Kennan v. Checker Taxi Co., Inc.
189 Ill. Dec. 891, 620 N.E.2d 1208, 250 Ill. App. 3d 155 (1993)
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Rule of Law:
A principal is not liable for punitive damages for the tortious acts of its agent under a theory of respondeat superior unless the plaintiff proves the principal's complicity through authorization, reckless employment, the act of a managerial agent, or ratification.
Facts:
- Sean Kennan, a blind man, relied on his seeing eye dog, Ives, for assistance.
- On the morning of February 5, 1985, Kennan hailed a Checker Taxi Company cab.
- After Kennan and his dog entered the cab, the driver began screaming, "get out, I no take bitch," referring to the dog.
- The driver attempted to physically remove the dog, and when Kennan intervened to protect the dog, the driver pulled Kennan out of the cab.
- The driver then slammed Kennan against the side of the cab and hit him in the head and face multiple times until a bystander intervened.
- Kennan suffered painful bruises that lasted for several days and subsequently developed post-traumatic stress disorder, causing a persistent fear of using taxis.
- Within a day or two of the incident, an investigator from Checker visited Kennan at his home and took a written report of his account.
Procedural Posture:
- Sean Kennan sued Checker Taxi Company, Inc. and the driver in the trial court.
- Kennan's fifth amended complaint alleged assault and battery, wrongful ejectment, and sought punitive damages.
- Before trial, Kennan voluntarily dismissed the driver as a defendant.
- A jury in the trial court returned a verdict for Kennan, awarding $120,000 in compensatory damages and $193,000 in punitive damages.
- The trial court entered judgment on the jury's verdict.
- Checker filed a post-trial motion for judgment notwithstanding the verdict (n.o.v.), which the trial court denied.
- Checker, as the appellant, appealed the judgment to the Illinois Appellate Court, the state's intermediate appellate court; Kennan is the appellee.
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Issue:
Does Illinois law permit an award of punitive damages against a corporate principal for an agent's intentional tort, under a theory of respondeat superior, without evidence that the principal authorized, ratified, or was reckless in allowing the conduct?
Opinions:
Majority - Justice Cousins
No. Illinois law does not permit punitive damages against a principal on a theory of respondeat superior without a showing of corporate complicity. The court adopted the complicity rule outlined in the Restatement (Second) of Agency § 217C, as established in Mattyasovszky v. West Towns Bus Co. This rule requires a plaintiff to prove that: (a) the principal authorized the act, (b) the principal was reckless in employing an unfit agent, (c) the agent was a manager acting in the scope of employment, or (d) the principal ratified or approved the act. The court explicitly rejected Kennan's argument for a 'common carrier' exception, noting that Mattyasovszky itself involved a common carrier. Here, Kennan presented no evidence to satisfy any of the four complicity factors. Checker’s act of defending itself in a lawsuit does not constitute ratification, especially since it investigated the incident and did not continue its association with the driver.
Analysis:
This decision solidifies the strict corporate complicity requirement for punitive damages awards in Illinois vicarious liability cases. By rejecting a 'common carrier' exception, the court confirmed that the rule from Mattyasovszky applies broadly, even to industries with a heightened duty of care to the public. The ruling makes it significantly more difficult for plaintiffs to recover punitive damages from corporations for the willful and wanton acts of their non-managerial employees. Plaintiffs must now affirmatively plead and prove direct corporate fault, rather than relying solely on the nature of the employee's conduct.
