Houghton v. Aramark Educational Resources, Inc.

Summary

The Tennessee Supreme Court answered a certified question concerning whether Tennessee Department of Human Services regulations governing child care centers impose vicarious liability on a licensee for an employee's criminal acts committed outside the scope of employment. The court distinguished Gleaves v. Checker Cab Transit Corp. and held that references to a licensee's "ultimate responsibility" in definitional regulations do not, absent fault by the licensee, impose such liability.

Holdings

1. The applicable Tennessee Department of Human Services regulations do not, absent fault on the part of the licensee, provide a basis for vicarious liability for an employee's criminal acts occurring outside the scope of employment.
2. The statutorily imposed vicarious-liability rationale of Gleaves does not extend to the Tennessee Department of Human Services rules governing the licensing of day-care centers.

Questions Presented

1. Whether Tennessee Department of Human Services regulations governing the licensing and operation of day-care centers impose vicarious liability on a licensee for an employee's criminal acts occurring outside the scope of employment and absent fault by the licensee.
2. Whether the rationale of Gleaves v. Checker Cab Transit Corp. extends to the Tennessee day-care licensing regulations, particularly the regulations' designation of the licensee as having 'ultimate responsibility' for the facility.

Disposition

other