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.
