Morrison Mahoney Associate Sarah Carroll recently obtained summary judgment on behalf of the President of a large Central Massachusetts private social services agency that provides mental health and substance abuse treatment to low income individuals. The case involved multiple subordinate employees who conspired to fraudulently divert narcotic pain medication from a client of the agency over several years.
Sarah argued that there was absolutely no evidence that the President of the agency had any knowledge of, or oversight over, the employees at issue. Further, she had no duty to implement policies to guard against this type of intentional criminal conduct. The motion was heard by Judge Wrenn in the Worcester Superior Court. He granted summary judgment to the President of the agency. Judge Wrenn also ruled that the agency could not be held vicariously liable for the actions of rogue employees who were acting outside the legitimate scope of their employment.
The only remaining claim in the case is for direct negligence by the agency in failing to discover or guard against this wrongdoing by its employees.
