WASHINGTON - The Supreme Court today refused to shield a fast-food business in Washington state from being sued in California over a 1993 outbreak of illnesses linked to hamburgers at Jack-in-the-Box restaurants.
The justices, without comment, rejected an appeal by Washington Restaurant Management Inc. (WRMI), which once ran three Jack-in-the-Box franchises in Washington state, that California courts have no power over it.
Today's action, although not a ruling, left intact a California Supreme Court decision that forces WRMI to defend itself in a California trial scheduled to begin this month.
Three children died and hundreds of people became sick in early 1993 after eating Jack-in-the-Box burgers that allegedly were undercooked and contained E. coli bacteria.
WRMI was identified as one of the franchises which had sold the tainted hamburgers.
A number of Jack-in-the-Box franchises -- but not WRMI -- sued over lost profits as a result of the negative publicity surrounding the outbreak. The defendants included Foodmaker Inc., the San Diego-based parent of Jack-in-the-Box; the Vons Companies, which supplied ground beef for Foodmaker; and beef suppliers that had delivered meat to Vons' processing plant in El Monte, Calif.
Vons responded to the lawsuits filed in a Los Angeles court by filing a cross complaint against the owners of several Jack-in-the-Box franchises, including WRMI.
Vons alleged that the franchises negligently and recklessly undercooked hamburger patties.
WRMI sought to have the cross complaint dismissed, contending that California courts had no jurisdiction over the Washington-based company.
A state trial judge and a state appeals court agreed with WRMI, but the California Supreme Court reversed those rulings last December.
It ruled that the franchise agreements WRMI entered into with Foodmaker provided sufficient ties to California to give the state's courts jurisdiction over the Washington company.
But lawyers for WRMI say that should not be enough because WRMI never has had any contractual relationship with Vons, and Vons was not a party to the franchise agreements between WRMI and Foodmaker.
Foodmaker has settled nearly 100 lawsuits related to the 1993 outbreak. Settlements that have been disclosed range from $19,000 to $15.6 million.
The case is Washington Restaurant Management Inc. vs. The Vons Companies, 96-1762.
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