Vicarious Liability/Risk Management

Vicarious Liability/Insurance Defense Program

GPM has developed a unique and proprietary Vicarious Liability/Insurance Defense Program that, in essence, allows franchisors to “outsource” the administration of all vicarious liability litigation involving their franchisees—this program requires that the franchisor successfully police its franchisees to ensure that they have, in fact, properly named the franchisor as an additional insured under their CGL insurance policies.

Under this program, GPM has successfully handled hundreds of vicarious liability cases for several franchisors at a flat fee cost that is both reasonable and totally predictable for our clients.

GPM works closely with the franchisor and its insurance carrier/third-party administrator to ensure that all vicarious litigation is tendered to the appropriate insurance carrier; that insurance defense counsel are properly appointed and subsequently monitored and advised on applicable franchise-related issues; and that every effort is made to persuade the plaintiff to dismiss its claims against the franchisor right at the beginning of the process—which happens in a significant percentage of cases.

This program frees franchisor personnel from the time-consuming tasks of administering, monitoring, and remaining responsible for significant volumes of vicarious liability lawsuits.

Risk Management Program

GPM also provides franchisors with prospective counseling on methods to better manage risk in their systems, particularly when company-owned or managed units are involved. GPM’s attorneys have successfully defended franchisors in serious liability cases involving owned or managed units, and bring unsurpassed expertise in defending franchisors in both franchise and tort-related claims.

Representative Matters

• Eileen Briggs et al. v. Carlson Hotels Management Corporation, et al., 07-CV-0653 (LaCrosse County Circuit Court, WI December 8, 2010) (court grants motion for sanctions dismissing plaintiffs’ personal injury claims against the Radisson Hotel LaCrosse due to discovery violations)
• Lisa Reider v. Radisson Hotels International, Inc. and Carlson Hotels Worldwide, Inc., 08-CV-2328-H (WMC) (S.D.Cal. March 8, 2010) (court awards summary judgment dismissing plaintiffs’ claims for injuries allegedly suffered at the Radisson Hotel Narita, Japan—holding that Carlson’s Asian subsidiary is not an agent of the defendant parent corporations)