Motel Chain Pays For Shooting In Franchisee’s Lot
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Days Inn of America, Inc., a national motel chain, has agreed to pay $600,000 to a 65 year old Delaware man who was shot in the stomach at the Selma Days Inn. This is true even though the Selma Days Inn was owned and operated by a franchisee separate and apart from Days Inn of America, Inc. The national chain, Days Inn of America, Inc., did not own the Selma motel property nor did any of its employee’s work at the Selma location.
The case is unusual in that it extended liability for the shooting to the franchiser who was not actively engaged in the day to day business of the Selma Days Inn, a completely separate entity.
Days Inn of America collected 6.5 percent of the gross revenues taken in by the Selma Days Inn. The national chain argued that it was a separate entity and that it did not maintain sufficient control over the local franchisee such as to establish an agency relationship.
When the case was called for trial, the Trial Judge refused to dismiss Days Inn of America, Inc., holding that evidence was sufficient to establish control on the part of the national chain and held that it must go to trial on the plaintiff’s claim.
The victim showed that the national chain controlled the local franchisee with, among other things, with its policy manual which was several hundred pages long and under which the chain controlled almost every aspect of the day to day operation of the Selma Days Inn. This policy manual covered everything from site planning to placement of wastebaskets. The chain could make surprise audits and inspections and could impose sanctions upon the franchisee if it did not strictly comply with the policy manual. The chain could deduct points for employees who were not friendly, healthful or courteous. It could require periodic training of the franchisee’s employees, including managers, who were required to wear specific uniforms.
The one area not specifically dealt with in the manual was guest safety. The victim’s lawyer argued that the chain's failure to address security did not relieve it of liability for the negligence of the franchisee. The Trial Court agreed.
Both the local motel and the franchisee were liable to the victim because the area of Exit 97 off Interstate 95 where the Selma Days Inn was located had a long history of criminal activity including a pair of armed robberies at a hotel next door just two weeks before the victim was shot. Evidence would have been that the motel franchisee and the chain failed to take adequate precautions to protect their guest, including the victim.
After the Judge refused to release the national chain, the defendants agreed to $600,000 to settle the case.