Hoover v. Sun Oil Co.
Citation
212 A.2d 214 (Del. Super. Ct., 1965)
Facts
A service station owner sought damages from an oil company after a station employee used the wrong fuel, causing a fire and injuries. The court examined the degree of control exercised by Sun Oil (the franchisor) over the franchisee’s day-to-day operations. The franchisor set many standards but did not control the specific operational detail that caused the harm.
Issue
Whether Sun Oil, as franchisor, was vicariously liable for the negligence of the franchisee’s employee based on the degree of control Sun Oil exercised over the franchise operation.
Holding
The court held that Sun Oil was not vicariously liable because it did not exercise sufficient control over the franchisee’s daily operations to create an agency relationship.
Rule
A franchisor may be vicariously liable for a franchisee’s torts if the franchisor exercises sufficient control over the day-to-day operations; absence of control on key details defeats liability.