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1. DEVRY MGMT 520 Week 5 Case Study (Jane Lifeguard, John,
Lionel and Evelyn Harrymore) NEW
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Week 5 Case Study –
Jane worked at the local country club pool as a lifeguard, not a
swim teacher, for the summer of 2013. Jane was a public school
physical education teacher. The country club did not do a
background check or confirm any references when they hired
her. They relied on the “say-so” or Jane’s brother, a member of
the country club board of directors. The country club only did a
cursory internet search of the state’s Department of Education
website to verify that she had a valid teaching certificate.
When one of the swim instructors unexpectedly quite one day,
she took over the class. Initially, the class went well.
Eventually, Jane also took over coaching the club’s competitive
swim team. When she became the swimming coach, Jane
effectively stopped “teaching” the swim classes. Instead, she
had all the swimmers in the classes do races and train for
competitive meets during the 30 minute lessons. Jane had done
this many times during the summer. Her boss, the country club
director, knew this and, as the swim team was winning, ignored
complaints from parents and students. Jane raced with the
swimmers and pushed the winners out of the way when they

2. tried to touch the side of the pool so that Jane’s team would win
each time. This was not the first time that Jane had injured
swimmers. Last year, she was arrested for physically abusing a
child she coached at her school. Although the criminal charges
were dropped, Jane is on administrative leave from her public
school job until an administrative hearing with the state
Department of Education can be held in the fall. The incident
was reported in several local papers, and her administrative
suspension is listed on the state’s database.
Several of the children, ages 6-8 reported to their parents that
they had been physically assaulted by Jane while in swim class
for not “working hard enough!” The children had bruises on
their shoulders. In addition, Jane began “approaching” an 18
year old college student who worked as a lifeguard and assisted
Jane with the coaching. Over time, Jane’s “advances” toward the
young man became very aggressive. Jane continued even
though the young man asked him to stop. In fact, after the
young man told Jane to stop as he felt harassed, Jane hired
another lifeguard to assist him with the coaching. The country
club director was aware of this situation, but as the swim team
was winning, he took the position that it was an interpersonal
issue that the two should workout among themselves.
Several parents brought suit against the local country club, Jane
and the country club director. The young life guard has also
brought suit. The local country club pool alleges that they are
not liable. Discuss the liability issues, agency issues, and all
defenses available to the local country club pool.
John, Lionel and Evelyn Harrymore, siblings and actors, decide
to retire after years on the road. They remember a town in
Illinois they were familiar with from their travels. From the
internet, they learn of a farm a few miles outside of town that
seems ideal. There is a great house, and lots of land. The

3. Harrymores wish to convert the farm to a restaurant-hotel with
a dinner theater. They contact the realtor by phone, and make
arrangements to buy the parcel. The Harrymores plan on
traveling to Illinois prior to the closing to look things over, but
are unable to do so due to their touring schedule. The realtor,
whose commission is technically paid by the proceeds to the
seller, and who has a listing contract with the seller, advises the
Harrymores that she will handle everything. Illinois custom,
law and practice does not require a purchaser of land to have
an attorney. The realtor does only the bare minimum needed
for title to transfer to the Harrymores. On their behalf, she only
has a minimal title search and minimal inspections done, and
she obtains a minimal coverage title insurance policy. As the
area near the farm was once occupied by a large chemical plant,
when the realtor represents local purchasers, as a precaution,
she advises the buyers to get the maximum possible title search
and title insurance, and to get all possible inspections done. It
is her regular practice to caution local purchasers that she
represents about the former chemical plant.
After closing on the property, the Harrymores learn of the old
chemical plant. They seek your advice as to their liability and
the liability of any other parties.