McGuigan v. Southern Pacific Co

In McGuigan v. Southern Pacific Co. (1954) 129 Cal.App.2d 482, a hospital was funded by a railroad and the hospital's doctors were hired at the direction of the railroad. A spouse of an employee brought an action against the railroad to recover damages for the death of her husband, claiming that his death resulted from the negligence of the employer, or from the negligence of others for whom the employer was liable. (Id. at p. 483.) The court held the railroad was liable because the hospital and its doctors were agents of the railroad as a matter of law. (Id. at p. 493-494.) The court reasoned "although the hospital may be an independent contractor in many respects, if a financial benefit accrues to the employer by the operation" of the hospital or the employer operates the hospital itself, the doctrine of respondeat superior applies. (Id. at p. 495.)