Category Archives: Claims

Hospitality Industry Legal Risks: Colorado Hotel Sued By Woman "Bitten By A Vicious Dog" Owned By Hotel Guest; Written "Pet Care Policies" Not Followed According To Lawsuit

“…The lawsuit claims that employees at The Little Nell hotel, which provided dog-sitting services for Babu, knew the dog had violent tendencies…”

“The Little Nell’s Guide to Petiquette,” a set of written policies governing pet care and behavior at the hotel, required that a problem dog such as Babu either be removed from the premises or have a sitter overseeing it at all times, the lawsuit said, according to the Times. The lawsuit accuses the hotel of failing to follow its policy…”

The Aspen Skiing Co. and a New York socialite couple are defendants in a lawsuit that accuses them of keeping a vicious dog that bit a woman at the Gondola Plaza. Beth Fischer, of Aspen, filed a complaint Monday in Pitkin County District Court saying she has racked up more than $200,000 in medical bills after a black Labrador retriever bit her on Sept. 18, according to the Aspen Times.

She has had multiple surgeries to her hand and resulting staph infections because of the attack, the lawsuit said. Fischer’s lawsuit said that she was walking in the Gondola Plaza, near the outdoor tables at Starbucks, when a black Labrador named Babu Sarofim “leapt up from its position and lunged directly” at her, biting her left hand.

“Fischer was able to free her left hand from Babu’s mouth and she immediately realized she was injured and bleeding from the dog bite,” the lawsuit said. A woman who witnessed the attack called 911.

For more: http://www.thedenverchannel.com/news/30907562/detail.html

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

Hospitality Industry Legal Risks: "Aggressive" Disabled Plaintiff Attorneys "Identify" Hotels And Restaurants Not In Compliance With ADA Laws And Use "People With Disabilities" To File Lawsuits

“…suits were filed by Ben-Zion Bradley Weitz, a lawyer based in Florida, who has a regular group of people with disabilities from whom he selects plaintiffs. One of them, Todd Kreisler, a man in a wheelchair who lives on the East Side of Manhattan, sued 19 businesses over 16 months – a Chinese restaurant, a liquor store and a sandwich shop among them…”

A small cadre of lawyers, some from out of state, are using New York City’s age and architectural quirkiness as the foundation for a flood of lawsuits citing violations of the Americans With Disabilities Act.

The lawyers are generally not acting on existing complaints from people with disabilities. Instead, they identify local businesses, like bagel shops and delis, that are not in compliance with the law, and then aggressively recruit plaintiffs from advocacy groups for people with disabilities.

The plaintiffs typically collect $500 for each suit, and each plaintiff can be used several times over. The lawyers, meanwhile, make several thousands of dollars, because the civil rights law entitles them to legal fees from the noncompliant businesses.

The practice has set off a debate about whether the lawsuits are a laudable effort, because they force businesses to make physical improvements to comply with the disabilities act, or simply a form of ambulance-chasing, with no one actually having been injured.

The suits may claim a host of problems: at a deli grocery in West Harlem, an overly steep ramp without guardrails, high shelves and a narrowing pathway near the refrigerators; at a yogurt shop in the theater district, no ramp, no bathroom doorknob that can be opened with a closed fist and exposed hot water drains under the bathroom sink; at a flower shop on the Upper East Side, no ramp and shelves that are too high.

For more:  http://mobile.nytimes.com/article?a=939650&f=22

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

Hospitality Industry Legal Risks: "Aggressive" Disabled Plaintiff Attorneys "Identify" Hotels And Restaurants Not In Compliance With ADA Laws And Use "People With Disabilities" To File Lawsuits

“…suits were filed by Ben-Zion Bradley Weitz, a lawyer based in Florida, who has a regular group of people with disabilities from whom he selects plaintiffs. One of them, Todd Kreisler, a man in a wheelchair who lives on the East Side of Manhattan, sued 19 businesses over 16 months – a Chinese restaurant, a liquor store and a sandwich shop among them…”

A small cadre of lawyers, some from out of state, are using New York City’s age and architectural quirkiness as the foundation for a flood of lawsuits citing violations of the Americans With Disabilities Act.

The lawyers are generally not acting on existing complaints from people with disabilities. Instead, they identify local businesses, like bagel shops and delis, that are not in compliance with the law, and then aggressively recruit plaintiffs from advocacy groups for people with disabilities.

The plaintiffs typically collect $500 for each suit, and each plaintiff can be used several times over. The lawyers, meanwhile, make several thousands of dollars, because the civil rights law entitles them to legal fees from the noncompliant businesses.

The practice has set off a debate about whether the lawsuits are a laudable effort, because they force businesses to make physical improvements to comply with the disabilities act, or simply a form of ambulance-chasing, with no one actually having been injured.

The suits may claim a host of problems: at a deli grocery in West Harlem, an overly steep ramp without guardrails, high shelves and a narrowing pathway near the refrigerators; at a yogurt shop in the theater district, no ramp, no bathroom doorknob that can be opened with a closed fist and exposed hot water drains under the bathroom sink; at a flower shop on the Upper East Side, no ramp and shelves that are too high.

For more:  http://mobile.nytimes.com/article?a=939650&f=22

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

Hospitality Industry Legal Risks: Hotel And Restaurant Owners Should Consider Requiring Employees To Sign Arbitration Agreements Containing "Class Action Waivers"

“….conducting a wage and hour audit and educating management on wage and hour best practices…(and) requiring employees to sign arbitration agreements containing class action waivers…(can help) prevent employees from asserting wage and hour claims in the form of a class action lawsuit…”

Class action waivers received a boost by the U.S. Supreme Court last year in a widely publicized consumer class action case in which the court found them to be legally enforceable in a mandatory arbitration agreement. The AT&T Mobility v. Concepcion decision has caused some employers to consider including class action waiver language in employee arbitration agreements to prevent class/collective wage and hour lawsuits. However, courts are still struggling with the issue of whether the right to proceed as a class/collective action can be waived under the Fair Labor Standards Act.

Waivers will be more likely to be upheld where they contain provisions providing fair relief for the employee, such as:

  • Employee chooses the venue for dispute resolution;
  • Employee is entitled to injunctive relief and punitive damages, if applicable; or
  • Employer pays some or all of the costs of the dispute resolution and/or waives claims for its own costs and fees.

For more:  http://www.lexology.com/library/detail.aspx?g=0345c278-07bc-4308-bdf2-7c7b16f0ba84

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

Hospitality Industry Legal Risks: Hotel And Restaurant Owners Should Consider Requiring Employees To Sign Arbitration Agreements Containing "Class Action Waivers"

“….conducting a wage and hour audit and educating management on wage and hour best practices…(and) requiring employees to sign arbitration agreements containing class action waivers…(can help) prevent employees from asserting wage and hour claims in the form of a class action lawsuit…”

Class action waivers received a boost by the U.S. Supreme Court last year in a widely publicized consumer class action case in which the court found them to be legally enforceable in a mandatory arbitration agreement. The AT&T Mobility v. Concepcion decision has caused some employers to consider including class action waiver language in employee arbitration agreements to prevent class/collective wage and hour lawsuits. However, courts are still struggling with the issue of whether the right to proceed as a class/collective action can be waived under the Fair Labor Standards Act.

Waivers will be more likely to be upheld where they contain provisions providing fair relief for the employee, such as:

  • Employee chooses the venue for dispute resolution;
  • Employee is entitled to injunctive relief and punitive damages, if applicable; or
  • Employer pays some or all of the costs of the dispute resolution and/or waives claims for its own costs and fees.

For more:  http://www.lexology.com/library/detail.aspx?g=0345c278-07bc-4308-bdf2-7c7b16f0ba84

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

Hospitality Industry Flood Risks: Ohio Restaurant Struggles To Reopen After "Flash Flooding" Damaged Buildings Not Covered By Flood Insurance

“(the owners)…had to replace all of the flooring and drywall in the restaurant. Some of the kitchen equipment had to be repaired, and everything else either was discarded or thoroughly cleaned…”

The buildings were not covered by flood insurance, but insurance did pay to fix the damage to their vehicles.

Not even 18 inches of water inside their restaurant, 3 feet of water outside and $60,000 in resulting damages and lost sales can curb the determination of Mark and Glenna Jones to reopen Clay’s Cafe, located on West Main Street in downtown Hebron.

The eatery, which has been in business for 15 years, closed March 15 after it was flooded as thousands of corn stalks came rushing into town. The Joneses were hoping to reopen by today, but have pushed their opening day back to Thursday.

The couple, who live in front of the restaurant, had all three of their buildings and four vehicles damaged in the flash flood.

For more:  http://www.newarkadvocate.com/article/20120328/NEWS01/203280308/Flood-damaged-Clay-s-Cafe-set-reopen-Thursday?odyssey=nav%7Chead

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

Hospitality Industry Flood Risks: Ohio Restaurant Struggles To Reopen After "Flash Flooding" Damaged Buildings Not Covered By Flood Insurance

“(the owners)…had to replace all of the flooring and drywall in the restaurant. Some of the kitchen equipment had to be repaired, and everything else either was discarded or thoroughly cleaned…”

The buildings were not covered by flood insurance, but insurance did pay to fix the damage to their vehicles.

Not even 18 inches of water inside their restaurant, 3 feet of water outside and $60,000 in resulting damages and lost sales can curb the determination of Mark and Glenna Jones to reopen Clay’s Cafe, located on West Main Street in downtown Hebron.

The eatery, which has been in business for 15 years, closed March 15 after it was flooded as thousands of corn stalks came rushing into town. The Joneses were hoping to reopen by today, but have pushed their opening day back to Thursday.

The couple, who live in front of the restaurant, had all three of their buildings and four vehicles damaged in the flash flood.

For more:  http://www.newarkadvocate.com/article/20120328/NEWS01/203280308/Flood-damaged-Clay-s-Cafe-set-reopen-Thursday?odyssey=nav%7Chead

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

Hospitality Industry Property Risks: Minnesota Hotel Kitchen "Oil Fryer Fire" Causes $100,000 In Damage

“The oil in the fryer reached its ignition temperature; the employees tried to extinguish the fire with a fire extinguisher, which was ineffective against the burning oil.”  

A fire in a Pannekoeken restaurant fryer at the Days Inn Hotel in downtown Rochester on Saturday morning caused an estimated $100,000 in damage.  Firefighters were called to the hotel, located at 6 First Ave. N.W., at 6:17 a.m., said Rochester Deputy Fire Chief Steve Belau. Employees had been opening the kitchen for the day, and had started the fryer when the mishap happened.
“After a time the fryer was noted to be boiling excessively (and) efforts by employees to shut down the fryer were unsuccessful,” Belau said.

The built-in fire extinguisher system slowed the fire, but was overcome when the fire became too large, Belau said. When firefighters arrived, there was smoke in the main floor and fire in the exhaust hood area of the kitchen. Fire was coming out of the exhaust vent on the outside.
Firefighters used two large portable fire extinguishers. At first, each time they knocked it down, it came back, Belau said. Also, it was unusually hot and smoky inside the kitchen. “Oil fires are very difficult to extinguish due to the unusually high temperatures associated with them,” he said.

For more:  http://www.postbulletin.com/news/stories/display.php?id=1491004

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

Hospitality Industry Employment Risks: Tennessee Restaurant Chain Faces "Class Action Lawsuit" Over Classifying Security Guards As "Tipped Employees"

“…employers who rely on the tip credit are advised to determine how much time each tipped employee spends on “non-tipped” activities, and if these “non-tipped” activities constitute more than 20% of the total working time for any shift, the employer must pay the employee the federal minimum wage ($7.25/hour) for all time spent on non-tipped tasks…” 

The issue in Stewart v. CUS Nashville, LLC is whether security guards at Coyote Ugly are “tipped employees” who can lawfully participate in a tip pool. Stewart was a Coyote Ugly bartender, a non-salaried tipped employee. She claims that Coyote Ugly violated the FLSA by requiring employees in her category to contribute their tips to a tip pool so the tips could be shared with, among others, security guards.

 Stewart argues that the security guards are akin to dishwashers or prep cooks and thus do not meet the definition of “tipped employees” who “customarily and regularly receive tips” under 29 U.S.C. § 203(m), (t).

Coyote Ugly argues that, based on their level of customer interaction, including “hollering” to encourage people to enter, checking identification of those who do enter, being stationed in the front of the house with patrons, assisting female patrons onto and off of the bar to dance, picking up glasses and bottles, and otherwise ensuring a safe customer experience, security guards are more akin to bus boys, maître d’s, silverware rollers, sushi chefs, and other front of the house employees who courts have held may properly share in tips.

Although premature to address the merits, the court granted conditional certification to a class of bartenders, barbacks, or waitresses at company-owned Coyote Ugly saloons who were required to share tips with security guards.

 For more:   http://www.jdsupra.com/post/documentViewer.aspx?fid=5a62a28c-b81a-4014-8c9d-025b758ee10f

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

Hospitality Industry Health Risks: West Virginia Restaurant Workers Hospitalized After Exposure To Hazardous Chemicals

Nine workers at the IHOP restaurant in the Shops at Trace Fork along Corridor G were taken to the hospital Friday morning after a worker mixed chemicals and released a cloud of hazardous material into the air.

About 50 people were inside the restaurant at about 9:15 a.m. when an employee added the wrong chemical to a dishwasher used to clean restaurant hardware.

South Charleston Fire Department Capt. Virgil White said the two chemicals — a degreaser and a chlorine-based cleaner — are used in routine cleaning at the restaurant and were mixed together in a way that created “hazardous air quality.”

Although the employees are familiar with the cleaning products used, White said, the employee “may have grabbed the wrong bottle to do his mixture with and it created this problem.”

One IHOP employee, who asked not to be identified, said “there was a big cloud of smoke and it filled up the air. It smelled like straight bleach.”

For more:  http://wvgazette.com/News/policeblotter/201202170049

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