Billops v. Magness Construction Co.

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Billops v. Magness Construction Co.
Court
Citation
Date decided

Facts

Plaintiffs rented a ballroom in the Brandywine Hilton Inn and paid rental fees in advance. On the day of the event, the banquet director demanded the rental fee and disrupted the event and harassed the guests and event coordinators.

Procedural History

Superior Ct. found no agency existed between the hotel franchisee and franchisor on Summary Judgment.

Issues

Is Hilton corporation liable for the actions of the hotel's employees and franchisees?

Holding

Yes

Judgment

Reversed and remanded.

Reasons

Franchisers had detailed and mandatory operating manuals for franchisees. Franchisors could enter premises at any time for inspection. Apparent authority existed because to the guests, Hilton Corp. and local franchisee were one and the same. Franchisees could not mention any other hotel name to guests. Color schemes were standardized for all Hilton Hotels.

Comments

Actual agency must be tried in court on the facts.