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Georgia Supreme Court Overrules Respondeat Superior Rule – Health Law and Regulation Update Blog Post by Eric Frisch

November 3, 2020

Recent Health Law and Regulation Update Blog Post by Eric Frisch.

In a significant case, the Georgia Supreme Court has overruled the long-standing rule that an employer cannot be held independently liable for negligent entrustment, training, hiring, or supervision if it admits the employee was acting in the course and scope of employment. The underlying case involved a truck accident. The defendant employer admitted that the truck driver was its employee and acting with in the course and scope of employment. The employer moved for partial summary judgment on claims for punitive damages and negligent entrustment, hiring, training, and supervision. The trial court granted the motion based on the long-standing rule known as the Respondeat Superior Rule. Plaintiffs opposed the motion, claiming that Georgia’s apportionment statute abrogated the Respondeat Superior Rule in favor of apportioning to the employer and employee. The Georgia Court of appeals affirmed the judgment.

A majority of the Georgia Supreme Court reversed and held that the Respondeat Superior Rule is inconsistent with apportionment of damages. The Court reasoned that a claim for negligent entrustment is an independent act by the employer that, under the plain language of the statute, should be for the jury to consider when deciding percentages of fault between the plaintiff and the defendants. In particular, negligent entrustment involves the breach of a legal duty of the employer, namely, not to lend a vehicle to another to drive when there is actual knowledge that the driver is reckless or incompetent.

In a dissent, Justice Carla Wong McMillan wrote that the apportionment statute does not abrogate the Respondeat Superior Rule because apportionment applies at trial, while the Respondeat Superior Rule applies at the summary judgment phase. Justice McMillan also wrote that the Court has previously held there is no apportionment of damages when the fault is indivisible, as it is in vicarious liability situations, noting specifically the Loudermilk decision.

Take-home: This case breaks wide open claims for negligent hiring, training, and supervision in a wide variety of contexts. It also demonstrates the need for the General Assembly to revisit the apportionment statute to fulfil the stated purpose. That’s 2020 for you.

The case is Quinn v. Hulsey, ___ S.E.2d ____ (Ga.Sup.Ct. November 2, 2020).

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