Who’s in Control Here? California’s Supreme Court Establishes New Standards for Potential Franchisor Liability for Employee Tort Claims

On August 28, 2014, the Supreme Court of California, in Patterson v. Domino’s Pizza, LLC, decided whether a franchisor was entitled to summary judgment on the plaintiff’s claims that the franchisor was vicariously liable for alleged tortious conduct by the franchisee’s employee. In a 4-3 decision, the court held that a franchisor becomes potentially liable for the actions of a franchisee’s employees only if the franchisor: