Tragedy
July 17 - Newsblog #42
In the News: Richard Hailey on Litigation Team for Lawsuit Vs. Tesla
July 24 - Newsblog #43
In the News: Malpractice Lawsuit Yields Largest Award in History
August 28 - Newsblog #44
In the News: Trucks V. Passenger Cars – Score 18:116. Everybody Loses
September 25 - Newsblog #45
Yes, Sex Trafficking is Happening in Indiana
October 30 - Newsblog #46
In the News: Product Liability Cases in 2019
November 13 - Newsblog #47
In the News: Arbitration Clauses Allowed in Indiana Nursing Home Contracts
November 27 - Newsblog #48
In the News: $101 Million Birth Injury Settlement Awarded
December 4 - Newsblog #49
In the News: High School Chaplain Suspended on Allegations of Sexual Abuse
December 11 - Newsblog #50
In the News: Franklin, Indiana Continues to Face Toxic Waste Problem
December 18 - Newsblog #51
In the News: Parents of Bus Accident Victim Awarded $20 Million
January 8 - Newsblog #52
In the News: Parents Sue After Daughter’s Brain Damaged in Surgery
January 29 - Newsblog #53
In the News: Trucking Accidents Due to Careless Driving Increase
February 19 - Newsblog #54
Indiana Authorities Buy More Time to Prosecute Child Abusers
February 26 - Newsblog #55
In the News: Teen Brain-injured at Birth Awarded $15.1 Million
March 4 - Newsblog #56
In the News: Did Connecticut School Officials Turn a Deaf Ear to Sexual or Physical Abuse?
March 18 - Newsblog #57
In the News: Facility Held to Blame for Medical Treatment Delivered in a Careless and Negligent Manner
April 1 - Newsblog #58
In the News: Emergency Measures Instituted in Indiana’s Judicial System
April 8 - Newsblog #59
In the News: Medical Malpractice Limits Challenged in California
April 15 - Newsblog #60
In the News: Indiana Supreme Court Issues Five Orders for Legal Proceedings
May 6 - Newsblog #61
In the News: Nursing Homes with Covid-19 Cases Have Been Violating Federal Infection Control Rules for Years
May 13 - Newsblog #62
In the News: Physician Not Negligent in Choosing One Treatment over Another
June 3 - Newsblog #63
In the News: Indiana Undercounting Covid-19 Deaths?
June 17 - Newsblog #64
In the News: Ruling Reverse on Police Shooting – New News, Old Story?
July 8 - Newsblog #65
In the News: What is This Thing Called Qualified Immunity?
July 15 - Newsblog #66
In the News: Sooner or Later for Virus-delayed Jury Trials
July 29 - Newsblog #67
In the News: Truck Driver Sentenced, Another Charged in Fatal Crashes
August 12 - Newsblog #68
In the News: Double-booked Doctors Cause Personal Injury to Patients
August 26 - Newsblog #69
In the News: $4.9m Auto Accident Settlement Teaches Many Lessons
September 2 - Newsblog #70
In the News: Negligence Unmasked at Pennsyvania Trial
September 9 - Newsblog #71
In the News: Double-booked Doctors Cause Personal Injury to Patients
September 27 - Newsblog #72
In the News: Heart Rhythm Drug Poisoned Patient’s Lungs
October 14 - Newsblog #73
In the News: Prisoner Vs. Prison – a Tale of Two Medical Negligence Lawsuits
October 28 - Newsblog #74
In the News: Richard Hailey Serves As Co-counsel in Tragic Texas Medical Malpractice Case
November 4 - Newsblog #75
In the News: Mesothelioma Trials Move Ahead, Pandemic Notwithstanding
November 4 - Newsblog #76
In the News: Richard Hailey Serves As Co-counsel in Tragic Medical Malpractice Case
November 4 - Newsblog #77
In the News: Mesothelioma Trials Move Ahead, Pandemic Notwithstanding
November 18 - Newsblog #78
In the News: Two-year-old Shoots Mom in Tragic Reminder of the Need for Safe Storage of Guns
December 30 - Newsblog #79
In the News: when ‘ghost Guns’ Cause Real Deaths
January 13 - Newsblog #80
In the News: when Police Dogs Cause Personal Injury to the Innocent
January 27 - Newsblog #81
In the News: Old List of Six Proves Very Relevant Today
February 24 - Newsblog #82
In the News: Indiana Nursing Homes Shielded from Covid-19 Liability Suits 

March 10 - Newsblog #83
In the News: Online Hunters out to Halt Child Abuse
March 17 - Newsblog #84
In the News: Toxic Talc Still a Problem
April 14 - Newsblog #85
In the News: Va Hospital Wrongful Death Verdict Increased After-the-fact
April 14 - Newsblog #86
Think You Don’t Need a Doctor After Being Hit by a Car? Think Again!
May 5 - Newsblog #87
In the News: Historic Police Reform and Training Bill Signed into Law
June 2 - Newsblog #88
In the News: Shaquille Kelly Shot by Police in Ft. Wayne
June 9 - Newsblog #89
In the News: Cement Plant to Pay $700k for Spewing Pollutants
June 16 - Newsblog #90
In the News: Estate of Man Killed by Police Sues Indianapolis
July 7 - Newsblog #91
In the News: Vehicular Homicide Result of Impairment and Speed
July 28 - Newsblog #92
In the News: Two Recent Drownings Call Attention to Dangers 

July 28 - Newsblog #93
Driving Phobia Ptsd Can Be Grounds for a Personal Injury Lawsuit
August 4 - Newsblog #94
In the News – Sexual Abuse Claim Ruled Outdated
August 18 - Newsblog #95
In the News – New Study Questions Pollution Levels in Franklin, Indiana
September 1 - Newsblog #96
In the News – Two Corporations Punished for Failure to Warn
September 8 - Newsblog #97
In the News – Tesla Autopilot Investigation Highlights Product Liability Issues
October 27 - Newsblog #98
In the News – Irish Hospital Apologizes to Six Year Old for Medical Injury
November 3 - Newsblog #99
In the News – Nursing Homes Fail to Report Covid-19 Deaths to Osha
November 11 - Newsblog #100
In the News: Bicycle Injuries and Fatalities Hit Home in Indiana
December 15 - Newsblog #101
In the News: Children Killed by Dui – the Wrongest of Wrongful Deaths
December 22 - Newsblog #102
In the News: Parents of Girl Who Drowned Sue City of Princeton
January 5 - Newsblog #103
In the News: 50 Indiana Children Dead of Neglect and Abuse in 2020
January 19 - Newsblog #104
Did Church Protect Pastor, Not Children?
February 16 - Newsblog #105
In the News: $10 Million Verdict in Rv/pedestrian Accident
March 30 - Newsblog #106
In the News: Carmel Priest Suspended for Alleged Child Abuse
April 20 - Newsblog #107
In the News: the Effects of Child Abuse – Way Beyond Blue Water or Pinwheels

Litigation Newsletter

Franchisors Might be Liable for Franchisee Actions

An increasing array of goods and services are offered through “franchises.” Franchising is not a new concept, but it has exploded in popularity; according to statistics compiled by Price Waterhouse Coopers in 2005 (the latest year for which data was available), franchising is a business model used in over 70 industries in the United States which generates over $2.3 trillion in U.S. sales annually. In a franchise arrangement, entities with a nationally recognized name enter into relationships with others to market goods and/or services under the recognized name.

The entity with the recognized name is the “franchisor” and the actual seller of goods and/or services is the “franchisee.” The relationship is usually detailed in a franchise agreement between the parties. Commonly, the franchisee is a separate and independent entity, with the franchisor exercising varying degrees of control over the activities and the goods and/or services offered.

“Agency” Liability

Many courts and legal authorities believe that those injured as a result of the wrongful actions of others should be made “whole,” or in other words, restore the victim to the same condition or position they were in prior to the injury. As wrongful acts are often committed by those who are unable to pay a judgment, courts and attorneys have expanded the scope of liability to include others connected to the wrongdoer with the greater ability to pay, often called “deep pockets.”
One method of expanding the scope of liability has been through the principle of “agency.”

It has long been established that employers may be held vicariously liable for the wrongful acts of their employees committed in the course of employment, under the doctrine of respondeat superior, i.e., the master must answer for the actions of a servant. As one court has put it, vicarious liability is a form of liability without fault; imposition of liability on an innocent person for the wrongful conduct of another based on the existence of an agency relationship. It is generally imposed, however, only where the “principal” (such as an employer) has control of, or the right to control, the conduct of the “servant”(employee).

Franchisor Liability Based on Agency Relationships

Courts have extended the principles of vicarious liability to franchisors, over the objections of franchisors that extending liability is inappropriate, since franchisees are usually independent entities. An individual injured at a franchise location or as a result of the products or services provided, may, under certain circumstances, bring an action against the franchisor as well as the franchisee.

For example, a franchisee of Arby’s Inc. in Wisconsin hired a work release inmate (i.e., an inmate granted the right to work outside the prison). The inmate walked off the job and crossed the street to a Wal-Mart, where he waited for, then shot, his former girlfriend and her fiancé before committing suicide. The fiancé died and the woman survived, suffering severe impairment as a result of her injuries. Arby’s was sued along with the franchisee.

The 2004 Wisconsin Supreme Court opinion in the case surveys various state cases on imposing franchisor liability based on franchisee agency. The court concluded that, in general, a franchisor may be held vicariously liable for the tortuous conduct of its franchisee (in this case, negligence in hiring and supervising the inmate) only if the franchisor has control or a right of control over the daily operation of the specific aspect of the franchisee’s business alleged to have caused the harm. After examining the franchise agreement, the Court concluded that Arby’s had little or no control over hiring and supervising, and therefore could not be held vicariously liable. Similarly, a 2000 New York court decision refused to extend liability to Dunkin’ Donuts when a franchisee employee was severely injured in a robbery, as the franchisor did not control the security at the franchise location.

An Oregon case, however, held that McDonald’s could be held liable for damages that resulted when a sapphire was found in a “Big Mac” at a franchisee restaurant. Similarly, a federal court in Illinois certified a class action by males against the restaurant franchisor Hooters Inc., as well its franchisees, for sexual discrimination in refusing to hire male employees. The court found that Hooters Inc. controlled the chain’s “core concept” of females waiting tables wearing cut-offs, tank tops, and orange jogging shorts, and thus could be held vicariously liable.

Apparent Agency as a Basis for Franchisor Liability

The existence of an agency relationship, however, is not the only basis courts have used to impose liability on franchisors. In some states liability based on “apparent” or “implied” agency has been allowed. Agency liability focuses on the actual relationship, while apparent authority examines what the victim “reasonably believed” based upon circumstances, such as the actions of the franchisor and franchisee.

Under this theory, the franchisor is prohibited (“estopped”) from denying the agency relationship and the authority of the franchisee to act for the franchisor because of its conduct. Factors necessary to establish apparent authority differ among states, but may include:

  • The franchisor represented to others that the franchisee was acting on its behalf, or the franchisor consented to, or knowingly acquiesced to, a franchisee’s exercise of authority.
  • A third party reasonably relied on the representation or had a good faith belief that the franchisee had the right to exercise authority for the franchisor.
  • As a result of the reliance, the victim acted and was damaged.

In a 1993 case, the Illinois Supreme Court allowed a victim of medical malpractice to sue a hospital for the actions of an emergency room doctor, whom the hospital claimed was an “independent contractor.” The court found factors indicating the hospital had held the doctor out as its employee, hence “apparent agency” applied. In a later case, a patron of a McDonald’s restaurant slipped on water or ice in the bathroom. The court allowed the case to be dismissed, but affirmed that a plaintiff may sue the franchisor where reliance on apparent agency can be shown.

In a 1995 decision, however, the Florida Supreme Court upheld judgment for Mobil Oil Corporation when a patron of a franchisee filling station was attacked and severely beaten by the franchisee’s employee. The Court found there was not even a “minimum level of apparent authority” as a basis for Mobil liability, despite the required use of Mobil symbols and logos by the franchisee, the selling of Mobil products, and the Mobil logo on the employee’s uniform.

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