SANTIAGO V. PHOENIX NEWSPAPERS, INC.
794 P.2d 138 (1990)
NATURE OF THE CASE: Santiago (P) appealed an affirmation of a summary judgment that as a
matter of law, Phoenix (D) was not vicariously liable for P's injuries resulting from an
accident involving Frausto (D), D's independent contractor.
FACTS: Frausto (D) was delivering newspapers for D when his car collided with a
motorcycle driven by P. The agreement with Frausto (D) stated he was an 'independent
contractor,' retained to provide prompt delivery of its newspapers by the times specified in
the contract. Frausto (D) had the right to operate the business as he chose, and he could
engage others to deliver papers on his route for no more than 25% of the delivery days. He
was free to pursue any other business activities, including delivering other publications,
so long as those activities did not interfere with his performance. Frausto (D) was required
to show satisfactory proof of liability insurance, a valid driver's license, and a favorable
report from the Arizona Motor Vehicle Division. P paid a set amount each week. D provided
health and disability insurance, but did not withhold any taxes. Frausto (D) considered
himself an employee and delivered the papers any way his supervisor directed him to. P sued
D for negligence under vicarious liability. The court held that Frausto (D) was an
independent contractor. P appealed and the court of appeals affirmed. The Arizona Supreme
Court granted certiorari.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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