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Court Watch

By Susan H. Morton and David W. Oppenheim
September 01, 2003

Franchisor Could Be Liable for Franchisee Negligence Under Actual Agency Theory

A Florida appellate court has ruled that a franchisor may have been liable for the negligence of its franchisee and the franchisee's employee under the theory that the franchisee was an actual agent of the franchisor. Patricia M. Font, et al. v. Stanley Steemer International, Inc., CCH Bus. Fran. Guide Par. 12,611 (Fl.Dist.Ct.App. 2003).

After Howard Font was killed in a collision with a van driven by an employee of a Stanley Steemer carpet cleaning franchisee, his estate sued Stanley Steemer as well as the franchisee and its employee, alleging that Stanley Steemer was vicariously liable for the negligence of the franchisee or the employee based on actual or apparent agency. The lower court granted Stanley Steemer's motion for summary judgment on the agency issue, and the plaintiff appealed. The Florida appellate court reversed the lower court's decision.

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