By Cecile Read Poole & Shaffery, LLP In the recent case of Ayon v. Esquire Deposition Solutions, LLC (Ayon), a Court of Appeals held that an employer defendant, Esquire Deposition, a court reporting service, was not vicariously liable for damages resulting from a car accident that occurred after hours involving an Esquire employee who was speaking on her cell phone with another Esquire employee about matters that were not work-related. In general, a company may be held liable for the wrongdoing of employees committed within the scope of the employee’s employment. California case law has held that even actions that do not further the employer’s interests but arise out of the employment may lead to vicarious liability. In Ayon, the scheduling manager for Esquire was driving and talking on her cellphone to one of Esquire’s court reporters using a hands-free bluetooth telephone system in the vehicle. During the course of their call, the scheduling manager struck a pedestrian. Both the scheduling manager and court reporter testified that they were speaking about personal topics and that no work-related topics were discussed during the call. On appeal, the plaintiff argued there was sufficient evidence to raise an issue of fact regarding the content of their call to allow her to proceed with a case against Esquire under a theory of vicarious liability. The Court of Appeals held there was substantial evidence that the two employees of Esquire were not discussing work and therefore the plaintiff could not pursue damages against Esquire. While there is no bullet-proof means of eliminating such liability, good policies and procedures pertaining to driving and talking on the telephone can help and employers must follow through with discipline for employees who fail to follow such procedures. Moreover, if an employer provides cell phones to employees, the business should consider safeguards that disable the receipt of texts while the vehicle is in motion. Although these policies and procedures may come as an annoyance to employees and employers alike, they could save a company substantial costs involved in defending against a vicarious liability claim. At Poole & Shaffery LLP, we help numerous clients as it relates to the formation and governance of their business entities in the State of California. If you seek legal assistance as it relates to the maintenance of your California business entity, please feel to call us. The headquarters of Poole & Shaffery, LLP, are located at 25350 Magic Mountain Parkway, Second Floor. You can reach the firm by calling (661) 290-2991 and more information can be found at www.pooleshaffery.com.