Court Watch

The United States District Court for the District of Utah recently denied a defendant hotel franchisor's motion for summary judgment to dismiss the plaintiff hotel guests' claims of liability against the franchisor resulting from an outbreak of Legionnaire's disease in the hotel. In Licari v. Best Western Int'l, Inc., No. 2:11-cv-603, 2013 U.S. Dist. LEXIS 97725 (D. Utah July 12, 2013), the plaintiff husband and wife brought claims against Best Western International, Inc., the franchisor, and the owners and operators of the Utah hotel where the outbreak allegedly occurred. Plaintiffs alleged the wife contracted Legionnaire's disease while visiting the hotel, allegedly caused by the hotel's failure to properly maintain its potable water system. The plaintiffs alleged the franchisor was liable for their damages under direct and vicarious liability theories.

After granting the franchisor dismissal of the plaintiffs' claims based on direct liability, holding the franchisor did not owe a duty of care to the plaintiffs, the court next examined whether the doctrine of respondeat superior , or vicarious liability, would impose liability under Utah law. To determine whether the franchisor could be vicariously liable for the failure to maintain the hotel water system, the court examined the level of control exercised by the franchisor over the hotel, ultimately holding that significant fact questions existed to warrant a denial of the franchisor's motion related to whether the franchisee was an actual or apparent agent of the franchisor.