Monthly Archives: August 2012

Hospitality Industry Legal Risks: Illinois Hotel Sued For "Failing To Recognize Signs Of, Inspect And Exterminate Bed Bugs In Guest Rooms"

“…(the lawsuit) is against…Marriott and the former Hickory Ridge Marriott Conference Hotel for failing to provide guests with a sanitary rooms, failing to inspect and exterminate rooms and failing to recognize signs of bed bug attacks, among other claims…”

Two women filed a lawsuit Monday in Cook County Circuit Court againstMarriott International Inc.and a now-closed Lisle Marriott Conference Center after claiming they and their respective children received numerous bed bug bites while staying at the hotel last August. April, Safford and the two children stayed at the suburban hotel from Aug. 6 to Aug. 15, 2011, according to the lawsuit.

During her stay at the hotel, April noticed bumps and bites all over her child’s “arms, hands, back, legs and scalp” while helping him get dressed, according to the lawsuit. She brought this to the attention of the manager, who asked if April had made a request for clean sheets, the lawsuit says.

The two women and both children were diagnosed as having “numerous bed bug bites from a significant infestation,” according to the lawsuit.

For more:  http://www.chicagotribune.com/news/local/suburbs/lisle/chi-women-sue-hotel-chain-over-bed-bug-bites-20120820,0,3322080.story

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Filed under Guest Issues, Health, Liability, Maintenance, Management And Ownership, Training

Hospitality Industry Property Risks: Delaware Restaurant Fire Caused By Electrical Failure; Unoccupied Building Suffers Significant Damage

 “… investigators determined the blaze was caused by an electrical failure in a storage room…causing approximately $100,000 in property damage to the unoccupied building…”

The Delaware fire marshal’s office says an early morning blaze that damaged a New Castle restaurant was accidental. The fire was reported shortly after 5 a.m. Sunday at the Casablanca restaurant on North DuPont Highway near Minquadale.

No injuries were reported in connection with the fire, which occurred while the building was closed and unoccupied. The fire caused an estimated $100,000 in damages.

For more:  http://www.therepublic.com/view/story/df9c669c4360469dbde60f932c9cdff2/DE–New-Castle-Fire

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Filed under Claims, Fire, Maintenance, Management And Ownership

Hospitality Industry Health Risks: California Hotels And Restaurants Must Establish Procedures And Provide Training For "Heat Illness Prevention" For All Outdoor Workers

 “…the California Department of Industrial Relations’ (DIR) Division of Occupational Safety and Health(commonly referred to as Cal/OSHA) is urging employers to protect outdoor workers from heat illness and allow for new workers to adjust to changes in weather (also known as acclimatization)…”

Cal/OSHA’s website provides employers with a Heat Illness Prevention e-tool for reference.

Under California’s first-in-the-nation heat illness prevention standard, employers with outdoor workers are required to establish and implement emergency procedures, and provide training on heat illness prevention to all workers. Every outdoor workplace must have drinking water for workers – at least one quart per hour per employee – and shade for recovery and rest periods. Shade must be provided when temperatures are above 85 degrees, and be available at employee request at any temperature. Employers are also required to train employees to properly identify heat illness symptoms.

The heat illness prevention standard was strengthened two years ago to include a high heat provision that must be implemented by five different industries when temperatures reach 95 degrees. These procedures include observing employees, closely supervising new employees, and reminding all employees throughout the shift to drink water. The specified industries include agriculture, construction, landscaping, oil and gas extraction and transportation or delivery of agricultural products, construction material or other heavy material. However, all employers are advised to take additional precautions during periods of high heat.

Read more here: http://www.sacbee.com/2012/08/15/4729437/calosha-reminds-employers-to-stay.html#storylink=cpy

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Filed under Health, Injuries, Labor Issues, Legislation, Liability, Management And Ownership, Risk Management, Training

Hospitality Industry Property Risks: Washington DC Restaurants Damaged In 2011 Flood "Reinvent Themselves" By Rebuilding With "New Concepts"

“…The establishment was hit hard by the flood…the owners used some insurance money to rebuild. But they also took the opportunity to come up with a new concept for their establishment…”

“…(the owners) renegotiated the lease and worked with Washington Harbour so insurance covered 85 percent of the about $5 million needed to rebuild the restaurants…”

Three restaurants at Washington Harbour are preparing to reopen after the spring 2011 flood that covered parts of the K Street complex in 10-plus feet of water. Tony and Joe’s Seafood Palace and Nick’s Riverside Grill are expected to fully open at the end of this week, and Farmers and Fishers plans to reopen as Farmers Fishers Bakers at the end of October. All three closed after an April 2011 storm during which MRP Realty, the company that manages the complex, raised only three-quarters of the floodgates that block the establishments from the Potomac River.

Nick Cibel, whose family owns both Tony and Joe’s and Nick’s Riverside Grill, said the flood was devastating, but he and his relatives have made the best of the situation.

“It was complete destruction at both restaurants, and everything had to be thrown away and rebuilt,” he said. “We are taking full advantage of that by reinventing ourselves. We want to be known by our food, not just the waterfront.”

Both Joe’s and Nick’s have been operating with outside seating and a reduced menu since about a month after the flood, while the interiors have undergone renovations. Tony and Joe’s has an updated design that allows for a wider, unobstructed view of the river. Nick’s Riverside Grill’s square footage has increased by 25 percent, and the restaurant will carry more international cuisine.

For more:  http://www.thegeorgetowndish.com/thedish/flood-damaged-restaurants-set-reopen

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Filed under Claims, Flood Insurance, Insurance, Maintenance, Management And Ownership

Hospitality Industry Legal Risks: California Hotel Owner Found Guilty Of Violating "Unruh Civil Rights Act" For Discrimination Against Religious Group; $1.2 Million Statutory Damages And $440,000 In Punitive Damages Awarded By Jury To Plaintiffs

“…The jury decided on Wednesday that the hotel and Adaya violated California’s Unruh Civil Rights Act, which bars hotels and other business from discriminating on the basis of sex, race, color or religion…the hotel and owner were also ordered to pay approximately $440,000 in additional punitive damages to the plaintiffs…”

A Muslim hotel owner discriminated against a Jewish group during a Southern California poolside charity event by ordering removal of banners and ousting them from the pool and spa, a jury decided in awarding $1.2 million statutory damages. The suit was filed by Friends of the Israel Defense Forces, whose members had gathered two years ago at Santa Monica’s ocean-view Hotel Shangri-LA, which is owned by Tehmina Adaya. The owner is a Muslim of Pakistani descent.

The event was organized by Platinum Events, a marketing firm that had organized other gatherings at the Shangri-La after a $30-million renovation three years ago.

Workers and security guards at the Art Deco hotel were acting on Adaya’s orders when they told members of the group to get out of the pool and spa and remove banners and literature, according to trial testimony.

In her testimony, Adaya denied ordering a halt to the event for fear that her family would cut off her financing. Adaya inherited control of the hotel from her father, Ahmad Adaya, a real estate tycoon and philanthropist who died in 2006.

For more:  http://www.jewishjournal.com/thenon-prophet/item/additional_440000_in_punitive_damages_imposed_on_hotel_shangri-la_20120816/

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Filed under Claims, Insurance, Liability, Management And Ownership, Risk Management, Training

Hospitality Industry Payment Fraud Risks: Woman Arrested After Using Stolen Credit Card With "Illegitimate Authorization Code" To Scam Florida Hotels

Police believe the alleged Discover employee was actually Betancourt’s accomplice, who gave an illegitimate code to the hotel clerk. According to investigators, codes are sold on the black market to help crooks override the system.

According to authorities, 53-year-old Debra Betancourt used an old, stolen Discover credit card linked to a closed account and a fake Arizona state ID to scam a number of hotels on Miami Beach. Police say at 11:30 p.m. Monday, Betancourt went to the Alexander Hotel on Collins Avenue. She informed a hotel employee that she made an online reservation with the stolen Discover card.

However, Betancourt’s card was declined for a charge of $4,100. Betancourt got on the phone, police said, and called someone who she said worked at Discover. The alleged employee gave the hotel clerk an authorization number, but the hotel would not complete the transaction.

Less than an hour later, at 12:15 a.m., Betancourt headed south and tried the scam again at the Cadet Hotel on James Avenue. This time, Betancourt got lucky: Her card was approved for 10 nights for a grand total of $10,105. Another hour passed, and the 53-year-old headed even further south to the Anglers Hotel on Washington Avenue, where she tried to pull the scam for the third time.

Betancourt once again ran into problems, and called the mystery Discover employee. However, the card was declined and the hotel manager contacted police. According to authorities, Betancourt kicked the manager in the groin and took off, but officers caught up with Betancourt and arrested her.

Read more: http://www.wsvn.com/news/articles/local/21008278197692/accused-hotel-scam-artist-arrested/#ixzz23ieeFMyM

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

Hospitality Industry Legal Risks: California Hotel Sued By Homeowner Claiming Noise From Events Has Caused Them "Pain And Suffering" And "Diminished Property Value"

“Plaintiffs have been hurt and injured in their health, strength, and activity, sustaining injury to their nervous system and person, all of which injuries have caused, and continue to cause, plaintiffs great mental, physical, and nervous pain and suffering,” said the lawsuit.

The lawsuit seeks an injunction barring the resort from generating noise that disturbs the Mendez family, such as amplified music, and unspecified monetary damages.

A Fairbanks Ranch couple has sued the Rancho Valencia Resort, alleging that noise from resort events has caused them pain and suffering, diminished their property value and violated county noise ordinances.

Angel and Linda Mendez, who live on Avenida Las Perlas, filed their lawsuit in Vista Superior Court on May 22. The lawsuit alleges that the problem has occurred since a group of investors purchased the resort, at 5926 Valencia Circle in April 2010.

“Defendants, and each of them, have occupied, used, and maintained these premises in such a manner that the sound of music, shouting and other accompanying noises generated by means of a loudspeaker, sound amplification system, public address system, or otherwise, during parties hosted by defendants, and each of them, travels well beyond the borders of the defendants’ property and into the Mendez property,” said the lawsuit.

For more:  http://www.ranchosantafereview.com/2012/08/14/lawsuit-regarding-noise-issues-filed-against-resort-in-rancho-santa-fe/

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Filed under Insurance, Liability, Maintenance, Management And Ownership, Risk Management

Hospitality Industry Employment Risks: California Hotel Sued By Former Hostess For "Harassment And Religious Discrimination"

“…Boudlal alleges in a lawsuit filed Monday, that her co-workers began taunting her, calling the Moroccan-born Muslim a “terrorist,” a “camel” and someone who learned how to make bombs at her mosque. She complained to her managers verbally and in writing, she said, with no results…”

Imane Boudlal is suing Walt Disney Corp. in federal court, saying that she was discriminated against and harassed for her religious beliefs. She also alleges that she unfairly lost her job in 2010 after refusing to remove her head scarf at work.

“It’s been hard,” Boudlal said in an interview. “I thought it was just a matter of complaining and a few days, and it wouldn’t affect my life, but it turns out … nothing has been done.”

The lawsuit charges that Boudlal, who is a naturalized U.S. citizen, decided to wear her hijab full time in 2010, about eight months after she began wearing it publicly. She contacted her supervisors at Disneyland to request an exemption to the company’s “look” policy — general appearance guidelines that, according to a Disney website, touch on items ranging from contact lens color and visible tattoos to personal hygiene.

For more:  http://www.latimes.com/news/local/la-me-disney-muslim-lawsuit-20120814,0,2971071.story

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Filed under Employment Practices Liability, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management, Training

Hospitality Industry Legal Risks: Restaurant Owners Need To Obtain "Product Liability And Completed Operations Insurance" To Cover "Gluten-Free" Menu Items

“…a growing trend toward “gluten-free” menu items at America’s restaurants and catered events is increasing the demand for product liability and completed operations insurance, designed to protect food-service businesses against lawsuits arising from bad reactions to food products…”

The “gluten-free” trend is helping many establishments appeal to millions of Americans who are seeking gluten-free options for a variety of reasons, including gluten sensitivities (claimed by up to 10 percent of Americans, according to the National Institutes of Health) and celiac disease (diagnosed in about 1 percent of the U.S. population, or 3 million people). While offering more options for these customers makes for good public relations, it also opens the door to a new level of potential liability.

While any restaurant could face a lawsuit arising from alleged food poisoning or food allergies, those promising “gluten-free” menu items are at even greater risk of a lawsuit if a customer should choose these options and still have a reaction. Because there are currently no standards that define exactly what constitutes “gluten-free,” some restaurants may be promoting a “gluten-free” product that is prepared in the same area as foods containing gluten, raising the potential for cross-contamination. While many people with sensitivities may not have reactions to small amounts of gluten, others with higher levels of sensitivity could have a severe reaction, raising the potential for lawsuits.

Thankfully, food service businesses — including restaurants, catering businesses, and other food service providers — can protect themselves against the high cost of lawsuits by purchasing a type of insurance known as “product liability and completed operations” coverage. This insurance not only covers lawsuits related to gluten reactions, but also those related to other food allergies, food poisoning, or other injuries or damages caused by the products a restaurant or caterer sells.

For more:  http://www.restaurantnews.com/gluten-free-trend-spurs-demand-for-restaurant-liability-insurance/

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Filed under Food Illnesses, Health, Insurance, Liability, Management And Ownership, Risk Management

Hospitality Industry Legal Risks: California Hotel Sued By Nine Guests Claiming They Contracted Meningitis From Hotel Pool; Suit Seeks Damages For Premises Liability And Negligence

“…The plaintiffs claim the hotel failed to sanitize the pool, fill it with clean water, use purification chemicals or “obtain proper certification of health & safety codes to reopen pool and water park facilities after pool closure.”

They seek medical costs, damages and punitive damages for premises liability, negligence, gross negligence, public nuisance and loss of consortium.

Nine people claim they contracted meningitis and/or other deadly diseases two years ago from a pool at the Grand Pacific Palisades Resort in Carlsbad. Lead plaintiff Gerald Green claim that during their stay in August 2010 the hotel failed to properly sanitize its family swimming pool. Plaintiff claim that hotel staff told them later that “the pool had been closed due to prior fecal or other form of contamination.”

“Plaintiffs were caused to sustain severe personal injuries, including, but not limited to symptoms of fever, headache, myalgias [muscle pain], vomiting and diarrhea, resulting in diagnoses to include meningitis and aggravated multiple sclerosis,” the complaint states.
Meningitis is a potentially fatal disease caused by inflammation of the protective membranes of the brain and spinal cord. Multiple sclerosis, which causes damage to nerves in the brain and spinal cord, is a debilitating disease with no known cure.

For more:  http://www.courthousenews.com/2012/08/06/49015.htm

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Filed under Claims, Guest Issues, Health, Injuries, Insurance, Liability, Maintenance, Management And Ownership, Pool And Spa, Risk Management