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Schlotzsky's Inc. v. Hyde

Because the franchisor did not control the franchisee's daily activities, the franchisor was not vicariously liable for the franchisee's serving tainted food to the plaintiffs.

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In these consolidated cases, the appellees allege they contracted Hepatitis A from eating tainted food at a Schlotzsky’s Deli franchise owned and operated by Tidwell Food Company, Inc. Both Schlotzsky’s, Inc., and the appellees moved for summary judgment on whether Schlotzsky’s, as franchisor, was vicariously liable under an actual agency theory for Tidwell Food Company’s alleged negligence. The trial court denied Schlotzsky’s motion and granted partial summary judgment to appellees Mary and David Hyde and Beatrice Coker in Case No. A00A1172; to Kathleen Cone in Case No. A00A1173; and to Claudia Gunselman in A00A1174. In each case, the trial court found that the franchise agreement and operations manual gave Schlotzsky’s the right to control the time, manner, method, and means of the franchisee’s work and Schlotzsky’s was, therefore, vicariously liable for any negligence by the franchisee. We disagree and reverse the decisions of the court below.

Summary judgment is proper when there is no genuine issue of material fact and the movant is entitled to judgment as a matter of law. OCGA § 9-11-56 c. A de novo standard of review applies to an appeal from a grant of summary judgment, and we view the evidence, and all reasonable conclusions and inferences drawn from it, in the light most favorable to the nonmovant.

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