Category Archives: Claims

by | January 7, 2012 · 8:11 am

Hospitality Industry Legal Risks: Pennsylvania Hotel Owner Settles "Wrongful Death" Lawsuit For Over $250,000 Of Man Who Was Trapped By "Suction Of The Pool Drain"

“…Mr. Williams’ widow… sued the club and its owner, Daniel Griffin, along with Elmhurst Corp., the hotel owner, claiming her husband became trapped in the suction of the pool drain…”

The settlement is confidential and lawyers would not discuss it, although court filings indicate that Mr. Williams’ daughter in Buffalo, N.Y., received $264,000, which represents part of the settlement.

A wrongful death suit against a Downtown hotel and a defunct athletic club involving the drowning of a Penn Hills man in 2009 has been settled for an undisclosed amount. Lorenzo Williams, 38, drowned on April 11, 2009, in the pool at the former Downtown Athletic Club adjacent to the Doubletree City Center.

Ms. Williams said Mr. Griffin, who rented the space for the club from the hotel, was negligent in not making sure the pool was safe by installing a drain cover as required by federal law.

The club closed in May 2009 after its lease expired.

The crux of the case was the Virginia Graeme Baker Pool and Spa Safety Act, a federal law passed in 2007 requiring all pools and spas to have special drain covers to keep children from getting trapped.

The law was created after Virginia Baker, the 8-year-old granddaughter of former Secretary of State James Baker III, drowned in 2002 after being trapped by a hot tub drain.

Read more: http://www.post-gazette.com/pg/12007/1202018-53.stm#ixzz1imyIW57P

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by | January 5, 2012 · 6:42 am

Hospitality Industry Property Risks: Florida Hotel Fire Possibly Caused By Guest "Manufacturing Drugs"; $35,000 In Property Damage And Contents Loss

“…firefighters suspected that the room could have been used to manufacture drugs. Investigators noted that the occupant was seen “running away with soot and possibly with burns…”

 “Heavy fire was coming from the 4th floor southeast corner” when crews began to arrive at the hotel…

The Office of the State Fire Marshal is investigating to determine what caused a 1:00 a.m. hotel fire that resulted in the evacuation of dozens of guests and racked up an estimated $35,000 in property damage and contents loss during the wee hours of Wednesday morning.

First responders launched an immediate search for victims, evacuated guests on adjoining floors, established a water supply and began to attack the flames.

Once extinguished, crews searched for additional fire above, behind and beside the fire room, Aviles said. “Once the fire was extinguished crews left the scene intact for incoming investigators.” According to the fire report, the major damage was confined to the 4th floor hotel room and did not spread.

Sheriff’s representative Chuck Mulligan told reporters this afternoon that the police may have located the occupant of the room, however, details have not yet been confirmed.

For more:  http://www.historiccity.com/2012/staugustine/news/florida/injuries-reported-ramada-inn-fire-morning-21950

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by | December 28, 2011 · 6:26 am

Hospitality Industry Liability Risks: Hawaii Hotel Is Found "Liable" In "Slip-And-Fall Accident" As State Supreme Court Rules "Known Or Obvious Danger" Defense Not Viable

“…Michele R. Steigman sought to recover damages after suffering a slip-and-fall accident while she was a guest of Outrigger Enterprises’ Ohana Surf Hotel….The case went to trial, and a jury found that Outrigger was not negligent…”

“… in Hawaii, the known or obvious danger defense is no longer viable as a complete bar to an injured plaintiff’s claim in the context of premises liability.”

The Hawaii Supreme Court has ruled the “known or obvious danger” defense is no longer viable under state law as a complete bar to an injured plaintiff’s premises liability claim. Steigman’s appeal to the Intermediate Court of Appeals resulted in an affirmation of the trial court’s final judgment.

Steigman’s attorneys argued that the ruling goes against a comparative negligence law passed by Hawaii’s legislature in 1969 and modified several times.

The statue states: “Contributory negligence shall not bar recovery in any action by any person or the person’s legal representative to recover damages for negligence resulting in death or in injury to person or property, if such negligence was not greater than the negligence of the person or in the case of more than one person, the aggregate negligence of such persons against whom recovery is sought, but any damages allowed shall be diminished in proportion to the amount of negligence attributable to the person for whose injury, damage or death recovery is made.”

Therefore the court ruled the traditional “known and obvious danger defense” conflicts with that statute.

“Steigman contends that the traditional known or obvious danger defense conflicts with the Legislature’s intent behind the comparative negligence statute. We agree,” the court stated in its ruling.

For more:  http://www.insurancejournal.com/news/west/2011/12/27/228806.htm

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by | December 20, 2011 · 7:01 am

Hospitality Industry Property Risks: Thirty-Five Niagara Falls Motel Rooms Extensively Damaged By "Partying High School Students"; Difficulties In Collecting From Parents And School

“…The room was a prime example of the swath of destruction cut through the motel. Holes had been punched in the wall, furniture broken and bathroom ceiling tiles had been ripped out in the bathroom…”

“…Initial estimates the owners have received peg the amount of damage to between $50,000 and $100,000…”

“…(the owner) simply hopes that parents of the students will step up and take responsibility…That hasn’t happened so far…”

Thirty-five rooms at the Avenue Inn on Lundy’s Lane were rented to high school students from Welland’s Notre Dame College School the night of the school’s Christmas semiformal, which was held up the street at the Americana Resort and Conference Centre. Overnight on Friday, Dec. 9, 22 of those rooms were damaged extensively.

“I don’t want to see this happen again,” David Linqi Liu, general manager and co-owner of the Avenue Inn motel said as he continued to sift through the wreckage of what was once Room 135 at the motel. As he walks around the room, the crunching of broken glass beneath his feet can be heard.
“We’ve had a lot of parties here, but we’ve never had this much damage,” said Harry Liu, David’s son who helps his dad and mother, Ling Cao run the Avenue as he flipped through an album of photos documenting the destruction. “A toilet was smashed, furniture and beds were overturned, a door was kicked in, a door was broken. Even an oven door was ripped off and its glass broken.”
According to Robert Forget, the on-duty manager the night of the incident, police were called by a motel guest not associated with the party. “They did show up for a little bit but they told us it was our responsibility,” Forget said. “They said it was a civil matter, not criminal.”

For more:  http://www.niagarathisweek.com/iphone/news/article/1262771–students-wreak-havoc-in-falls

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by | December 13, 2011 · 6:48 am

Hospitality Industry Reputation Risks: Hotel's Must Protect Against Events And Fallout From Attacks Against Company's Brand And Reputation

“… there is no shortage of reputational risks from social media and the Internet in general, from corporate manslaughter, money laundering, corporate corruption, and terrorism…”

With the boom in social media, interest in reputational risk has itself boomed. The term refers to a company’s risk of having its reputation damaged because of certain events or incidents and the fallout that takes place because of these incidents. In some cases, the effects can be severe enough to put a company out of business.

ReputationGuard was designed to help insureds cope with reputational threats, providing access to reputation and crisis communications firms Burson-Marsteller and Porter Novelli and coverage for costs associated with avoiding or minimizing the potential impact of negative publicity.

There are two categories of coverage:

  1. For reputation attacks: a public attack upon a company’s reputation. The costs of hiring communications experts from the Chartis panel and communications costs.
  2. For reputation threats: acts or events that the company believes, if made public, would have a material impact on the company’s reputation and would be seen as a breach of trust by the company’s stakeholders.

Insurers will not exclude any business segments but most interest is in those with revenues of $500,000 to $2 billion.

For more:  http://www.insurancejournal.com/uncategorized/2011/12/13/226947.htm

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by | December 6, 2011 · 6:53 am

Hospitality Industry Guest Privacy Risks: New "Invasion Of Privacy" Lawsuit Filed Against Tennessee Hotel By ESPN Reporter Who Seeks $6 Million For "Negligence And Infliction Of Emotional Distress"

“…The lawsuit charges that Barrett called the Marriott and was told which room Andrews would be staying in and then rented the room next to her…”

The lawsuit accuses Marriott of negligence, infliction of emotional distress and invasion of privacy and seeks at least $2 million in damages for each of the claims. Barrett was accused of the same claims in addition to disclosure of private facts, and the lawsuit seeks $1 million for each claim against him.

ESPN reporter Erin Andrews filed a new lawsuit in Davidson County Circuit Court last week accusing the Nashville hotel where she was unknowingly videotaped in the nude in 2008 of invasion of privacy, negligence and infliction of emotional stress.

In addition to the West End Marriott Hotel, Andrews also named convicted perpetrator Michael Barrett in the lawsuit. Barrett, an Illinois resident, was sentenced to two and a half years in federal prison in 2010 for stalking Andrews as she traveled around the country to cover sporting events for ESPN and filming her in her hotel rooms.

For more:  http://www.tennessean.com/article/20111206/NEWS03/312060024/ESPN-s-Erin-Andrews-files-new-invasion-of-privacy-suit

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Filed under Claims, Crime, Guest Issues, Insurance, Labor Issues, Management And Ownership, Privacy, Risk Management

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by | December 3, 2011 · 1:50 am

Hospitality Industry Employee Risks: "Employment Practices Liability Insurance" Policies Can Protect Hotel Owners From Costly Litigation When Using Social Media In Hiring Process

For a price comparatively nominal to the cost of litigation, employers can purchase an employment-practices liability insurance policy (EPLI). An EPLI policy provides protection for the employer from the economic and noneconomic losses resulting from employment-related claims, including but not limited to claims of wrongful termination, discrimination, harassment or retaliation.

  In addition to an employer’s risk-management portfolio for social media, an employer’s overall risk management should include an EPLI policy to protect them from the costly litigation associated with labor and employment.

Employers need to have a solid social-media policy in place. This policy should:

  • Outline what constitutes inappropriate use of social media, from personal use during work hours to the type of content posted, including defamatory language about the company.
  • Address the penalties for disclosure of trade secrets on public pages, in a language and context that can be understood clearly.
  • Address disciplinary action and termination procedures for violation of social-media use in its various forms.

Many hiring professionals and employers’ first stop during the hiring process is social-media outlets to screen applicants. They turn to LinkedIn or Facebook to learn more about an applicant’s education, their friends or even their social behavior.

Sometimes, a candidate is rejected based on content found on the applicant’s social-media pages, which could include inappropriate photos or comments, references to alcohol and substance abuse, discriminatory comments, slanderous statements and/or the sharing of confidential information regarding their previous employer, proof of poor communication skills and exaggeration of their qualifications.

While the above reasons are legitimate cause for concern, and employers advantageously have social media at their disposal to prevent negligent hiring, a business can be at risk for discrimination if accessing social-media sites that contain protected class information not privileged in the normal course of the hiring process.

To mitigate this risk, employers should use outside third parties in their hiring process, including background-verification companies and/or recruiters who document content acquired on social-media sites in the candidate-selection process.

For more:  http://www.propertycasualty360.com/2011/12/01/managing-social-media-risks-a-critical-task-for-20?t=workers-compensation

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by | December 1, 2011 · 6:04 am

Hospitality Industry Security Risks: New "High-Definition Surveillance Systems" Hold Promise Of Reducing "Theft-Related Losses And False Liability Claims"

“… high-definition surveillance system will also help the resort further eliminate costs by reducing theft-related losses in the resort’s restaurants and cafes and reduce the number and cost of false liability claims—which will cut insurance premiums over time. The security team can search and review footage much quicker, freeing them up for other important tasks…”

Avigilon, a leader in high-definition (HD) and megapixel video surveillance solutions, today announced that Bear Creek Mountain Resort and Conference Center in Berks County, Pennsylvania has deployed the Avigilon high-definition surveillance system to better protect its corporate assets and ensure the safety of its more than 315,000 annual guests. Bear Creek Mountain Resort replaced its analog-based surveillance system with the Avigilon high-definition surveillance solution for greater reliability, enhanced image quality, and the ability to more efficiently and quickly resolve incidents onsite.

Security personnel seamlessly manage the Avigilon high-definition surveillance system using the Avigilon Control Center network video management software (NVMS) with High-Definition Stream Management (HDSM) technology. The resort installed 42 Avigilon HD cameras ranging from 1 MP to 5 MP to monitor parking lots, the dock alley, the main pedestrian thoroughfare, equipment storage area, snow tubing hill, restaurants, hotel, and at the top and bottom of its chairlifts. Avigilon analog video encoders were installed to improve performance of the resort’s existing analog cameras. The system is monitored 24×7 and the resort stores 21 days of continuous surveillance video on an Avigilon Network Video Recorder (NVR.) The management team has remote access to the system as well.

For more:  http://www.securityinfowatch.com/bear-creek-mountain-resort-deploys-hd-surveillance-system

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by | October 22, 2011 · 5:20 am

Hospitality Industry Insurance Risks: California Hotel Owner Charged With Workers' Compensation Violations And Fraud

“…accused of dissuading an employee from seeking workers’ compensation after a work injury, fraud and making false claims. He is charged with two counts of insurance fraud, failure to maintain workers’ compensation insurance …”

The owner of a long-troubled Santa Cruz area inn is headed to trial on charges that he mishandled workers’ compensation and committed insurance fraud.

Sanjiv Kakkar, owner of Brookdale Inn and Spa, is accused of dissuading an employee from seeking workers’ compensation after a work injury, fraud and making false claims. He is charged with two counts of insurance fraud, failure to maintain workers’ compensation insurance and passing off bad checks, according to Kelly Walker, a prosecutor with the Santa Cruz District Attorney’s Office.

Kakkar appeared in court Friday with his attorney, Peter Leeming, to set a date of March 12 for a jury trial. A court date was also scheduled for December for a motion to consolidate the case with a second criminal case involving Kakkar. The latter case involves misdemeanor violations of health and safety codes.

Leeming said he is looking forward to finally taking the case to trial after multiple delays.

For more:  http://www.mercurynews.com/central-coast/ci_19167190

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by | October 15, 2011 · 5:22 am

Hospitality Industry Liability Risks: Arizona Hotel Found Guilty Of "Negiligence" On Appeal In Death Of Guest As Judges Find "Intended Use Of Stairway Required Center Handrail"; Carpet "Camouflaged" Dangerous Condition

“…An expert for the family testified that construction plans for the hotel, as well as its floor plan, depicted a center handrail where Volner fell… The expert also said that based on the intended use and width of the stairway, as well as applicable city building codes, a center handrail was required…”

“…the pattern on the carpet “camouflaged’’ the stairs, exacerbating the dangerous condition created by the lack of a handrail…”

The state Court of Appeals has upheld a $2.4 million verdict against a Tucson hotel where a woman tripped, fell down the stairs and died.

In a unanimous ruling, the judges rejected arguments by the owners of the Viscount Hotel that evidence of subsequent injuries is irrelevant to whether the business was negligent in this specific incident. They also brushed aside claims by the attorneys for the hotel that such evidence was prejudicial and would unfairly sway jurors against the business.

 Court records show that 78-year-old Harriet Volner was at the hotel in 2007 to have breakfast with friends when she fell at the stairs leading into the hotel’s atrium. She hit her head, went into a coma and died five days later after being taken off life support.

Her four children sued. A jury issued a $3 million judgment. But jurors concluded that Volner was 20 percent liable for her own injuries, reducing the verdict to $2.4 million.

A former hotel employee said there had been a center handrail but it had been removed and the carpeting changed. And an expert witness hired by the hotel agreed that the building code required a center handrail and it was a violation to have removed it.

For more:  http://www.ahwatukee.com/news/valley_and_state/article_a9ac7f01-7345-5d2f-8ebd-89ae0aa1271e.html

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