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O'BANNER v. McDonald's Corp.
653 N.E.2d 1267
Ill. App. Ct.
1995
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*1 factor, expert’s consideration an essential opinion weight is of no disregarded. Wilhoite, must be (People v. 3d at We concluded marijuana the amount ingested prior to the crime in that case constituted essential factor the formation of opinion regarding cannabis intoxication. Without such knowl edge, diagnosis no such plausibly can be made.

We fail to see similar lack of foundation in present case. The expert, State’s Cavenaugh, Dr. utilized the same factors in evaluating sanity defendant’s as did the defense witnesses. All interviewed defendant. All reviewed the two notes written after the killings. All referred to hospitalization defendant’s psy records and chiatric examinations. All prior knew of defendant’s involvement family with counseling. That the witnesses reached different medical upon conclusions based the same foundational evidence does not mean defendant sustained his proof burden of or that the State failed carry way, burden. Put another say we cannot that Dr. Cave naugh’s opinion regarding sanity defendant’s raised serious doubts as validity to the little, his conclusion and was entitled to any, if weight. contradictory expert opinion presented judge the trial with a classic of fact. No basis exists in the record to disturb judge’s the trial determination.

Defendant’s convictions are affirmed.

Affirmed. COUSINS, P.J.,

. McNULTY, J., concur. O’BANNER, Plaintiff-Appellant, REGINALD v. McDONALD’S CORPORA- (Unknown TION, Defendants). Defendant-Appellee Owners, (6th Division) First District No. 1 — 93—1758 Opinion May Rehearing July filed denied 1995.— *2 RAKOWSKI,J., dissenting. (Donald Kurasch, Ltd., Chicago Donald A. A. Kurasch and Jessica B.

Tucker, counsel), appellant. *3 (John Kiely, Law Office Chicago Kiely of John C. of C. and Dennis M. Glynn, counsel), appellee. of JUSTICE ZWICK delivered the opinion of the court: This is an appeal from the trial grant summary court’s judg- (hereinafter defendant, ment in favor of Corporation McDonald’s Mc- franchisor). Corporation Plaintiff, O’Banner, or the Reginald single-count in a complaint that slipped he and fell in a Mc- Donald’s restaurant at Chicago located 29 East 87th in Street and that vicariously negligence liable for the operated through restaurant’s owners who the restaurant (the franchisees) agreement. franchise The owners of the restaurant have never been served and parties appeal. are not to this We are asked to determine whether franchisor can be liable for the negligence of its agency franchisees under either an agency theory liability notwithstanding agree- the existence of ments between the franchisor and expressly franchisee which disavows an relationship. franchi- injured in the alleged that he was complaint

Plaintiffs he 1, 1990, slipped he on what February after on see’s bathroom negligence complaint alleging filed his or water. He believed to be ice Corporation owned 9, that McDonald’s January He claimed on 1992. the franchisee’s leased, maintained, operated and controlled caused negligence, and, of the franchisee’s as a result premises granted McDonald’s judge The trial plaintiffs injuries. 18, 1993, previous judge after a

summary judgment motion on March again on summary judgment August on denied 16, 1992. November authority upon as to the

Initially, there is some confusion 1993, 18, trial court brings appeal. On March plaintiff this judgment of McDonald’s granting summary favor entered an order subsequent motion to reconsider plaintiffs and denied final litigation and were 1993. These motions ended April Supreme Court Rules 301 appealable pursuant orders (134 orders, however, trial In Ill. 2d Rules both record, court, Supreme in the made Court explained for reasons not 304(a) (134 304(a)). has findings While the Rule 2d R. appeal brought pursuant Supreme stated in his brief that this is 304(a), only appeal proper conclude that is under Court Rule we (134 303). Supreme Court Rules 301 and 303 Ill. 2d Rules appeal. proceed Plaintiff referenced these rules his notice We accordingly. granted summary improperly

Plaintiff claims that the trial court indicate judgment because there is sufficient evidence the record to relationship and its between McDonald’s Corpora- franchisees were McDonald’s franchisees was such least, claims, gen- very there is a agents. tion’s actual At the uine issue of fact as to whether the franchisees were agents. Corporation’s apparent Illinois, provisions of governed is (735 Procedure. ILCS

section 2—1005 of the Code of Civil 5/2 —1005 (West 1992).) remedy Summary judgment recognized to be drastic granted right to it is clear properly which is where the movant’s Insulating Co. v. Corinco (Vicorp and free from doubt. Restaurants the sum purpose any gen there are mary judgment procedure is to determine whether Mercado parties. (Vallejo uine issues of material facts between Summary judgment should App. *4 affidavits, granted only and pleading, depositions, be if the admissions any material fact any, genuine issue as to if show that there is no a matter of law. moving judgment as party and that the is entitled 592

(Dash Service, (1991), Messenger Inc. v. Insurance Co. 221 Hartford 1257.) 1007, App. appellate Ill. 3d 582 N.E. 2d in the court of Review grant of is de novo. Outboard Marine v. (1992), Liberty 90, 102, Mutual Insurance Co. 154 Ill. 2d 607 N.E.2d The doctrine of respondeat superior injured an allows principal vicariously hold a agent. liable for the conduct his her 926.) (Moy (1994), 519, County 523, v. Cook agent The issue whether independent one is an or an contractor generally fact, relationship unless the is so clear as to (Gasbarra undisputed. (1979), be v. St. James Hospital App. 85 Ill. 3d 32, 43, agency an Whether actual fact been has in created is they determined the relations of the parties as exist agreements acts, under their question being with the ultimately (1986).1 one of intention. 3 Am. Agency Jur. 2d §21 The record in this case establishes that the franchisees who operated owned and the restaurant located at 29 East 87th Street in Chicago were not agents. agency actual An relationship is a consensual legal whereby: one between two entities (1) principal right has the to control agent, the conduct of the (2) agent and power has the legal to affect the relations (State principal. Security Insurance Co. v. Frank B. Hall & Co. App. 258 legal 3d relationships N.E.2d The be agree tween defendants in this case are delineated the written ments relationship which exist between Their them. is that of lessor/ lessee, /franchisee, principal/ franchisor but not licensor/licensee While otherwise, has affidavits supporting documents contained in the establish that Mc record not operator subject the owner or operator’s lease, restaurant. agreement the license and the agreement franchise place for the restaurant which were at the plaintiff’s time of clearly undisputedly accident establish the Salisbury Chapman Realty 1In both App. 124 Ill. Pancakes, and Slates v. International House App. may the court stated franchisor exercise degree such a agency of control over a franchisee so as to create an relation ship, relationship stranger "at least insofar as this affects to the franchise agreement.” (Salisbury, 1061; Slates, 3d at 3d at confusion, however, In order to avoid semantical we believe a franchise agreement’s parties effect on third is best considered under agency theory, opposed agency analysis. to an actual See Greil v. also International, Travelodge 541 N.E.2d 1288 law). (applying California and its relationship between an actual lack of *5 specifi- operator’s lease agreement and the license franchisees. Both are owners of the restaurant state that the cally unequivocally agent an for McDonald’s authority to act as given not would be liable restaurant alone of the and that the owners in the record There are no facts occurring premises. the injuries followed, despite agreement was not that would indicate which by operations upon the restaurant’s obligations placed the extensive agree- through its various and in favor of the franchisees. ments with were Mc contrast, the franchisees question of whether

In the apparent agent is nearly so clear. An agents is not apparent not, reasonably appears to third who, or whether authorized person (Mitchell Buick & Old to act as an persons to be authorized (1985), Services, Sales, Dealer Inc. v. National smobile 1281.) apparent agency is The doctrine of App. (Northern St. estoppel. Trust Co. v. equitable based on the doctrine ap An App. 3d Hospital Francis agent in a situation where places apparent that an parent principal as estopped to act is "agent” may presumed be to have authority. (Crawford Savings against denying third from the 288, 292-93, & Loan Association v. Dvorak set out agency are most often apparent The elements of (1) knowing acquies being: principal’s the consent to Illinois (2) authority, party’s the third knowl agent’s cence in the exercise of author good-faith agent possessed that the edge of the facts and belief (3) agent’s reliance on the ity, party’s the third detrimental Thomas, Weil, authority. & P.C. v. Sara Lee Freiburg Co., 383, 390, 1344; Northern Trust 3d at 278. easily the applied above are not to The three elements listed They appear to presented as the one this case. tort situation such (See Sycamore Municipal evolved from contract cases. Gilbert have ("It true that 622 N.E.2d 788 is Hospital commonly applied authority is more apparent the doctrine of cases”).) however, supreme court set out the Recently, contract situation which govern the tort elements of conduct of hospital patient is harmed the tortious arises when a (Gilbert, 156 Ill. 2d at independent contractor. hospital’s ac vicariously liable for the contractor’s hospital order to hold (1) hospital, tions, must show: determined the the court person would lead reasonable agent, or its acted in a manner that negligent be was to conclude that the individual who (2) employee agent hospital; where it al is acts of the leged apparent agent appearance that create the authority, hospital knowledge had acquiesced actions; of and in those (3) that the upon acted reliance hospital conduct of the alleged agent, or its ordinary consistent with prudence. care and Gil bert, 156 Ill. 2d at 525.

We see no reason apparent agency theory to limit the of vicari liability ous hospital setting. as set out in patients Gilbert to Just as naturally depend upon hospital their supervise chosen and take responsibility facility, for the conduct of those who work within the it logical many public conclude that members of the have come to believe that franchisors such as are ultimately responsible food, quality not for the but also for the premises condition of the in which it is served. McDonald’s every extensive and visible reach into aspect of its franchisees’ businesses makes such a belief natural. The license agreement included in the record illustrates this fact. Under *6 terms, Corporation McDonald’s has a undertaken substantial effort to assure that it public alone controls how the perceives its franchised restaurants. "system”

McDonald’s in described its license agreements being "comprehensive” scope as in offering pub- and the lic a atmosphere. Only designated beverages "uniform” may food and be served at franchised required restaurants. Franchisees are to use prescribed equipment, building layouts designs. and McDonald’s Corporation quality, dictates the level of service and cleanliness throughout system. employees the All restaurant required are designated by wear uniforms Corporation. McDonald’s McDonald’s Corporation management, also dictates advertising personnel and policies additionally "Hamburger and runs University,” training a facility required where its franchisees are managers. to train their Presumably employees responsible maintaining the for the bathroom plaintiff injured facilities where was wore "McDonald’s uniforms” required and were prescribed follow McDonald’s standards of "quality, and service cleanliness.” degree

We find the by control exercised the McDonald’s franchisees, including over its the control exercised over way the in which the promoted franchisees’ business is and adver- tised, potential creates the public for members of to be misled as entity to the responsible maintaining the restaurant facilities. The record indicates entity McDonald’s is the responsible permeate for the relentless stream of commercials which media, promoting safe, providing McDonald’s restaurants óf fact as to atmosphere. It is clean and wholesome person such as could lead a type of conduct this whether reputation for upon in reliance premises to enter the fact, agent was, dealing in with he a belief that quality upon and Corporation. raised as genuine question of fact to be a Because we find there slipped he the restaurant plaintiff perceived to whether being operated McDonald’s injured and himself as summary judg- granting of agents, the circuit court’s we reverse with proceedings consistent ment remand the case for further and opinion. Reversed and remanded.

McNAMARA, P.J., concurs. RAKOWSKI, dissenting:

JUSTICE judgment, majority reversing grant summary proper In sup nor pleaded that was never has manufactured a cause of action so, ignores controlling doing majority ported the record. case, Sycamore upon single Gilbert case law and instead relies which is Municipal Hospital legally factually inapposite. single alleging pertinent complaint

Plaintiff’s contains a count along other unknown own- part Corporation, that McDonald’s with ers, owned, maintained, leased, premises and controlled the operated, duty of the injured, and that it "was the where diligence keep defendants to exercise reasonable care premises reasonably maintain in a safe condition.” Nowhere said agency, apparent. complaint any allegation is there actual complaint Plaintiff neither amended the nor added the "unknown parties” to the action. *7 judgment and in Corporation summary

McDonald’s moved support an affidavit stated: filed which

"3) specified Corporation not own the business McDonald’s does above.

4) speci- operate the Corporation McDonald’s does not business fied above.

5) manage- participate in the Corporation McDonald’s does not specified ment of the business above.

6) or on Corporation not file a tax return for McDonald’s does specified behalf of the business above.

7) not, right it have the Corporation McDonald’s does nor does to, hire, discharge discipline employees specified of the business above.

to, [***] 10) control the day-by-day Corporation activities does not, necessary nor did it to the business have the right operations specified of the restaurant above. 11) alleged incident, At the time of the the restaurant business specified operated by above was owned and Enter- John/Sheri prises, pursuant agreement to the terms of a franchise dated August 1982.” copies lease, operator’s also filed the agreement, license agreement. and the franchise response summary Plaintiff’s to the judgment motion does not deny any of these facts. Plaintiff’s simply affidavit contains the fol- lowing conclusionary language: Upon belief,

"5. agree- information and the executed license ment referred to in language Defendant’s Motion contains Defendant, CORPORATION, establishes MCDONALD operation maintained control the of the franchise and the over daily procedures and business at 29 Chicago.” East 87th Street in This was the state of judge the record when the trial entered summary judgment. I repeat, complaint the any did not contain al- legations agency, any nor was evidence proffered by the plaintiff. parties whether, sole issue framed after documents, reviewing the a question of fact existed as to whether Mc- operated, managed, or subject controlled the premises. portion

A opinion, agree, with which I states McDonald’s "was not the owner or operator subject (273 restaurant.” Usually, 3d at this determination However, would end the case. majority goes here the on to discuss and, apparent agency relying Gilbert, doctrine of on concludes that a of fact existed and I was error. respectfully majority submit should never have addressed (1) (2) apparent agency pleaded; issue of because it was not any record is support apparent agency devoid evidence to the (3) (4) ory; factually legally Gilbert is both inapposite; ample contrary majority holding. exists which is to the theory

When fails to raise form in the trial (Miscevich court, appeal. he cannot raise it for the first v. time 400, 404-05, Commonwealth Edison Co. Chevrolet, Saladino Team the court held: "[Pjlaintiffs allege apparent authority pleadings, did not their *8 theory upon theory trial level. The they this at the nor did raise changed on cannot be in the lower court a case is tried Accordingly, issue is waived for this [Citations.] review. appeal.” purposes of Hilton judice is Johnson v. to the case sub

Strikingly similar 546 N.E.2d where 190 Ill. Hotel Hilton injured patron a in the Biloxi plaintiff alleged he was while subject owned, operated, and controlled Hotel and that Hilton in of favor premises. The trial court entered Hilton, ownership inter finding that Hilton had no direct or indirect control, supervise, any right police, inspect, premises, est in the to argument of appeal, response plaintiff’s On in to or maintain them. agency, the court held: apparent agency in his com point plead apparent that he failed to

"We out theory, neglected plaint, to seek leave to amend to add this any consequence, a Johnson has did not raise it below form. As liability may be waived claim that Hilton Hotel’s Johnson, predicated upon theory apparent agency.” of App. 3d at 201. purpose pleading

It is axiomatic that the is to frame the issues. (see Gilbert, Although may at the standard be relaxed (plaintiff allege apparent agency, allege agency, did not but did theory a ample support the record contained evidence to identify agency)), counterproductive it to allow a (i.e., owned, specific theory managed, that McDonald’s restaurant), sup operated, and controlled the marshall evidence thereof, port proceed summary judgment, appeal, and then on amend, distinct, seeking argue separate the without ever leave to (i.e., ory apparent agency).

Assuming properly plead apparent did arguendo theory support such a on the record agency, there is no Gilbert, majority solely argued of this case. The relies case never reason, argument. The appellate either its brief or at oral submit, apply I to the facts in this case. is that Gilbert does not Gilbert, judice, ample the case the record contained evi- unlike sub be hospital emergency physician dence that the held the room out to patient that emer- hospital never advised the decedent rather than gency physicians independent room were contractors Moreover, by the prepared form hospital employees. consent part: signed by pertinent stated in hospital and the decedent emergency undersigned treatment has been informed of the "The appears necessary patient whose name above considered for the performed physi- procedures will be and that the treatment added.) employees hospital.” (Emphasis (Gilbert, dans and 156 Ill. 2d at evidence, ques- Based on this the Gilbert concluded that a fact court preclude summary judgment. tion existed to inapposite, ample Not is Gilbert but there is Illinois author ity precise liability on the issue of a franchisor’s tort for the actions (See Coty of its franchisee. Slicing U.S. Machine Co. 1371; App. 3d Slates v. House International

Pancakes, 457; Thomson v. McDonald’s, 760; Salis *9 (1984), 1057, bury Realty 127; v. 124 Chapman App. 3d Illinois, (1986), App. Yassin v. Grocers Inc. 3d Certified 1052, 315; International, (1989), v. Travelodge Greil Inc. 1061, 1288; Illinois, App. 541 Raglin N.E.2d v. HMO Inc. (1992), 642, App. cases, Of these agency Greil relationship found existed between a franchisor and However, so, doing its franchisee. applied Greil court Califor law, required by agreement, nia the franchise rather than Illinois types law. "California courts found have both [ostensible (Greil, to exist in App. actual] the franchise context.” cite, find, at Plaintiff I any authority does not nor can Illinois support position. his jurisdictions

Other application have also addressed the apparent authority doctrine of in a context. franchisee/franchisor (Fla. 1995), 119; See Mobil Oil v. Mysz- 648 So. 2d Bransford Hotel, (1993), 315, kowski v. Super. Penn Stroud Inc. 430 Pa. 634 A.2d 622; U.S.A., (1990), 25, 840; Chevron Inc. v. Lesch 319 Md. 570 A.2d (Ala. 1986), 1034; v.Wood Shell Oil Co. 495 So. 2d Watkins v. Mobil (1986), 62, 284; Oil Corp. 291 S.C. 352 S.E.2d Smith v. Maytag Corp. (Ga. 1995), A94A1979, App. 111397; No. 1995 WL McGuire v. Radis- International, 740, 51; App. son Hotels Inc. 209 Ga. 435 S.E.2d (Ohio Restaurants, 1986), App. Puente v. Frisch’s Inc. No. L—86— (Fla. 14372; Associates, 1986 Realty WL Dalia v. Electronic Inc. 1994), Inn, App. 1075; Dist. Hayman Ct. 629 So. 2d v. Ramada Inc. (all against N.C. applica- 86 357 S.E.2d 394 held context). apparent authority tion of in franchisee /franchisor sure, contrary authority following beTo does exist and the cases applied have doctrine of franchisee/ (See relationship. franchisor v. Maier 68 Ohio Shaffer 986; Systems, Watson v. Howard Johnson Inc. Franchise 758; Pizza, Ga. 453 S.E.2d Parker v. Domino’s (Fla. (3d 1993), 1026; Dist. Ct. 629 So. 2d Gizzi v. Texaco Cir. (4th 1971), 308; Inns, 1988), Crinckley Holiday 437 F.2d Cir. cases, however, contain the records In all of these 844 F.2d holding justifiable reliance. out and ample evidence allegations, nor complaint contains no judice, sub In the case evidence, Corpora- as to how McDonald’s does the record contain there importantly, More its franchisees to be its tion held out how, if, why relied as to is no whatsoever evidence its detriment. reasons, I affirm the decision foregoing would

For court. circuit (Donato CROCE, Croce, Deceased

In re ESTATE OF LEANORE TAUB Davis, Petitioner-Appellant, v. Merle as Ex’r and Trustee Under the Last Croce, Deceased, Respondents- al., Will and Testament of Leanore Taub et Appellees). (6th Division)

First District No. 1 — 94—2425 Opinion filed June

Case Details

Case Name: O'BANNER v. McDonald's Corp.
Court Name: Appellate Court of Illinois
Date Published: May 12, 1995
Citation: 653 N.E.2d 1267
Docket Number: 1-93-1758
Court Abbreviation: Ill. App. Ct.
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