Hoover v. Sun Oil Company
Superior Court of Delaware
212 A.2d 214 (1965)
The Hoovers (plaintiffs) were injured in a fire caused by the negligence of an employee at a service station owned by Sun Oil (defendant) but operated by Barone (defendant) under a lease (with rent tied to gasoline sales volume) and a separate dealer's agreement requiring Barone to buy and sell Sun products under the Sun label without mixing in competitors' products, while a Sun representative made weekly, non-binding advisory visits. Barone set his own hours, bore his own risk of loss, and had sole authority over his own employees; the Hoovers argued Barone acted as Sun's agent, making Sun liable, and Sun moved for summary judgment on the theory that Barone was an independent contractor.
Whether an oil company is liable for the negligence of a service station operator's employee when the oil company lacks authority over the station's day-to-day business operations.