This Law Firm Publication by Wiggan and Dana LLP discusses L and V Contractors, LLC v. Heritage Warranty Insurance Risk Retention Group, Inc., in which the Connecticut Appellate Court held that AAMCO Transmissions, Inc., a franchisor of automotive repair centers, was not vicariously liable for torts allegedly committed by an AAMCO franchisee under theories of agency or apparent authority. An agency relationship did not exist between AAMCO and its franchisee because AAMCO did not control the franchisee's business. More importantly, AAMCO was not liable under the theory of apparent authority because Connecticut courts have not applied that theory to hold a principal liable for torts committed by a person held out as the principal's agent.