California's Highest Court Finds Domino's Not Vicariously Liable

In August 2014, The California Supreme Court ruled that Domino's Pizza was not liable for employment-related actions of their franchisees. In Patterson v. Domino's Pizza, LLC the Court held that since Domino's Pizza does not control day-to-day operations or logistics of its franchises, the company should not be held responsible for the behavior of the franchisee's employees.

Faegre Baker Daniels partner Kerry Bundy and associates Justin Krypel and Nick Rotchadl, authored an article on the groundbreaking ruling for About.com. The trio stressed that although the ruling is a victory for franchisors, franchisors would be wise to ensure that policies are in place to protect their brand and avoid involvement in the franchisee's employment decisions.