A federal court in California recently granted summary judgment in favor of a hotel franchisor on sex trafficking claims brought under the Trafficking Victims Protection Reauthorization Act (TVPRA). J.M. v. Red Roof Inns, Inc., 2024 WL 4534479 (E.D. Cal. Oct. 21, 2024). Although the plaintiff was allegedly trafficked at a franchised hotel, the plaintiff brought her claims against the franchisor of the hotel, Red Roof Inns. The plaintiff claimed that the franchisor was directly liable for her trafficking and that it was liable under the TVPRA via perpetrator, beneficiary, and vicarious liability theories. The court found no triable issue of fact as to any of the claims.
First, the court granted summary judgment to the franchisor regarding perpetrator liability because the plaintiff could not provide sufficient evidence to establish that the franchised hotel's employees knew about the alleged trafficking and that the employees reported these events to the franchisor. Next, the court rejected the beneficiary liability theory, explaining again how the record failed to demonstrate that the franchised hotel ever informed the franchisor about the alleged criminal activity during the time plaintiff was allegedly trafficked. Finally, the court rejected the vicarious liability theory because plaintiff was unable to establish a connection between the franchised hotel and the franchisor. The plaintiff argued that franchisor handled the marketing for the franchised location, provided the online room reservation system, and provided the property management system that tracked which rooms needed to be cleaned. However, the court observed that in the TVPRA context, the franchisor-franchisee relationship does not necessarily create an agency relationship unless the franchisor exercises control over the day-to-day operations of the franchisee. The record lacked such evidence. Accordingly, the court granted franchisor's motion for summary judgment.
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