The blurry line between agent, independent contractor and employee can be used against you if you do not understand the differences and put it in writing.
Posted: December 11, 2017 | Author: Recreation Law | Filed under: Minors, Youth, Children, New Jersey, Summer Camp | Tags: Apparent Authority, appearance of authority, Brochure, campers, citation omitted, Contractor, discovery, Duty of care, genuine, golf, Golf Camp, golf club, hired, home builder, Independent Contractor, logo, Marketing, master-servant, minor child, mouth, New Jersey Professional Golf Association, NOLS, non-moving, Outward Bound, PGA NJPGA, planning, Professional Golf Association, professional golfer, renewed, Respondeat Superior, servant, Standard of review, Summary judgment, Summer Camp, supposed, YMCA, Youth Camp | Leave a commentThe use of the PGA name was not enough to tie the PGA to a golf camp where they had no relationship or control. As such, they were dismissed from the suit because they had no duty to the injured minor.
Choi and Keane v. Hunterdon County YMCA, Inc., et. al., 2017 N.J. Super. Unpub. LEXIS 2737
State: New Jersey, Superior Court of New Jersey, Appellate Division
Plaintiff: Seung Yon Choi and Gerald J. Keane on behalf of E.K., a Minor as Guardian Ad Litem, and Seung Yon Choi, and Gerald J. Keane, individually, Plaintiffs-Appellants
Defendant: Hunterdon County YMCA, Inc., Michael Trianio, Chris Nallen, Alex Baker, Erica Croat, The New Jersey Professional Golfers Association, Inc. (NJPGA), James Mullen, Defendants, and The Professional Golfers Association, Inc.
Plaintiff Claims: negligent supervision
Defendant Defenses: no relationship to create an agency
Holding: for the defendant
Year: 2017
Summary
A minor was injured by another camper at a golf camp. The parents sued everyone involved including the PGA. The PGA filed a motion to dismiss because they had nothing to do with the camp.
The motion was granted because there was no legal relationship between the camp and the PGA. The use of the PGA logo by the camp in its brochure was not enough, if allowed by the PGA, to establish liability.
Facts
The minor, age 5, was enrolled in a YMCA golf camp. The golf camp in its brochure advertised the camp would be run or the instructors would be PGA professionals. The PGA logo was used on the brochure.
The minor was struck in the face by a golf club swung by another minor at the camp. The parents sued the defendants listed above for negligent supervision. Prior to this motion, the plaintiff settled with all the defendants except the PGA (Professional Golf Association). The PGA filed a motion for summary judgment arguing it owed no duty of care to the minor plaintiff. The motion was granted by the court, and the plaintiff’s appealed.
Analysis: making sense of the law based on these facts.
The issue was the involvement of the PGA in the operation and control of the camp. The PGA argued they had nothing to do with the camp, almost indicating their name and logo had been used without their permission.
The parents argued two issues. The PGA was liable under the theory of respondeat superior and camp, and the professional golfer hired by the camp had apparent authority to act for the PGA.
The phrase respondeat superior means the employer could be found liable for the acts of an employee, if at the time of the occurrence the employee was acting within the scope of his or her employment. The easiest example of this is you have an employee who in their personal car goes to collect the company mail at the post office. On the way back to the office the employee has a car accident where the employee is at fault. The employer is liable for the acts of the employee because he or she was working or doing work for the employer at the time of the accident.
Under respondeat superior, an employer can be found liable for the negligence of an employee causing injuries to third parties, if, at the time of the occurrence, the employee was acting within the scope of his or her employment.” To establish liability, a plaintiff must show “that a master-servant relationship existed.” “If no master-servant relationship exists, no further inquiry need take place because the master-servant relationship is sine qua non to the invocation of respondeat superior.”
If you have employees do this make sure you have non-owned auto coverage under your company business insurance or purchase a business automobile policy.
In this case, the professional golfer hired to instruct at the camp was an independent contractor of the YMCA and not employed by the PGA. The master servant relationship was created because the professional golfer was an independent contractor of the YMCA and did not work for the PGA.
The record indicates Nallen was hired by the NJ Golf Foundation as an independent contractor to run the YMCA’s Golf Camp. The NJ Golf Foundation paid Nallen $2700 for his services, which was reflected in an IRS form 1099-MISC used for reporting income paid to independent contractors. The PGA is not mentioned in the agreement signed by the YMCA and the NJPGA. Plaintiffs failed to offer any evidence that would show, or even create a
genuine dispute of fact, that Nallen was in a master-servant relationship with the PGA. We agree with the trial court that a master-servant relationship was not established merely because Nallen was a professional golfer who had competed in PGA events as a member of the PGA.
The second theory was there was an apparent agency between the PGA and the professional golfer.
If a principal cloaks an independent contractor with apparent authority or agency, the principal can be held liable as if the contractor were its own employee if it held out the contractor to the plaintiff as its own servant or agent.” Liability may be imposed on the principal based upon “apparent authority” when “the principal’s actions have misled a third-party into believing that a relationship of authority in fact exists.”
The issue is the principal, in this case the PGA must cloak the agent, the professional golfer with the authority to do something on behalf of the principal.
Liability arises if “the principal has by his voluntary act placed the agent in such a situation that a person of ordinary prudence, conversant with business uses, and the nature of the particular business, is justified in presuming that such agent has the authority to perform the particular act in question.”
Because the PGA did nothing, possibility did not even know about the camp, the PGA could and did not cloak the professional golfer with any authority to do anything.
To satisfy its burden of establishing the apparent authority or apparent agency relationship, plaintiffs had to establish: “(1) that the appearance of authority has been created by the conduct of the alleged principal and it cannot be established ‘alone and solely by proof of [conduct by] the supposed agent,’ (2) that a third party has relied on the agent’s apparent authority to act for a principal, and (3) that the reliance was reasonable under the circumstances.”
This prevents the principals of the world from being drug into every lawsuit any blowhard could create. You have no control over the people walking around saying they work for you, you may not even know they are saying it let alone even know they exist. Therefore, their actions cannot drag you into litigation that you have no knowledge of.
By contrast, there was no evidence of voluntary conduct on the part of the PGA to create an appearance that the YMCA or Nallen had authority to act for the PGA. Indeed, there was no evidence the PGA was involved in any aspect of the planning or administration of the YMCA’s camp. There was no evidence the PGA was even aware of the use of its logo or name in the YMCA’s brochure prior to this lawsuit, let alone that it authorized its use for the YMCA’s marketing purposes. Again, the appearance of authority “cannot be established ‘alone and solely by proof of [conduct by] the supposed agent[.]'”
Since there were no acts or actions on the part of the PGA they were allowed to be dismissed from the suit.
So Now What?
I suspect that the PGA is going to maintain a closer hold on the use of its name in the future. I also suspect that in a couple of states, this might have had more traction. The PGA, like many other organizations, works hard to uphold the values and qualifies its name represents. Consequently, legitimacy can be provided to a program or camp by using its name.
The same issues appear in the outdoor recreation world. I just finished an article where name NOLS was used to describe a program, that was not a NOLS program. NOLS and Outward Bound represent the top tier of outdoor training in the US short of the AMGA for more technical skills. As such always be a little suspicious when their names are bandied about. Is it truly a course being offered by them or are they using the name to provide legitimacy to what they are trying to do.
The other issue is who has authority to do what for your business or program. Keep your eyes and ears open for the use of your name by anyone.
Finally, this might have gone another way if there was not a written agreement between the professional golfer and the camp. Everyone wants to blur the lines when there is an injury. The IRS lives on blurred lines when taxes are not filed. If you hire independent contractors, you should look at hiring them with a written contract.
At the same time, hiring independent contractors to do the work of employees will also get you in hot water. If in the industry, normally employees do the work that your “independent contractors” are doing, you will be writing big checks to the IRS, Workers Compensation and to the employees themselves.
What do you think? Leave a comment.
Copyright 2017 Recreation Law (720) 334 8529
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Choi and Keane v. Hunterdon County YMCA, Inc., et. al., 2017 N.J. Super. Unpub. LEXIS 2737
Posted: November 29, 2017 | Author: Recreation Law | Filed under: Legal Case, Minors, Youth, Children, New Jersey, Summer Camp | Tags: Apparent Authority, appearance of authority, Brochure, campers, citation omitted, Contractor, discovery, Duty of care, genuine, golf, Golf Camp, golf club, hired, home builder, Independent Contractor, logo, Marketing, master-servant, minor child, mouth, New Jersey Professional Golf Association, non-moving, PGA NJPGA, planning, Professional Golf Association, professional golfer, renewed, Respondeat Superior, servant, Standard of review, Summary judgment, Summer Camp, supposed, YMCA, Youth Camp | Leave a commentChoi and Keane v. Hunterdon County YMCA, Inc., et. al., 2017 N.J. Super. Unpub. LEXIS 2737
Seung Yon Choi and Gerald J. Keane on behalf of E.K., a Minor as Guardian Ad Litem, and Seung Yon Choi, and Gerald J. Keane, individually, Plaintiffs-Appellants, v. Hunterdon County YMCA, Inc., Michael Trianio, Chris Nallen, Alex Baker, Erica Croat, The New Jersey Professional Golfers Association, Inc., James Mullen, Defendants, and The Professional Golfers Association, Inc., Defendant-Respondent.
DOCKET NO. A-5375-15T2
SUPERIOR COURT OF NEW JERSEY, APPELLATE DIVISION
2017 N.J. Super. Unpub. LEXIS 2737
September 19, 2017, Submitted
November 1, 2017, Decided
NOTICE: NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION.
PLEASE CONSULT NEW JERSEY RULE 1:36-3 FOR CITATION OF UNPUBLISHED OPINIONS.
PRIOR HISTORY: [*1] On appeal from Superior Court of New Jersey, Law Division, Hunterdon County, Docket No. L-0159-14.
CORE TERMS: golf, independent contractor, apparent authority, logo, summary judgment, master-servant, brochure, professional golfer, citation omitted, summer camp, duty of care, standard of review, respondeat superior, appearance of authority, home builder, contractor, non-moving, marketing, supposed, planning, servant, genuine, hired, golf club, minor child, discovery, renewed, campers, mouth
COUNSEL: Carter, Van Rensselaer and Caldwell, attorneys for appellant (William J. Caldwell, on the brief).
Cascio & Capotorto, attorneys for respondent (Jeffrey A. Savage, on the brief).
JUDGES: Before Judges Yannotti and Leone.
OPINION
PER CURIAM
This action arises out of injuries sustained by a five-year-old girl, E.K., while attending a golf camp. Plaintiffs, E.K.’s parents Seung Yon Choi and Gerald J. Keane, brought suit on their own behalf and on behalf of E.K. They appeal from a June 28, 2016 order granting summary judgment to defendant Professional Golfers Association of America, Inc. (PGA). We affirm.
I.
In the summer of 2013, plaintiffs enrolled E.K. in a summer “Golf Camp” offered by defendant Hunterdon County YMCA, Inc. (YMCA). The YMCA summer camp brochure’s description of the Golf Camp stated that “PGA (Professional Golf Association) Professionals will provide a friendly and relaxing environment where your child can learn the fundamentals of” golf, and that “campers will spend half of the day with PGA professionals playing golf[.]” The PGA’s logo was displayed above the description of the Golf Camp in the [*2] brochure.
On July 27, 2013, E.K. was accidentally struck in the mouth by a golf club swung by another minor child. E.K. sustained injuries to her face and mouth including the loss of multiple baby teeth.
Plaintiffs filed suit against multiple defendants including the YMCA and several of its employees; Chris Nallen, the professional golfer hired as an instructor at the camp; the parents of the minor child that hit E.K. with the golf club; the New Jersey Professional Golfers Association, Inc. (NJPGA); the New Jersey Golf Foundation, Inc. (NJ Golf Foundation); the PGA Foundation; and the PGA. In their amended complaint, plaintiffs alleged that E.K. would not have been injured but for the negligent supervision of the Golf Camp and the campers. Plaintiff also alleged that Nallen was a member, official, agent, servant, or independent contractor of the PGA, that the PGA had a duty to ensure Nallen would properly supervise the Golf Camp, and that the PGA was an independent contractor of the YMCA.
The PGA filed a motion for summary judgment. The motion was denied on January 28, 2016, because discovery had not yet been completed and the court wanted to give plaintiffs the opportunity to develop [*3] their claim against the PGA. Plaintiffs then settled with the NJPGA, NJ Golf Foundation, Nallen, and the YMCA and its employees. After the close of discovery, the PGA filed a renewed motion for summary judgment, arguing that it owed no duty of care to plaintiffs. On June 28, 2016, Judge Michael F. O’Neill granted the PGA’s renewed motion for summary judgment. Plaintiffs appeal.
II.
Summary judgment must be granted if “the pleadings, depositions, answers to interrogatories and admissions on file, together with affidavits, if any, show that there is no genuine issue as to any material fact challenged and that the moving party is entitled to a judgment or order as a matter of law.” R. 4:46-2(c). The court must “consider whether the competent evidential materials presented, when viewed in the light most favorable to the non-moving party, are sufficient to permit a rational factfinder to resolve the alleged disputed issue in favor of the non-moving party.” Brill v. Guardian Life Ins. Co. of Am., 142 N.J. 520, 540, 666 A.2d 146 (1995). “[T]he court must accept as true all the evidence which supports the position of the party defending against the motion and must accord [that party] the benefit of all legitimate inferences which can be deduced therefrom.” Id. at 535 (citation and internal [*4] quotation marks omitted).
An appellate court “review[s] the trial court’s grant of summary judgment de novo under the same standard as the trial court.” Templo Fuente De Vida Corp. v. Nat’l Union Fire Ins. Co., 224 N.J. 189, 199, 129 A.3d 1069 (2016). We must hew to that standard of review.
Based on our standard of review, we affirm substantially for the reasons set forth in Judge O’Neill’s thoughtful and well-reasoned decision issued on June 28, 2016. We add the following.
III.
“[A] negligence cause of action requires the establishment of four elements: (1) a duty of care, (2) a breach of that duty, (3) actual and proximate causation, and (4) damages.” Jersey Cent. Power & Light Co. v. Melcar Util. Co., 212 N.J. 576, 594, 59 A.3d 561 (2013). “The determination of the existence of a duty is a question of law for the court.” Petrillo v. Bachenberg, 139 N.J. 472, 479, 655 A.2d 1354 (1995). “Under respondeat superior, an employer can be found liable for the negligence of an employee causing injuries to third parties, if, at the time of the occurrence, the employee was acting within the scope of his or her employment.” Carter v. Reynolds, 175 N.J. 402, 408-09, 815 A.2d 460 (2003). To establish liability, a plaintiff must show “that a master-servant relationship existed.” Id. at 409. “If no master-servant relationship exists, no further inquiry need take place because the master-servant relationship is sine qua non to the invocation of respondeat superior.” ]Ibid.
The record indicates Nallen was hired by [*5] the NJ Golf Foundation as an independent contractor to run the YMCA’s Golf Camp. The NJ Golf Foundation paid Nallen $2700 for his services, which was reflected in an IRS form 1099-MISC used for reporting income paid to independent contractors. The PGA is not mentioned in the agreement signed by the YMCA and the NJPGA. Plaintiffs failed to offer any evidence that would show, or even create a genuine dispute of fact, that Nallen was in a master-servant relationship with the PGA. We agree with the trial court that a master-servant relationship was not established merely because Nallen was a professional golfer who had competed in PGA events as a member of the PGA. See Basil v. Wolf, 193 N.J. 38, 62, 935 A.2d 1154 (2007) (a principal is generally immune from liability for the negligence of an independent contractor).
IV.
Plaintiffs argue that even if Nallen was an independent contractor, liability can still be imposed under the doctrine of apparent authority or agency. See Sears Mortg. Corp. v. Rose, 134 N.J. 326, 337-38, 634 A.2d 74 (1993). “If a principal cloaks an independent contractor with apparent authority or agency, the principal can be held liable as if the contractor were its own employee if it held out the contractor to the plaintiff as its own servant or agent.” Basil, supra, 193 N.J. at 63. Liability may be imposed on the [*6] principal based upon “apparent authority” when “the principal’s actions have misled a third-party into believing that a relationship of authority in fact exists.” Mercer v. Weyerhaeuser Co., 324 N.J. Super. 290, 317, 735 A.2d 576 (App. Div. 1999). Liability arises if “the principal has by his voluntary act placed the agent in such a situation that a person of ordinary prudence, conversant with business uses, and the nature of the particular business, is justified in presuming that such agent has the authority to perform the particular act in question.” Id. at 318 (citation omitted).
To satisfy its burden of establishing the apparent authority or apparent agency relationship, plaintiffs had to establish: “(1) that the appearance of authority has been created by the conduct of the alleged principal and it cannot be established ‘alone and solely by proof of [conduct by] the supposed agent,’ (2) that a third party has relied on the agent’s apparent authority to act for a principal, and (3) that the reliance was reasonable under the circumstances.” Ibid. (citations omitted).
Plaintiffs seek to impose liability on the PGA based on the use of the PGA logo and references to the PGA in the YMCA’s summer camp brochure. In Mercer, we reversed summary judgment granted to Weyerhaeuser, a [*7] large building and lumber supply company, because “[t]here was no dispute that Weyerhaeuser authorized [the home builder] to use its logo on [the home builder’s] business cards, brochures, press lists, correspondence and newspaper advertisements at the time that plaintiffs purchased their homes.” Mercer, supra, 324 N.J. Super. at 321. As such, there was a factual dispute over “whether plaintiffs relied on Weyerhauser’s conduct (lending [the home builder] its name and logo for marketing purposes) in deciding to purchase these homes[.]” Id. at 319.
By contrast, there was no evidence of voluntary conduct on the part of the PGA to create an appearance that the YMCA or Nallen had authority to act for the PGA. Indeed, there was no evidence the PGA was involved in any aspect of the planning or administration of the YMCA’s camp. There was no evidence the PGA was even aware of the use of its logo or name in the YMCA’s brochure prior to this lawsuit, let alone that it authorized its use for the YMCA’s marketing purposes. Again, the appearance of authority “cannot be established ‘alone and solely by proof of [conduct by] the supposed agent[.]'” Mercer, supra, 324 N.J. Super. at 318 (citations omitted).1
1 The PGA asserts the use of its logo was apparently authorized by the NJ Golf Foundation or the NJPGA, which contracted with the YMCA. Plaintiffs have not shown those entities were alter egos of the PGA.
Moreover, the PGA did not hold Nallen out as its agent or employee. Indeed, [*8] there was no evidence the PGA was involved in any aspect of the planning or administration of the YMCA’s camp. Thus, plaintiffs, unlike the plaintiffs in Mercer, have failed to meet their burden to show apparent authority. Therefore, we need not address whether plaintiffs relief on the alleged apparent authority, or whether that reliance was reasonable.
Affirmed.
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Apparent Agency requires actual acts to hold a hotel liable for the injuries allegedly caused by a tour company
Posted: June 8, 2015 | Author: Recreation Law | Filed under: Pennsylvania | Tags: agency, Apparent Authority, Dunns River Falls, Hotel, Jamaica, Montego Bay, Principal, Tour Company | Leave a commentApparent agency requires actual cloaking by the principal with the cloth of agency on the agent so that third parties believe what they are assuming. The third parties must then reply on the agency to their detriment.
Cash v. Six Continents Hotels, 2004 U.S. Dist. LEXIS 2901
State: Pennsylvania, United States District Court for the Eastern District of Pennsylvania
Plaintiff: Malleria Cash and Frederika Harrell
Defendant: SIX CONTINENTS HOTELS
Plaintiff Claims: Negligence
Defendant Defenses: No relationship with the true defendant
Holding: For the defendant
Year: 2004
The plaintiff’s in this case were in Montego Bay Jamaica. They were staying with the defendant, Holiday Inn Sunspree Hotel. Through the hotel, they arraigned a tour to Dunns River Falls in Ocho Rios, Jamaica with Harmony Tours, Ltd.
Harmony Tours Ltd maintained a desk in the hotel lobby. However, there was no other legal connection between Holiday Tours and the defendant hotel.
The plaintiffs were transported to the falls and dropped off “for a long period of time without any guidance or assistance.” While they were there, the plaintiff’s claimed they were trying to climb the waterfall without the assistance of a guide, slipped, fell and sustained injuries.
They filed this suit in Federal District Court for the Eastern District of Pennsylvania, which the parties agreed was the correct court and that Pennsylvania law, controlled the case.
Analysis: making sense of the law based on these facts.
The court started out going through the requirements as the court to grant a motion for summary judgment filed by the defendant. The issue that must be answered on whether to grant a motion for summary judgment is “whether reasonable minds may differ as to the verdict.” If there are no facts that are in dispute and no reasonable mind can find differently than the motion should be granted.
However, if the facts can be interpreted differently or a reasonable mind might find differently, then a motion for summary judgment should not be granted.
The basis for the argument of the plaintiff’s that the tour company was related was not legal but apparent. The plaintiff’s argued the tour company was an apparent agent of the tour company. An apparent agent is defined as:
…one who represents that another is his servant or other agent and thereby causes a third person justifiably to rely upon the care or skill of such an apparent agent is subject to liability to the third person for harm caused by the lack of care or skill of the one appearing to be a servant or other agent as if he were such.
If the principal “clothes his agent with apparent authority is estopped to deny such authority.” However, the court could find nothing that supported this argument.
In looking at the facts the court identified all the ways the plaintiff’s has been informed that the defendant hotel was not associated with the tour company.
No one every represented that the tour company was an agent or affiliated in any special way with the hotel. The ticket the plaintiffs were given after purchasing the tour state:
…take notice that Harmony Tours Ltd. which conducts tours and excursions sold at this desk is an independent contractor. Holiday Inn (Jamaica) Inc. is not responsible for any loss, damage or injury which anyone may suffer arising out of, or in the course of, or in connection with any such tour or excursion.
On top of that, there was no evidence offered by the plaintiff to support its theory.
Even if there was evidence to support facts showing apparent authority, the plaintiffs must then prove that they justifiably relied upon the representation. The plaintiff’s would have to argue that they relied upon representations that the tour was the principal of the hotel and that the hotel made a representation that leads to the injury.
In this case, that is a reach based on the facts and the court did not buy it.
The case was dismissed.
So Now What?
The critical part is whenever it may appear that you are in a relationship with another business, and you are not; you need to make all customers of both or yours aware of the facts.
Notices posted at the cash register of a retail store that the store is not related to any of the third parties soliciting business in the store.
If you are a hotel, then a sign in the lobby explaining the relationship or near any brochures as well as in this case, printing that notice on the receipt.
Always be up front with your relationship with your customers.
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Cash v. Six Continents Hotels, 2004 U.S. Dist. LEXIS 2901
Posted: June 7, 2015 | Author: Recreation Law | Filed under: Legal Case, Pennsylvania | Tags: agency, Apparent Authority, Dunns River Falls, Hotel, Jamaica, Montego Bay, Principal, Tour Company | Leave a commentCash v. Six Continents Hotels, 2004 U.S. Dist. LEXIS 2901
MALLERIA CASH and FREDERIKA HARRELL, Plaintiffs, v. SIX CONTINENTS HOTELS, Defendant.
CIVIL ACTION NO. 03-3611
UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA
2004 U.S. Dist. LEXIS 2901
February 19, 2004, Decided
February 19, 2004, Filed
DISPOSITION: Defendant’s motion for summary judgment granted.
COUNSEL: [*1] For MALLERIA CASH and FREDERIKA HARRELL, Plaintiffs: HOWARD M.
GIRSH, STEINBERG & GIRSH, P.C., PHILADELPHIA, PA.
For SIX CONTINENTS HOTELS, BY ITS AGENT OR SUBSIDIARY HOLIDAY INN, Defendant:
FRANCIS H. GREY, JR., JENNIFER M. BROOKS, LAVIN COLEMAN O’NEIL RICCI FINATELLI & GRAY, PHILADELPHIA, PA.
JUDGES: RONALD L. BUCKWALTER, S.J.
OPINION BY: RONALD L. BUCKWALTER
OPINION:
MEMORANDUM
BUCKWALTER, S.J.
February 19, 2004
Presently before the Court is Defendant Six Continents Hotels’ Motion for Summary Judgment, Plaintiffs Malleria Cash’s and Frederika Harrell’s (collectively “Plaintiffs”) Opposition thereto and Defendant’s Reply to Plaintiffs’ Opposition. For the reasons set forth below, Defendant’s motion is granted.
I. BACKGROUND
On or around April 30, 2001, Plaintiffs were staying at the Holiday Inn Sunspree Hotel (“Hotel”) while they vacationed in Montego Bay, Jamaica. The Hotel is owned by SC Hotels & Resorts (Jamaica) Ltd., which is an affiliate of Defendant. While staying at the Hotel, Plaintiffs arranged to take a tour of the Dunns River Falls in Ocho Rios, Jamaica. Plaintiffs booked the tour with a local tour company, Harmony Tours Ltd. For the convenience of its guests, the Hotel [*2] permitted Harmony Tours to maintain a desk in the Hotel lobby where guests could purchase tours. It is undisputed that the Hotel and Harmony Tours have no legal affiliation.
On or around April 30, 2001, Harmony Tours transported Plaintiffs to Dunns Rivers Falls. Plaintiffs allege that they were dropped off at the Falls “for a long period of time without any guidance or assistance.” (Compl. at P 3.) Plaintiffs claim that while they were trying to climb the waterfall – without the assistance of a guide – they slipped, fell and sustained injuries.
On May 13, 2003, Plaintiffs filed a one count complaint in state court alleging that Defendant was negligent for failing to provide a guide as they toured the Falls. On June 12, 2003, Defendant removed the case to this Court.
The parties do not dispute that Pennsylvania law controls this case.
II. STANDARD OF REVIEW
A motion for summary judgment will be granted where all of the evidence demonstrates “that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(c). A dispute about a material fact is genuine [*3] “if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 91 L. Ed. 2d 202, 106 S. Ct. 2505 (1986). Since a grant of summary judgment will deny a party its chance in court, all inferences must be drawn in the light most favorable to the party opposing the motion. United States v. Diebold, Inc., 369 U.S. 654, 655, 8 L. Ed. 2d 176, 82 S. Ct. 993 (1962).
The ultimate question in determining whether a motion for summary judgment should be granted is “whether reasonable minds may differ as to the verdict.” Schoonejongen v. Curtiss-Wright Corp., 143 F.3d 120, 129 (3d Cir. 1998). “Only disputes over facts that might affect the outcome of the suit under the governing law will properly preclude the entry of summary judgment.” Anderson, 477 U.S. at 248.
III. DISCUSSION
The parties do not dispute that Defendant and Harmony Tours are not legally affiliated in any way. Additionally, there is no dispute that Harmony Tours was not a servant or actual agent of Defendant. Rather, Plaintiffs’ sole contention is that Harmony Tours was an apparent agent of Defendant; therefore, [*4] Defendant should be held liable for Harmony Tours’ alleged negligence. (Pls.’ Mot. P 5.)
The Restatement (Second) of Agency § 267 outlines the rule for apparent agency and states, “one who represents that another is his servant or other agent and thereby causes a third person justifiably to rely upon the care or skill of such apparent agent is subject to liability to the third person for harm caused by the lack of care or skill of the one appearing to be a servant or other agent as if he were such.” Drexel v. Union Prescription Centers, Inc., 582 F.2d 781, 790-91 (3d Cir. 1978)(citing Restatement (Second) of Agency).
While Pennsylvania has not formally adopted § 267, it has adopted the theories of apparent authority and agency by estoppel, which state that “a principal who clothes his agent with apparent authority is estopped to deny such authority.” Myszkowski v. Penn Stroud Hotel, Inc., 430 Pa. Super. 315, 634 A.2d 622, 629 (Pa. Super. Ct. 1993). As the Myszkowski Court noted, apparent agency, “as embodied in § 267, is substantially similar to the doctrines of apparent authority and agency by estoppel. [*5] “ n1 Id.
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n1 The Court also noted that “both apparent authority and agency by estoppel are customarily only relevant in the context of business transactions.” Id.
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Plaintiff has not offered any evidence whatsoever to show that Harmony Tours had apparent authority or that Harmony Tours was Defendant’s apparent agent.
Plaintiffs have not even alleged, let alone offered evidence to show, that Defendant made any representation to Plaintiffs that Harmony Tours was its agent. Rather, Plaintiffs stated in their depositions that they just assumed that Harmony Tours was affiliated with Defendant because Harmony Tours had a desk in the Hotel’s lobby. (Pls.’ Br. P 5.) In fact, Plaintiff Harrell testified that nobody at Harmony Tours or the Hotel ever represented that the two entities were affiliated. (Harrell Dep. Tr. at 34-35.) Plaintiffs have simply not offered any evidence that shows Defendant held out Harmony Tours as its agent.
Additionally, the undisputed evidence shows that Harmony Tours actually supplied [*6] Plaintiffs with direct information that Harmony Tours was not an agent of Defendant. Both parties submitted photographs of Harmony Tours’ display desk in the Hotel. (Pls.’ Br. Ex. 4; Def.’s Br. Ex. D.) Behind the desk was a large sign that listed each of the tours that were available. In large capital bold letters, the top of the sign stated “HARMONY TOURS.” Furthermore, the following language was printed on the tour tickets that Plaintiffs purchased:
take notice that Harmony Tours Ltd. which conducts tours and excursions sold at this desk is an independent contractor. Holiday Inn (Jamaica) Inc. is not responsible for any loss, damage or injury which anyone may suffer arising out of, or in the course of, or in connection with any such tour or excursion. n2 (Def.’s Br. Ex. C.)
Not only is there no evidence that Defendant made representations that it was Harmony Tours’ principal, but Harmony Tours directly represented to Plaintiffs that it was an independent contractor that was not affiliated with Defendant.
Accordingly, Plaintiffs cannot meets its burden of proving apparent authority or agency by estoppel.
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n2 Plaintiffs argue that this language is an exculpatory clause, and that the validity of such clauses should be determined by a jury. Plaintiffs argument, however, misses the point. Defendant does not offer this language to show that it cannot be held liable for negligence. Rather, Defendant offers this language to show that Harmony Tours informed its customers that it was an independent contractor and not an agent of Defendant; therefore, Plaintiffs cannot succeed on a theory of apparent authority.
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Lastly, even if Plaintiffs could show that Defendant made a representation that it was affiliated with Harmony Tours, Plaintiffs must then show that they justifiably relied on the representation. Myszkowski, 634 A.2d at 629.
Plaintiffs have not supplied any evidence that they relied on any representation made by Defendant. In fact, during her deposition, with regard to purchasing a ticket for the tour, Plaintiff Frederika Harrell testified as follows:
Q. Would you have not bought that ticket if you found out Harmony Tours was not affiliated with Holiday Inn?
A. I don’t know. I mean, I probably would have, because I wanted to take the tour. (Pls.’ Mot. P 5.)
Plaintiff Harrell’s own testimony shows that even if Defendant had made a representation that it was affiliated with Harmony Tours, she did not rely on that representation in any way. She would have taken the tour regardless of who was offering it.
IV. CONCLUSION
For the foregoing reasons, Defendant’s Motion for Summary Judgment is granted and judgment is entered against Plaintiffs and on behalf of Defendant. An appropriate Order follows.
ORDER
CIVIL ACTION NO. 03-3611 [*8]
AND NOW, this 19th day of February, 2004, upon consideration of Defendant Six Continents Hotels’ Motion for Summary Judgment (Docket No. 7), Plaintiffs Malleria Cash’s and Frederika Harrell’s Opposition thereto (Docket No. 10) and Defendant’s Reply to Plaintiffs’ Opposition (Docket No. 11), it is hereby ORDERED that Defendant’s Motion for Summary Judgment is GRANTED and judgment is entered on behalf of Defendant and against Plaintiffs. This case is now CLOSED.
BY THE COURT:
RONALD L. BUCKWALTER, S.J.