Oliveria-Brooks v. ReMax International

CourtAppellate Court of Illinois
DecidedMarch 21, 2007
Docket1-05-3967 Rel
StatusPublished

This text of Oliveria-Brooks v. ReMax International (Oliveria-Brooks v. ReMax International) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oliveria-Brooks v. ReMax International, (Ill. Ct. App. 2007).

Opinion

THIRD DIVISION March 21, 2007

No. 1-05-3967

CHRISTINE OLIVEIRA-BROOKS, ) Appeal from Guardian of the Estate of Ana Marie de ) the Circuit Court Oliveira Fernandes, a Disabled Person, ) of Cook County. ) Plaintiff-Appellant, ) ) v. ) ) RE/MAX INTERNATIONAL, INC., a ) Corporation, ) ) No. 01 L 15993 Defendant-Appellee ) ) (Roaring Fork Capital Partners, Inc., a ) Corporation, d/b/a Re/Max Northern Illinois, ) Antonio Nascimento, Mario J. Moretti, and ) T.S.W. #1, Inc., a Corporation, a/k/a Re/Max ) Midtown, ) Honorable ) Diane J. Larsen, Defendants.) ) Judge Presiding.

PRESIDING JUSTICE THEIS delivered the opinion of the court:

Plaintiff, Christine Oliveira-Brooks, as guardian of the estate of Ana Maria de Oliveira

Fernandes, a disabled person, appeals from the order of the circuit court granting summary

judgment in favor of defendant, Re/Max International, Inc. (Re/Max International). Plaintiff

alleged that Re/Max International was vicariously liable for injuries Fernandes sustained in a

accident while a passenger in a car driven by defendant Antonio Nascimento, a real estate sales

associate affiliated with a Re/Max franchise. On appeal, plaintiff contends that summary 1-05-3967

judgment is not warranted because there is a genuine issue of material fact as to whether she

established an actual or apparent agency relationship sufficient to hold Re/Max International

vicariously liable for the alleged negligent conduct of Nascimento. For the following reasons, we

affirm the judgment of the circuit court.

BACKGROUND

At the outset, we set forth and delineate the identity of the various defendants. It is

undisputed that Re/Max International is the owner and licensor of the Re/Max trademarks and is

engaged in the business of selling Re/Max franchises. Nevertheless, in 1977, it assigned its right

to sell franchises in Illinois to the predecessor of Roaring Fork Capital Partners, Inc. doing

business as Re/Max Northern Illinois, under a regional licensing agreement. By assigning its

right to franchise, Re/Max International cannot sell franchises in Illinois, it has no ownership

interest in Re/Max Northern Illinois or its franchisees, and has no contractual relationship with

its franchisees or their sales associates. Re/Max Northern Illinois is the exclusive subfranchisor

of local Re/Max franchises in the northern Illinois region.1

Re/Max Midtown is a real estate brokerage business that entered into a franchise

agreement with Re/Max Northern Illinois to establish a local Re/Max franchise.2 Nascimento

1 Plaintiff’s claim against Re/Max Northern Illinois settled prior to a ruling on its summary judgment motion. 2 The trial court granted Re/Max Midtown’s motion for summary judgment on its apparent agency claim, but denied its motion with respect to plaintiff’s claim of actual agency. Thus, for purposes of this appeal, we assume that Nascimento was an agent of Re/Max Midtown. A separate appeal was taken with respect to Re/Max Midtown’s claim of apparent agency, but that appeal has been stayed due to Midtown’s bankruptcy filing.

-2- 1-05-3967

was a licensed real estate sales associate affiliated with Re/Max Midtown through an

independent contractor agreement.

On September 24, 2001, while Nascimento was driving Fernandes and her son, Alex, to

view some real estate property for sale, Nascimento’s car collided with another vehicle and

Fernandes was seriously injured. In her third amended complaint, plaintiff alleged that

Nascimento was an actual or apparent agent of the entities Re/Max Midtown, Re/Max Northern

Illinois, and Re/Max International and that Nascimento was acting in the course of his agency at

the time of the collision. Plaintiff further alleged that Nascimento, individually and as an actual

or apparent agent of these entities, was negligent in failing to keep a proper and sufficient

lookout and in failing to follow various rules of the road under the Illinois Vehicle Code (625

ILCS 5/11-100 et seq. (West 2000)).

During the pendency of the lawsuit, Re/Max International filed a motion for summary

judgment against plaintiff, asserting that there was no actual or apparent agency relationship

between Re/Max International and Nascimento. Therein, with respect to actual agency, it argued

that the express provisions of the various agreements excluded an agency relationship, and it had

no right to control or supervise the daily business activities of Re/Max Midtown or its sales

associates. In support of its arguments, it attached the regional licensing agreement, the franchise

agreement, the independent contractor agreement, and documents promulgated by Re/Max

International, including trademark and graphic standards and its policy and procedure manual.

Additionally, it attached deposition testimony from the following individuals: Re/Max

International representatives, Re/Max Midtown’s broker/owner, Nascimento, and Alex. Also

-3- 1-05-3967

attached was Nascimento’s business card indicating that each Re/Max office was independently

owned and operated. With respect to the apparent agency claim, Re/Max International denied

that plaintiff had come forward with any evidence that it held Nascimento out as its agent or that

there was any evidence that Fernandes actually relied on any apparent agency relationship

between Re/Max International and Nascimento.

The various agreements attempt to set forth the relationship between and among the

Re/Max entities and affiliated sales associates. Under the terms of the regional licensing

agreement, Re/Max Northern Illinois was granted “complete control, authority, and the right to

conduct the business as [it] deem[ed] appropriate.” The franchise agreement between Re/Max

Northern Illinois and Midtown provides that Re/Max International and Re/Max Northern Illinois

do not “exercise control over or attempt to influence the day-to-day activities or business

methods of [Re/Max Midtown] [or] assume responsibility for the actions of [Re/Max Midtown].”

The franchise agreement further defines the relationship of Re/Max Midtown as an independent

contractor. Under the terms of the franchise agreement, Midtown was obligated to identify its

franchise as being an independently owned and operated real estate service office.

Additionally, Nascimento had entered into a written agreement as part of his affiliation

with Re/Max Midtown. That agreement provided in pertinent part:

“[Nascimento] shall be deemed to be an independent contractor.

[Nascimento] shall be free to devote to his real estate service

business such portion of his entire time, energy, effort and skill as

he sees fit and to establish his own endeavors. [Nascimento] shall

-4- 1-05-3967

not be required to keep definite office hours, attend sales meetings

or training sessions or adhere to sales quotas or participate in ‘floor

time.’ [Nascimento] shall not have mandatory duties except those

imposed by law or regulation and those specifically set out in this

Agreement. Nothing contained in this Agreement shall be

regarded as creating any relationship (employer/employee, joint

venture, partnership, shareholder) between the parties other than

the independent contractor relationship as set forth in this

Agreement.”

Additionally, the contract provided that Nascimento was required to adhere to office policies of

Re/Max Midtown and the “System Standards” set forth by Re/Max Northern Illinois and Re/Max

International.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hayman v. Ramada Inn, Inc.
357 S.E.2d 394 (Court of Appeals of North Carolina, 1987)
York v. Rush-Presbyterian-St. Luke's Medical Center
854 N.E.2d 635 (Illinois Supreme Court, 2006)
O'BANNER v. McDonald's Corp.
670 N.E.2d 632 (Illinois Supreme Court, 1996)
Knox College v. Celotex Corp.
430 N.E.2d 976 (Illinois Supreme Court, 1981)
Salisbury v. Chapman Realty
465 N.E.2d 127 (Appellate Court of Illinois, 1984)
Pantaleo v. Our Lady of the Resurrection Medical Center
696 N.E.2d 717 (Appellate Court of Illinois, 1998)
Monti v. Silver Cross Hosp.
637 N.E.2d 427 (Appellate Court of Illinois, 1994)
Chicago Title & Trust Co. v. Sisters of St. Mary
637 N.E.2d 543 (Appellate Court of Illinois, 1994)
Moy v. County of Cook
640 N.E.2d 926 (Illinois Supreme Court, 1994)
Chatham Foot Specialists, P.C. v. Health Care Service Corp.
837 N.E.2d 48 (Illinois Supreme Court, 2005)
Gilbert v. Sycamore Municipal Hospital
622 N.E.2d 788 (Illinois Supreme Court, 1993)
O'BANNER v. McDonald's Corp.
653 N.E.2d 1267 (Appellate Court of Illinois, 1995)
Robidoux v. Oliphant
775 N.E.2d 987 (Illinois Supreme Court, 2002)
Boettcher v. Fournie Farms, Inc.
612 N.E.2d 969 (Appellate Court of Illinois, 1993)
Connick v. Suzuki Motor Co., Ltd.
675 N.E.2d 584 (Illinois Supreme Court, 1996)
Slates v. International House of Pancakes, Inc.
413 N.E.2d 457 (Appellate Court of Illinois, 1980)
Nosbaum Ex Rel. Harding v. Martini
726 N.E.2d 84 (Appellate Court of Illinois, 2000)
Anderson v. Boy Scouts of America, Inc.
589 N.E.2d 892 (Appellate Court of Illinois, 1992)
Monti v. Silver Cross Hospital
262 Ill. App. 3d 503 (Appellate Court of Illinois, 1994)

Cite This Page — Counsel Stack

Bluebook (online)
Oliveria-Brooks v. ReMax International, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oliveria-brooks-v-remax-international-illappct-2007.