Category Archives: Claims

Hospitality Industry Safety Risks: Texas Hotel Sued For "Negligence" After Man Slips And Falls Down Flight Of Stairs; Failure To Post Warning Of Wet Carpet

“…According to the lawsuit, the hotel had washed, shampooed or cleaned its carpets prior to Steele’s arrival and left them in a wet and slippery condition without any warning to Steele…”

The defendant is accused of negligence for failing to inspect its premises to be sure that they were free of unreasonably dangerous conditions, dry its floors after cleaning, limit access to areas in which the floors were not yet dry, warn its invitees of the existence of the wet floors, select and hire competent contractors in such a way as to ensure that they were not creating an unreasonable risk of harm to invitees.

A Louisiana man has filed a lawsuit against the owners of a Comfort Inn claiming that they failed to warn him that the carpet was wet, which caused him to fall down an entire flight of stairs. Walter Steele filed suit against Laxmi Lodging Inc. on Oct. 12 in the Eastern District of Texas, Marshall Division.

The incident occurred on Sept. 9, 2012 as Steele was attempting to exit a Comfort Inn in Palestine, Texas, owned by the defendant by the way of the staircase when his foot slipped on the wet flooring causing him to fall down an entire flight of stairs and onto the concrete floor.  The fall caused Steele serious and permanent disabling injuries to his back and spine.

The plaintiff is seeking damages for medical expenses, lost earnings, physical impairment, pain, suffering, mental anguish, and lost earning capacity.

For more:  http://setexasrecord.com/news/275705-hotel-owner-sued-after-patron-falls-down-flight-of-stairs

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Filed under Claims, Guest Issues, Injuries, Insurance, Maintenance, Management And Ownership, Risk Management

Hospitality Industry Safety Risks: Hotel Guests At Risk Of Injury As Shower Door Glass Can Shatter With The "Force Of An Explosion"

“…court records (documented)…a federal lawsuit filed earlier this year against the Four Seasons Hotel in Chicago. A woman, who stayed at the hotel in 2007, says she opened a shower door and suddenly “the force of an explosion” threw here “violently across the toilet” and caused her “serious injuries.” Pictures are filed with the lawsuit showing tiny particles of glass layered on the hotel bathroom and filling the toilet…”

Hotels need to be really vigilant about this problem…(says) a glass expert who may soon testify in three cases where guests were injured when their shower doors shattered… “The two main types of injuries are where their bodies get cut and the other ones are where they are walking out on glass and cutting their feet.”

Another couple posts video on Vimeo showing what allegedly happened to them during their Hawaiian honeymoon at the Ohana Hotel in Waikiki West. You can hear the water running from the shower, see his wife standing in the water, and feel her pain as she obviously had to find a way out through shattered glass all over the floor. The new groom, Lance Ogren, looks into his own home video camera and says, “I heard her start to open (the shower) and I heard a big crash.” Ogren tells CBS 11 news the hotel gave them an apology and a new room.

Meshulam says most shower doors have tempered glass which is heated and then cooled creating tension for durability. He demonstrated how hard it is to break slamming a hammer into a tempered glass shower door several times before it finally shatters. He says the door are considered safe because under stress they shatter into tiny pieces; however, he says there are several reasons why a shower door might explode.

One is a small crack, like the one in your windshield, that just slowly grows out like a spider web. “When it hits a certain part of the glass where all those internal tensions are residing then everything blows up.” He also says towel bars might not be installed properly. Or, doors may not slide on the tracks correctly. These can cause pressure over time. Finally, there could be a problem during the manufacturing process if a microscopic grain of nickel sulfide gets trapped inside the glass. This manufacturing defect is a “ticking time bomb.”

For more:  http://dfw.cbslocal.com/2012/09/28/cbs-11-investigates-shattering-shower-doors/

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Filed under Claims, Guest Issues, Injuries, Insurance, Liability, Management And Ownership, Risk Management

Hospitality Industry Health Risks: "Wrongful Death" Lawsuit Filed Against Illinois Hotel For Legionnaire's Disease Outbreak Tied To Fountain In Lobby

“…Health officials tied the outbreak to the main fountain in  the hotel lobby. The plaintiff …alleges the  hotel didn’t properly maintain the fountain and said the company neglected to  prevent visitors from walking near the fountain when the hotel should have known  about the bacteria…”

The family of a Florida man who died after catching  Legionnaire’s disease at a Loop hotel has filed a wrongful death suit against  Marriott International. Luis Enrique Acevedo Muro was one of three people who died  after being exposed to Legionella bacteria at the JW Marriott Chicago Hotel, at  151 W. Adams St., according to the lawsuit and public health officials.

Acevedo Muro, of Key Biscayne, Fla., contracted Legionnaire’s  disease after  staying at the hotel from Aug. 1 to Aug. 3, the suit claims. He  died Aug. 14.

The eight-count suit, filed Wednesday in Cook County Circuit  Court,  claims wrongful death and survival action against Marriott and   Chicago-based developer The Prime Group, Inc.  It seeks an unspecified  amount in  damages. Neither company could be reached for comment Wednesday evening.

Legionnaires’ disease is contracted by breathing in mist or  vapors from water contaminated with the Legionella bacteria and usually develops  two to 14 days after exposure. It frequently begins with headache, high fever  and chills, and progresses by the second or third day to include a cough, chest  pain and shortness of breath.

Source: http://www.nbcchicago.com/news/local/legionnaires-disease-outbreak-chicago-hotel-marriot-171439911.html#ixzz27g7k8GHy

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Filed under Claims, Guest Issues, Health, Injuries, Insurance, Liability, Maintenance, Risk Management

Hospitality Industry Property Risks: Texas Restaurant Rebuilds After Electrical Fire Causes More Than $40,000 In Damage; Insurance Policy Covers Employee Payroll

“…a fire struck the backside of the building. It is still undetermined as to what exactly caused the one-alarm fire, which left approximately $40,000 in electrical damage…thanks to the preservation of its original pits and an insurance policy that has kept their employees on the payroll since the incident… it will feel as if Hutchins BBQ never closed…”

At first, a hopeful Tim believed the restaurant would be up and running in a couple of weeks. But with more planning and red tape to navigate than originally expected, he and his father, Roy, recovering a business from fire entailed much more than he anticipated.

The fire originated in the rear of the building and destroyed its back wall and pit room, which housed two wood-burning rotisserie pits, a trademark of the family namesake.

“It was devastating,,” Roy said. “We’ve put in 14 restaurants since 1975, and this is the first fire we’ve ever had.”

With the damages being more expensive than he originally thought, Tim believes the worst is behind them, and said he and his father are resting easier now that they can see the progress taking shape.

“A lot of times with a lot of restaurants, this could put you under,” Tim said.  “Thankfully, this is something I’ve been able to do.”

The restaurant, which has been at that location since 1991, will look very similar to way it was before the fire, except for a completely new pit room constructed of steel and cement, no wood, Roy said.

For more:  http://www.scntx.com/articles/2012/09/19/mckinney_courier-gazette/news/8971.txt

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Filed under Business Interruption Insurance, Claims, Fire, Insurance, Labor Issues, Management And Ownership, Risk Management

Hospitality Industry Legal Risks: Pennsylvania Restaurant Franchise Settles "Class-Action Discrimination Lawsuit"; Employees Denied Promotion Can Get Compensation For "Lost Opportunities"

The lawsuit said that the company relegated black employees to  back-of-the-kitchen work and denied them promotional opportunities…Under the settlement, anyone who worked for Covelli’s Panera franchises from  Jan. 11, 2008, through Jan. 11, 2012, for more than one year, and applied for or  wanted a promotion, can get compensation for alleged lost opportunities…for  each hour worked after their first year, they can get 70 cents — roughly what  they would have gotten through a one-level promotion.

Around 200 to 300 current or former employees of Panera Bread franchisee  Covelli Enterprises stand to get payments under a class action lawsuit  settlement that won preliminary approval from a federal judge at a hearing  today.

Attorney Sam Cordes, who represents Mr. Vines and the class of employees,  told U.S. District Chief Judge Gary Lancaster that the settlement terms will  soon be published in newspapers in areas in which Covelli franchises  operate.

Judge Lancaster gave the settlement his initial nod, though he is expected to  hold a hearing to hear any objections from class members. Neither Mr. Cordes nor the attorney for Covelli would comment after the  hearing. Neither had an estimate of the costs to the firm.

In addition to the payments to black employees, Mr. Vines would get $10,000  and Mr. Cordes $66,000 under the settlement agreement.

Read more: http://www.post-gazette.com/stories/local/region/panera-class-action-settlement-gets-preliminary-approval-653740/#ixzz26pWk7kLY

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

Hospitality Industry Legal Risks: Restaurants Forced To Settle "Class-Action Lawsuits" For "Wage And Hour" Claims; Potential Damages Are Double Wages Owed Dating Back 2-6 Years

“… a restaurant  is permitted to require front-of-the house employees to “pool” their tips, the  pool may be illegal if it is shared with employees who interact with customers  only indirectly. And if the pool is illegal, regardless of the reason, the  restaurant can incur enormous liabilities to employees, even if those employees  each collect hundreds of dollars per week in tips, which is often the case…”

The hospitality industry is under siege by attorneys who stand to gain big  fees from huge class-action settlements. The same gains do not apply, however,  to the waitstaff and other restaurant employees on whose behalf these lawsuits  are filed.

On a federal level, wage and hour claims are brought under the Fair Labor  Standards Act, passed in the 1930s to address intolerable conditions, such as  child labor and six-day workweeks of 10- to 12-hour days without overtime pay.  Such conditions were long ago eradicated from most restaurants and other  establishments, but the FLSA, as well as state wage and hour laws, have  continued to expand by prohibiting common practices that many eateries have  followed for years.

When faced with class actions, most restaurants have few options. Potential  damages often amount to double the wages or tips owed, dating back from two to  six years. Prejudgment interest rates can be as high as 9%, depending on the  state, and plaintiffs’ “reasonable” attorneys’ fees can be enough to put many  operations out of business. Not included here are the costs of defense counsel,  the hit to the restaurant’s reputation, and the disruption of daily operations.  For many owners, settling the plaintiffs’ claims, regardless of their merit, is  the most reasonable business decision.

Read more: http://www.crainsnewyork.com/article/20120916/OPINION/309169972#ixzz26e5yTkfQ

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

Hospitality Industry Property Risks: Las Vegas Hotel "Trash Chute Fire" Caused By Sparks From Workers Grinding Metal; $100,000 In Damage

“…Sprinklers inside the chute activated to control the fire, but firefighters found smoldering material in or around the trash chutes from the second to the ninth floors…sparks produced by workers grinding metal with an industrial tool around the trash chute caused the fire…”

Clark County Firefighters were called Thursday morning to the Strip to extinguish a fire in a trash chute at the Planet Hollywood, which caused an estimated $100,000 in damage.

Firefighters responded to reports of smoke at 10:12 a.m. and discovered the fire, which was quickly contained, in a fifth-floor chute in the north hotel tower, according to Clark County spokesman Dan Kulin.

Heavy smoke was reported on several floors, and the fifth, sixth and seventh floors were evacuated, Kulin said.

For more:  http://www.lasvegassun.com/news/2012/sep/13/planet-hollywood-trash-chute-fire-extinguished/

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Filed under Claims, Fire, Insurance, Maintenance, Management And Ownership, Risk Management

Hospitality Industry Legal Risks: Georgia Restaurant Group Settles Alcohol-Related "Wrongful Death Lawsuit" For $1.1 Million; "Post-Shift Drinking By Employees Is Rampant In Restaurant Industry"

 “It is rampant in the restaurant industry…it is a
culture of post-shift drinking, and in some restaurants, drinking during the
shift. It’s almost like a fringe benefit in some high-end restaurants, this
tradition of drinking after work.”

Husk’s owner, Marietta, Ga.-based Neighborhood Dining Group Inc., and its insurer agreed last month to settle the suit for $1.1 million. The company denied fault or liability.

The fiery crash and lawsuit also have put restaurants across the USA on notice that a tradition at many restaurants — in which employees share a drink after work in a spirit of camaraderie — can have devastating consequences.

The 4 a.m. crash occurred last December, when Adam Burnell, 32, an assistant manager and sommelier at Charleston’s Husk restaurant, allegedly drove his Audi into the back of a Mustang driven by Quentin Miller, 32. The crash slammed Miller’s car into a concrete wall; it erupted in flames, trapping him inside. He died at the scene. Burnell, who prosecutors said had a blood-alcohol level of 0.24%, three times the legal limit, was charged with felony driving under the influence.

Miller’s family filed a wrongful-death lawsuit, alleging that Husk allowed Burnell to drink to excess on its premises after hours and then drive drunk. It was a stumble for a restaurant that was named “Best New Restaurant in America” by Bon Appetit magazine months earlier. Husk also was ranked one of the “101 Best Places to Eat in the World” by Newsweek magazine last month.

Burnell, who sustained minor injuries and is awaiting trial, was not named as a defendant.

Neighborhood Dining Group already had a policy that prohibits employees of its four restaurants — three in Charleston and one in Atlanta — from drinking on the premises, President David Howard says.

For more:  http://www.usatoday.com/news/nation/story/2012-09-04/restaurants-drinking-lawsuit-crash-south-carolina/57586486/1

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

Hospitality Industry Property Risks: Hawaii Hotel And Resort Fire Starts On Second Floor Of Older Building With "Shake Roof" That Burns Quickly And Collapses; $1.4 Million In Damages

“….the structure was old, making it more difficult to fully extinguish the fire…the roof material is wooden shake which made it burn faster…the fire caused about $1.4 million in damage…”

Maui firefighters spent their labor day battling a blaze at the Valley Isle Resort in Kahana. The fire was called in just after 6 a.m. Monday. Maui firefighters say it started on the second floor of a two-story building. Thick smoke and flames poured out from the roof which partially collapsed as more than 60 firefighters battled the flames.

Mainaga says a defensive tactic was necessary because the whole roof could come down, so firefighters had to stay outside. Firefighters evacuated the building as well as the Valley Isle Resort, a hotel and condominium building right next door.

The two-story building is part of the resort and has offices as well as a fitness center. “Yes that explains why the thing burned so fast.” said Mainaga.

Mainaga says no one was in the unit where the fire started and everyone was evacuated in time, so nobody was hurt.

For more:  http://www.khon2.com/news/local/story/UPDATE-Fire-at-Maui-resort-causes-1-4-million-in/dMVY1kLSOkC_q-z_iHg4Kw.cspx

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Filed under Claims, Fire, Insurance, Maintenance

Hospitality Industry Property Risks: California Hotel And Restaurant Fire Caused By Electrical Malfunction; Over $400,000 In Roof And Water Damage

“…The blaze damaged the inn’s roof and attic, and there was water damage to the upper floors…damage is estimated at between $400,000 and $500,000…”

An electrical malfunction in a bathroom might have caused a fire at the Calistoga Inn Tuesday morning, a Calistoga firefighter said. The fire was reported at 3:13 a.m. at the inn, restaurant and brewery located at 1250 Lincoln Ave.

Guests were evacuated as crews began to battle the flames.  Twelve of the hotel’s 18 rooms were occupied, mostly by couples, Tamagni said. No injuries were reported.

For more: http://sanfrancisco.cbslocal.com/2012/08/28/electrical-fire-causes-half-a-million-in-damage-to-calistoga-inn/

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Filed under Claims, Fire, Insurance, Maintenance, Management And Ownership, Risk Management