Hoffnagle v. McDonald's Corp.
| Decision Date | 19 October 1994 |
| Docket Number | No. 93-1009,93-1009 |
| Citation | 522 N.W.2d 808 |
| Parties | Dana Annette HOFFNAGLE, Appellant, v. McDONALD'S CORPORATION, Appellee. |
| Court | Iowa Supreme Court |
Mark J. Seidl and Mark E. Liabo, Tom Riley Law Firm, P.C., Cedar Rapids, for appellant.
James M. Powers and Mark H. Rettig, Hines, Pence, Day & Powers, P.C., Cedar Rapids, for appellee.
Considered by McGIVERIN, C.J., and LAVORATO, NEUMAN, ANDREASEN, and TERNUS, JJ.
The question here is whether a franchisor may be held liable for injuries suffered by its franchisee's employee as a result of an assault by third parties. The district court granted summary judgment for the defendant franchisor, McDonald's Corporation, concluding as a matter of law that defendant owed no duty of security to the franchisee's employee, plaintiff Dana Annette Hoffnagle. We agree with the district court that the defendant franchisor did not retain sufficient control of the business operation so as to give rise to a duty in this case. Accordingly, we affirm the district court's grant of summary judgment in favor of defendant.
I. Background facts and proceedings. On January 21, 1990, plaintiff Dana Annette Hoffnagle was working at a McDonald's restaurant located at 1530 First Avenue N.E. in Cedar Rapids. Hoffnagle was employed by Rapid-Mac, Inc., a corporation owned by Gerald L. Mrozinski and Judith C. Mrozinski, who are the franchisees, licensees, and lessees of the restaurant by virtue of several agreements with defendant McDonald's Corporation (McDonald's), the franchisor, licensor, and lessor.
At approximately 10:00 p.m., two men entered the restaurant, were served, and sat down in the dining area to eat their food. Since these two men were the only customers in the restaurant at that time, Hoffnagle was performing clean-up duties and went to the entryway of the restaurant to sweep the floor. After the two men placed another order at the counter, they went to the entryway, grabbed Hoffnagle, and took her outside the restaurant to the parking lot where they attempted to force Hoffnagle inside their car. No security guards were on duty at the restaurant that evening.
As Hoffnagle was resisting the two men's attempted abduction, Tammy Geiger, a managerial employee of the restaurant, came to her assistance. With Geiger's help, Hoffnagle escaped from the assailants and returned to the restaurant. Once inside, Hoffnagle sat down to compose herself, and Geiger went to take the order of a drive-thru customer. Geiger noticed that the assailants remained outside driving their car from one side of the parking lot to the other, but she did not lock the doors or telephone the police at that time.
Some time later, at least one of the men went back inside the restaurant and again attempted to take Hoffnagle outside. Geiger intervened again, causing the assailants to leave the restaurant's premises. Geiger then telephoned the police department, and Hoffnagle later made an official complaint against the assailants. The police department investigation and report that followed revealed the identity of the two men who were responsible for the attacks on Hoffnagle.
Hoffnagle filed a claim for workers' compensation benefits with her employer, Rapid-Mac, Inc., and was compensated under the workers' compensation statutes. See Iowa Code ch. 85 (1989).
Subsequently, Hoffnagle filed a suit against McDonald's, the owner of the real property where the restaurant is located. As previously mentioned, McDonald's is a party to a franchise agreement, license agreement, and operator's lease with the Mrozinskis, all dated May 20, 1987. McDonald's was not Hoffnagle's employer on the date the two men attacked her.
The essence of the license agreement between McDonald's and the Mrozinskis "is the adherence by licensee to standards and policies of license policies of McDonald's for providing for the uniform operation of all McDonald's restaurants within the McDonald's system including, but not limited to, serving only designated food and beverage products, the use of only prescribed equipment and building layout and designs, strict adherence to designated food and beverage specifications and to licensor's prescribed standards of quality, service and cleanliness in licensee's restaurant operation."
Among other provisions, the licensing agreement provides that the licensee will adopt and use business manuals prepared by McDonald's, and that McDonald's will make training available at a training center, currently Hamburger University, which the licensee and the licensee's managerial employees are to attend. The agreement also gives McDonald's the right to inspect the restaurant at all reasonable times to ensure that the licensee is operating the restaurant in compliance with the standards and policies of the McDonald's system. When the licensee fails to comply with the standards and policies of the McDonald's system or when other specified events occur, the licensing agreement gives McDonald's the right to terminate the agreement.
On the basis of these agreements, plaintiff claims that McDonald's owned and controlled, or had the right to control, the restaurant and property where plaintiff was assaulted, and that McDonald's is liable for plaintiff's damages proximately caused by McDonald's alleged negligence in the exercise of such control, including failing to provide adequate security or to direct the providing of adequate security at the restaurant.
Following discovery, McDonald's filed a motion for summary judgment, see Iowa R.Civ.P. 237(b), asserting that no genuine issue of material fact exists and that as a matter of law McDonald's has no duty to provide Hoffnagle a safe place to work or to provide security for her, as those duties are the responsibility of Hoffnagle's employer.
Plaintiff resisted, contending that the issue of defendant's control of the restaurant's operation and leased property is a material, factual issue within the province of the jury.
The district court sustained defendant's motion for summary judgment, concluding as a matter of law that defendant has no duty which could render it liable to the plaintiff for her injuries caused by third persons.
Plaintiff appealed.
The record consists of the pleadings, motion for summary judgment and resistance, depositions, affidavits, exhibits, and answers to written interrogatories. See Iowa R.Civ.P. 237(c).
II. Scope of review. We will uphold a grant of summary judgment when no material fact is at issue and the moving party is entitled to judgment as a matter of law. Iowa R.Civ.P. 237(c). When we review the propriety of a grant of summary judgment, the moving party is required to show that no genuine issue of material fact exists and that it is entitled to judgment as a matter of law. Shawv.SooLineR.R.Co.,463N.W.2d51,53 (Iowa 1990). In determining whether the movant has met this burden, we review the record in the light most favorable to the party opposing summary judgment. Downs v. A & H Constr., Ltd., 481 N.W.2d 520, 522 (Iowa 1992).
"While we agree that negligence actions are seldom capable of summary adjudication, see Iowa R.App.P. 14(f)(10), the threshold question in any tort case is whether the defendant owed the plaintiff a duty of care." Sankey v. Richenberger, 456 N.W.2d 206, 207 (Iowa 1990). Whether such a duty arises out of the parties' relationship is always a matter of law for the court. Downs, 481 N.W.2d at 522; Shaw, 463 N.W.2d at 53.
III. Restatement (Second) of Torts Sections 344 and 414 as sources of a duty of security. Plaintiff and the district court both focus on the Restatement (Second) of Torts (1965) as the point of analysis for the determination of whether defendant franchisor owes a duty of security towards the injured franchisee's employee. However, plaintiff bases her arguments on Restatement section 344 while the district court grounded its decision on Restatement section 414.
A. Plaintiff asserts that the source of defendant's duty of security is Restatement (Second) of Torts Section 344:
A possessor of land who holds it open to the public for entry for his business purposes is subject to liability to members of the public while they are upon the land for such a purpose, for physical harm caused by the accidental, negligent, or intentionally harmful acts of third persons or animals, and by the failure of the possessor to exercise reasonable care to
(a) discover that such acts are being done or are likely to be done, or
(b) give a warning adequate to enable the visitors to avoid the harm, or otherwise to protect them against it.
Based on this section of the Restatement, plaintiff derives two theories of the duty of security McDonald's allegedly owes her. 1 First, Hoffnagle argues that McDonald's is a possessor of land and as such owes her a duty to discover and protect against harm from criminal acts occurring at the restaurant. Hoffnagle contends that the restaurant has had a history of criminal violence and McDonald's has failed to provide for adequate security to ensure her safety.
Second, plaintiff argues that McDonald's, again as an alleged possessor of land, has a duty to protect her against harm from McDonald's franchisee's negligence occurring at the restaurant. Plaintiff finds the basis for this second theory in comment c of section 344, which states in pertinent part that:
c. Independent contractors and concessionaires. The rule stated [in section 344] applies to the acts of independent contractors and concessionaires who are employed or permitted to carry on activities upon the land. The possessor is required to exercise reasonable care, for the protection of the public who enter, to supervise the activities of the contractor or concessionaire.
(Emphasis added.) Restatement (Second) of Torts § 344 cmt. c.
Among other allegations of negligence, plaintiff asserts that the franchisee's managerial employee, Geiger, was not appropriately trained because Geiger failed...
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