Delivery of food, goods or services to customer locations is an integral part of the service concept underpinning many hospitality and franchised businesses. Some purveyors have abandoned on-premise service formats in favor of carry-out and delivery-base store fronts. But how far should the system owner go to set standards for delivery operations?
An Oregon appeals court recently considered the personal injury claims of a person struck by a Domino’s® pizza delivery driver in Viado v. Domino’s Pizza, LLC. While such accidents are not unusual, the injured party’s appeal of the lower court’s ruling that Domino’s was not liable and the comprehensive analysis of the law by the Oregon appellate court merit some attention. Contrary to recent rulings by state appellate courts in South Carolina and Florida, this Oregon appellate court held that the franchisee was indeed the agent of Domino’s (the franchisor). The ruling exposed Domino’s to further analysis of potential vicarious liability for the negligence of the franchisee’s driver. Ultimately, the court held that because Domino’s did not direct the actual, physical driving details of the delivery driver, Domino’s was not liable to the injured party for the damages suffered in the accident with the franchisee’s delivery driver. Continue reading this article.