Zsigo v. Hurley Medical Center

716 N.W.2d 220, 475 Mich. 215
CourtMichigan Supreme Court
DecidedJune 14, 2006
DocketDocket 126984
StatusPublished
Cited by71 cases

This text of 716 N.W.2d 220 (Zsigo v. Hurley Medical Center) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zsigo v. Hurley Medical Center, 716 N.W.2d 220, 475 Mich. 215 (Mich. 2006).

Opinions

WEAVER, J.

The general rule of respondeat superior is that an employer is not liable for the torts of its employees who act outside the scope of their employment.1 This case raises the question whether this Court has adopted an exception to the respondeat superior rule of employer nonliability found in 1 Restatement Agency, 2d, § 219(2) (d). Under this exception, an employer would be liable for the torts of an employee acting outside the scope of his or her employment when the employee is “aided in accomplishing” the tort “by [218]*218the existence of the agency relation.”2 We hold that this Court has not previously adopted this exception, and we decline to adopt it.

We affirm in part the decision of the Court of Appeals, but for different reasons, reverse in part, and remand to the trial court for entry of a judgment of dismissal with prejudice.

FACTS

We adopt the facts as related by the Court of Appeals:

This case arises from plaintiffs allegation that defendant’s employee, a nursing assistant, sexually assaulted her in the emergency room at Hurley Medical Center on July 9, 1998. On that date, plaintiff was suffering a manic depressive episode when she was brought to defendant’s emergency department by police and placed in a treatment room. Because plaintiff was belligerent, yelling, swearing, and kicking, she was placed in restraints and administered treatment. Eventually she was left alone in the room with a nursing assistant assigned to clean the room. Plaintiff begged him to release her from the restraints.
While the aide was alone in the room with plaintiff, she continued to make sexually explicit remarks, enticing him to engage in sexual activity with her. According to plaintiff, she made these remarks “[a]t first to get him out of the room like the other nurses,” but when he went to her, she “suddenly thought he was a very powerful person in the hospital” and “would release [her.]” The aide engaged, without resistance, in digital and oral sex with plaintiff, but he did not release her and left. One of the nurses came back into the room right after the aide left. Plaintiff did not say anything because she was scared.
[219]*219Plaintiff reported the incident three days later to a social worker, police were notified, and an investigation commenced. Plaintiff believed the employee might have been a janitor because he was cleaning and she provided a general description of the employee. Through the hospital’s efforts, the nursing assistant was identified approximately three months later.[3]

Plaintiff brought a complaint against defendant Hurley Medical Center, alleging assault, battery, and intentional infliction of emotional distress.* **4 The trial court denied summary disposition on these counts, finding that there was a question of fact with regard to whether Powell’s agency relationship with defendant aided Powell in committing the tortious acts against plaintiff.

At the close of plaintiffs case, defendant moved for a directed verdict, asserting that defendant could not be hable for the torts of an employee acting outside the scope of his employment. Plaintiff, relying on this Court’s opinion in Champion v Nation Wide Security, Inc,5 argued that defendant was hable under the “aided by the agency” relationship exception to respondeat superior liability. The trial court denied defendant’s motion. The jury rendered a verdict for plaintiff in the amount of $750,000 in past damages and $500,000 in future damages. After reducing the verdict to its [220]*220present value, the trial court entered a judgment in favor of plaintiff in the amount of $1,147,247.42.

Defendant appealed, and the Court of Appeals, in an unpublished decision, reversed and remanded the case for entry of a judgment of dismissal, holding that the trial court erred in denying defendant’s motions for summary disposition and a directed verdict because plaintiff failed to present a material question of fact regarding defendant’s liability under the doctrine of respondeat superior.6 The Court of Appeals denied plaintiffs motion for reconsideration. Plaintiff sought leave to appeal, and we granted the application.7

STANDARD OF REVIEW

This Court reviews de novo a trial court’s decision on a motion for summary disposition.8 Summary disposition may be granted pursuant to MCR 2.116(0(10) when “[e]xcept as to the amount of damages, there is no genuine issue as to any material fact,” and the moving party is entitled to judgment as a matter of law.9 When reviewing a motion for summary disposition, “a trial court considers affidavits, pleadings, depositions, admissions, and other evidence... in the light most favorable to the party opposing the motion.”10

When reviewing a trial court’s decision on a motion for a directed verdict, the standard of review is de novo and the reviewing court must consider the evidence in [221]*221the light most favorable to the nonmoving party.11

ANALYSIS

Under the doctrine of respondeat superior, the general rule is that an employer is not liable for the torts intentionally or recklessly committed by an employee when those torts are beyond the scope of the employer’s business.12 1 Restatement Agency, 2d, § 219(2) sets forth the general rule of respondeat superior and also lists certain exceptions to employer nonliability:

(2) A master is not subject to liability for the torts of his servants acting outside the scope of their employment, unless:
(a) the master intended the conduct or the consequences, or
(b) the master was negligent or reckless, or
(c) the conduct violated a non-delegable duty of the master, or
(d) the servant purported to act or to speak on behalf of the principal and there was reliance upon apparent authority, or he was aided in accomplishing the tort by the existence of the agency relation.[13]

The question in this case is whether Michigan recognizes the fourth exception, § 219(2)(d), to the doctrine of respondeat superior nonliability. Plaintiff argues that Michigan has adopted, or should now adopt, the fourth exception to the respondeat superior nonliability rule. Section 219(2)(d) provides an exception to employer nonliability when a plaintiff can show that he or she [222]*222relied on the apparent authority of the employee, or that the employee was aided in harming the plaintiff by the existence of the agency relationship between the employee and the employer. Section 219(2)(d) and the commentary on that section establish that this exception to employer nonliability applies primarily to cases involving misrepresentation and deceit, for example when a store manager is able to cheat store customers because of his or her position as store manager for the owner.14

Section 219(2)(d) was first mentioned by this Court in McCann v Michigan,15

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Bluebook (online)
716 N.W.2d 220, 475 Mich. 215, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zsigo-v-hurley-medical-center-mich-2006.