Monthly Archives: March 2012

Hospitality Industry Legal Risks: Virginia Hotel Sued For $12 Million By Family Of Woman Killed By Valet Driver

“…A multi-million dollar lawsuit is filed in Richmond Civil Court, by the husband of the woman killed outside of a downtown Richmond hotel, allegedly by a valet driver for that hotel…Court documents say that (the valet) pulled out of the driveway of the hotel and instead of turning onto the street, he turned left down the sidewalk and ran right into (the woman)…”

“…Among those named in the suit is the Hilton Garden Inn. And the valet company employed at the hotel…”

In (the civil lawsuit) — Stone’s husband, John, lays out the pain, sorrow and anguish he’s been dealing. Stone died just a few days before their wedding anniversary. The suit says Josephine Stone’s death was a direct result of the negligence, recklessness and a conscious disregard for her rights and safety. The total amount wanted: more than 12 million dollars.

The Hilton released this statement, saying, “We deeply regret the tragic loss of any life especially this promising young person. We continue to work with the third party operator, parking management services, on this matter and will continue to cooperate with local authorities as we have done since this tragic accident. We continue to keep the stone family and friends in our thoughts and prayers.”

Gray is facing a involuntary manslaughter charge as well. That is set to go to a trial on May 25th.

For more:  http://www.nbc12.com/story/17170161/civil-lawsuit-filed-in-woman-killed-outside-richmond-hotel

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Filed under Guest Issues, Injuries, Insurance, Labor Issues, Liability, Management And Ownership

Hospitality Industry Legal Risks: California Hotel Owners Compliance With Americans With Disabilities Act (ADA) "Pool Lift Regulations" Is Effective March 15; Vulnerable To "Unruh Civil Rights Act" Violation Lawsuits

“…California-based businesses should be particularly worried.  The Unruh Civil Rights Act, itself a wellspring for abusive litigation, incorporates the ADA by reference, making any violation of the ADA also a violation of Unruh…Unruh has more teeth than the ADA—$4,000 per violation, regardless of intent, plus attorney’s fees…”

 The Department of Justice granted the industry’s call for a clarification: But it was not the answer they wanted. All 300,000 public pools in the United States must install a permanent fixed lift. The deadline for compliance is tomorrow, March 15. Call it “Poolmageddon.”

There is no way all 300,000 pools can install permanent lifts by Thursday. There simply are not enough lifts in existence or enough people who know how to install them, according to industry spokesmen. Plus, each lift costs between $3,000 and $10,000 and installation can add $5,000 to $10,000 to the total.

The Administration has assured the industry that it does not plan to enforce the new guidelines right away.  But the ADA contains a private enforcement mechanism, empowering private attorneys to bring suit immediately, collecting attorney’s fees from violators.  As the article mentions, trial lawyers contributed over $45 million to Obama’s campaign.

For more:  http://ordinary-gentlemen.com/timkowal/2012/03/15/new-ada-guidelines-expose-pool-operators-to-private-lawsuits/

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Filed under Labor Issues, Legislation, Liability, Maintenance, Management And Ownership, Pool And Spa, Risk Management, Training

Hospitality Industry Theft Risks: California Hotel Security Guard Charged With "Grand Theft And Burglary"; Accessed Online System To Steal Guest's Valuables

“…In his part-time security job for the hotel, Quinton was entrusted with access to an online lost and found system, which he is suspected of looting…”

“…In addition….(he) covered surveillance cameras in the hotel security office and stole $680 in cash from an office safe…”

A Los Angeles Police Department officer moonlighting as a security guard at Laguna Beach’s Surf & Sand Resort is to be charged with grand theft and burglary, the district attorney’s office said on Tuesday. Laguna Beach police, who had set up surveillance cameras within the hotel after its staff reported irregularities that began in October, arrested Quinton on Jan. 24, Lt. Jason Kravetz said.

When police arrested Quinton on Jan. 24, he had disappeared for over an hour during his shift, including from surveillance cameras police were monitoring in a spare hotel room, stealing $290 in bedding from a locked hotel storage room, and storing the items in his car. Detectives who went to Quinton’s home after the arrest seized more property, Kravetz said.

Hotel staff aided the investigation with monitoring cameras while detectives observed the employee from a hotel room. “We wanted to make sure we had a really solid case,” said Kravetz, who pointed out that most Orange County law enforcement agencies prohibit sworn officers from moonlighting in security posts or jobs involving alcohol. In Los Angeles County, officers have a long history of moonlighting as security for celebrities, he pointed out.

In October, Quinton allegedly stole cash that had been recovered from a room and secured in the hotel’s lost and found by accessing the online system and changing the cash entry into a “gold watch.” He is suspected of changing the room number where the $2,000 in cash had been found and falsely logging that the watch was returned to its owner, stealing $960 from the safe, Kim’s statement said.

For more:  http://www.lagunabeachindependent.com/2012/03/13/moonlighting-cop-charged-hotel/

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Filed under Crime, Guest Issues, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management, Theft

Hospitality Industry Legal Risks: Hotel Management Must Comply With Americans With Disabilities Act (ADA) Revisions Concerning Recreational Areas; Exercise Rooms, Saunas And Benches Are Areas Of Concern

New revisions to the Americans with Disabilities Act are bringing hotel recreational areas under the watchful eye of the U.S. Department of Justice for the first time. And unlike other guidelines covered by the 1991 ADA Standards for Accessible Design, recreation areas do not qualify for safe harbor.

Exercise rooms:

  •  The key issue in exercise rooms is clearance space, the moderators said.
  • “At least one of each type of equipment is required to be on an accessible route and have clear floor space adjacent to the equipment so that somebody is able to park their mobility device there and then get out of that device and transfer or may be able to walk and get on to this piece of equipment,” Salmen said.
  • More than one piece of equipment can share the same clear floor space, he said.
  • “This is going to have implications on how your fitness rooms are laid out, and (in) a lot of small fitness rooms you will have to do rearranging or potentially may even have to lose a piece of equipment in order to try to provide these clear floor areas,” Anderson added.

Saunas and steam rooms:

  •  Hotels must have accessible routes into saunas and steam rooms. Further, they must have enough space within the rooms so guests with disabilities can turn around and get out, Salmen said.
  • “So doors have to be compliant as per the door criteria with 32 inches of minimum clear opening width. The pressure on that door can’t be more than five pounds. The thresholds for those doors have to be compliant,” he said.

Benches:

  •  Benches in hotel locker rooms and steam rooms can be as little as 42 inches with a depth of 20 inches to 24 inches, Salmen said.
  • “But in these new rules we are now required to have a maneuvering space in front of the bench and at one end of the bench so that it is (easier to slide over) from the wheelchair seat onto the seat of the bench,” he said.
  • Benches must be attached to a wall or provide a back rest so users will have something to lean against, Salmen added.

For more:  http://www.hotelnewsnow.com/Articles.aspx/7732/ADA-standards-call-recreation-areas-into-focus

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Filed under Guest Issues, Insurance, Legislation, Liability, Maintenance, Management And Ownership, Pool And Spa, Risk Management, Training

Hospitality Industry Legal Risks: Washington Hotel And Restaurant Sued By Fired Waiter For "Discrimination, Disparate Treatment And Infliction Of Emotional Distress"

“…He contends Matt Stickle, executive chef of the hotel’s Bite restaurant, belittled him in front of customers and co-workers and that the Murano’s managers did nothing to rectify the situation when he complained. Conteh, who immigrated to the United States from Africa, contends he was treated hurtfully and unfairly because he’s black…”

A Pierce County man is suing Tacoma’s Hotel Murano and the executive chef of its high-end restaurant, contending they discriminated against him when he worked there as a waiter. Muhammed Conteh filed his lawsuit last week in Pierce County Superior Court. Conteh seeks unspecified damages for discrimination, disparate treatment and the infliction of emotional distress.

Conteh contends, among other things, that Stickle “continuously harassed plaintiff about his personal smell and would physically smell the plaintiff and embarrass him in front of customers,” according to the suit.

Conteh said he also was punished for using the kitchen telephone and engaging in horseplay with colleagues. White co-workers who engaged in similar behavior were not disciplined, he contends.

Conteh was fired in January after working at the restaurant for eight years. He has been unemployed since, said his lawyer, Thaddeus Martin.

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Filed under Labor Issues, Liability, Management And Ownership, Risk Management

Hospitality Industry Fire Risk: Ohio Hotel Fire Likely Caused By Electrical Problem In Ceiling Area Of Indoor Pool; Damage Exceeds $1 Million

“…The fire originated in the ceiling area of the indoor pool, it was likely an electrical problem, according to the release…”

“…Flames traveled from the overhang above the indoor pool to other walls in the hotel… Winds forced the smoke and fire up to the third floor and fanned the flames…”  

Holiday Inn Express employees stood huddled in thin blankets near Frisch’s Big Boy as firefighters from 10 departments attacked the building with axes and water. Smoke billowed from windows with punched-out screens on the southwest corner of the building at 773 Hebron Road. The three-alarm fire was fueled by a strong wind, up to 30 mph, from the northwest.

Firefighters tore into the building and tossed debris from open windows. Between fire truck sirens, the hotel fire alarm and radio calls of several chiefs, communication was challenging but achieved, Huggins said.

Investigators determined the damage exceeded $1 million, according to the release. Inspectors at the scene said the hotel’s fire alarm system and sprinkler system functioned properly during the blaze, according to the release.

For more:  http://www.newarkadvocate.com/article/20120309/NEWS01/120309003/Everyone-out-Holiday-Inn-Express-fire-continues

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Filed under Fire, Guest Issues, Insurance, Liability, Maintenance, Management And Ownership, Risk Management

Hospitality Industry Legal Risks: Jury Awards Maryland Woman $225,000 In Nation's Largest "Bed Bug Liability Judgment"

On Thursday, a jury ordered Calidad Furniture & Linen Inc., the store that sold Jackson a pair of wood-frame beds, to pay Jackson and her sons $225,000 for the ordeal. It is one of the largest bedbug liability judgments in the country.

Multimillion-dollar lawsuits over bedbugs have become increasingly common as infestations have spread across the country and victims seek to hold landlords, hotels and retailers responsible for their exterminator bills and mental anguish.

But a public judgment is rare in bedbug liability cases. Lawsuits seeking millions of dollars in damages have received publicity in recent years, such as several filed against the Waldorf-Astoria hotel in New York. But most fade away with confidential settlements.

In July 2010, Adarien Jackson’s 6-year-old son, Kaden, began complaining of itchy bumps on his ankles. They soon turned into a rash and spread to his back, behind his ear, and on his eyelid.

The child’s pediatrician and dermatologists tried allergy drugs, diet changes, oils and oatmeal baths. But it wasn’t until months later that Jackson discovered the cause of the problem. Kaden’s twin brother, Kyler, began waking in the middle of the night, crying out, “Bugs are crawling on me!”

Jackson realized her sons’ beds — which she had recently purchased from a furniture store in Elkridge — were teeming with bedbugs, according to a lawsuit she filed in Anne Arundel County in December 2010.

 

For more:  http://articles.baltimoresun.com/2012-03-09/news/bs-md-bed-bug-verdict-20120309_1_bedbug-infestation-bunk-beds-bed-wetting

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Filed under Guest Issues, Health, Injuries, Liability, Management And Ownership, Risk Management

Hospitality Industry Legal Risks: California Hotel Owner Charged With "Insurance Fraud" Over False Workers' Compensation Records

“…accusations that he dissuaded an employee from seeking workers’ compensation after a work injury and making false claims. The charges against him include two counts of insurance fraud, failure to maintain workers’ compensation insurance and passing bad checks…”

“…accused of paying approximately $890,000 less than he should have over a four-year period,,,”

The trial date for the owner of the troubled Brookdale Inn & Spa has been postponed because the District Attorney’s Office has filed more charges. Sanjiv Kakkar originally was scheduled to begin trial March 12 on accusations that he dissuaded an employee from seeking workers’ compensation after a work injury and making false claims. The charges against him include two counts of insurance fraud, failure to maintain workers’ compensation insurance and passing bad checks, according to Kelly Walker, a prosecutor with the Santa Cruz County District Attorney’s Office.

Walker has just filed new insurance fraud charges against Kakkar and his wife, Neelam Kakkar, pertaining to insurance premiums. Kakkar is accused of providing false wage information to insurance companies to obtain lower premiums. In other words, he “grossly understated” the amount of payroll he was paying to his employees. He stands accused of paying approximately $890,000 less than he should have over a four-year period, according to Walker.

For more:  http://www.mercurynews.com/breaking-news/ci_20133381/das-office-files-more-insurance-fraud-charges-against

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Filed under Crime, Insurance, Labor Issues, Liability, Management And Ownership

Hospitality Industry Fire Risks: "Fire Safe Hotels" Are Listed On FEMA "Hotel-Motel National Master List"

CLICK ON "HOTEL" TO VISIT NATIONAL FIRE SAFE HOTEL SITE

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Filed under Fire, Liability, Maintenance, Management And Ownership, Technology

Hospitality Industry Employment Risks: Hotel Management Compliance Audits Can Expose Potential Labor Department "Wage And Hour Division" Violations

• Make sure nonexempt employees are paid the required minimum wage. The current federal rate is $7.25 per hour (some jurisdictions require a higher rate).  Review deductions to ensure that they do not cut employees’ pay below the minimum wage.
• Be certain nonexempt employees are paid the required overtime. Ensure that all bonuses, shift differentials, service charges and other payments are properly included in computing overtime and that deductions do not improperly cut into overtime pay. 
• Pay special attention to whether nonexempt employees accurately record all worktime. Nonexempt employees must record pre- and post-shift work; shift-change overlap; opening or closing activities; compensable training time, meeting time, “on-call” work; and time spent doing work at home. Employees must record meal time and other non-compensable break time, and they must be paid when they do not take that time off. 
• Be sure that all “exempt” employees meet the requirements for exemption. Review the criteria defining who may be treated as exempt from the Fair Labor Standard Act’s minimum-wage and/or overtime requirements. “Salaried” employees are not necessarily exempt. Certain positions such as sous chefs and sales managers are vulnerable to challenge. 
• Make certain that exempt employees are paid on a salary basis. The most common FLSA exemptions require that such employees be paid on a “salary basis” and thus receive a fixed, predetermined amount for every workweek in which the employee performs any work, without regard to the number of days or hours worked or the quality of work. Salary deductions are very limited. 
• Strictly comply with child-labor restrictions. There is an age 16 limit for general occupations and an age 18 limit for occupations declared “hazardous” by the U.S. Secretary of Labor. 14 and 15 year olds may be employed in limited occupations, within strict hours and times of day limitations. Identify every employee who is 16 or 17, verify his or her age and exact duties. Identify every employee under 16, verify his or her age, exact duties and hours and times of work.
• Comply with all state and local wage-hour requirements. The FLSA does not preempt tougher state or local provisions. These other laws might include a higher minimum wage; daily overtime; minimum pay for reporting to work; more rigorous child-labor limitations; prohibitions on wage deductions; and time limits for paying employees who resign or are fired.

For more:  http://www.hotelnewsnow.com/Articles.aspx/7679/Government-audits-Get-your-house-in-order

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Filed under Labor Issues, Liability, Maintenance, Management And Ownership, Risk Management, Training