The Tennessee Supreme Court this week dealt a blow to businesses and insurance companies, finding that employers can no longer argue that direct negligence claims are barred when the business admits vicarious liability for a worker’s actions.
“We hold that the preemption rule is incompatible with Tennessee’s system of comparative fault and decline to adopt it,” the court said in a slip-and-fall case against Trader Joe’s that has become a bellwether for multiple industries.
The decision finally puts to rest long-standing questions about when employers can use vicarious liability to bar direct negligence claims and