The Connecticut Appellate Court issued a significant decision last year in L&V Contractors LLC v. Heritage Warranty Insurance Risk Retention Group Inc., 136 Conn. App. 662 (2012), wherein it concluded that “the doctrine of apparent authority cannot be used to hold a principal liable for the tortious actions of its alleged agent.” Following L&V, several superior courts have held that the doctrine of apparent authority is inapplicable in medical negligence cases. This is a meaningful victory for hospitals and other institutional health care providers faced with vicarious liability claims.
The facts of L&V involved the referral of plaintiff’s vehicle to the defendant, Drive Train Unlimited LLC, for examination following a transmission failure. At the time of referral, Drive Train had an agreement with AAMCO Transmissions Inc. to use AAMCO’s name in its advertisements and letterhead in exchange for royalties. After accepting the vehicle, Drive Train failed to repair the vehicle, attempted to charge storage fees, and claimed to have sold the vehicle at auction while using it for personal purposes.
