Category Archives: Insurance

by | February 24, 2013 · 7:39 am

Hospitality Industry Insurance Risks: California Restaurant Owners Charged With “Felony Worker’s Compensation Fraud” For Failing To Insure Twelve Employees; Fines Totalling $18,000

“…an anonymous complaint (alleged) that the restaurant did not have workers’ comp insurance as required by law…following a visit to the restaurant, a civil citation (was issued) with penalties totaling $18,000 for failing workers comp fraudto insure their 12 employees…businesses not carrying valid workers’ compensation coverage are considered uninsured and face a “Stop Notice and Penalty Assessment” from the Labor Commissioner and fines of $1,500 per employee, up to $100,000. If an injury occurs, the fine increases to $10,000 per employee. A worker injured while working for an uninsured employer can sue for damages and the employer is presumed negligent in such cases…”

The owners of a restaurant in San Marcos, Calif. have been charged with felony counts of workers’ compensation fraud and forgery following a referral by the California Labor Commissioner Julie A. Su’s criminal investigation unit to the San Diego District Attorney’s Office.

The district attorney’s charges, filed in San Diego Superior Court on Jan. 29, allege that Rhythm City Grill owners John Fletcher Johnson and Annette Lucille Thomas each committed two felony counts of forgery of a workers comp insurance policy and a misdemeanor charge of conducting business without workers’ compe insurance. Johnson was also charged with an additional felony for submitting a false document to a government agency. He and Thomas were arraigned Feb. 14.

If convicted, Johnson and Thomas face up to 16 years in prison for the felony charges. The failure to secure workers’ comp insurance carries a misdemeanor charge of 1 year and a fine.

For more: http://www.insurancejournal.com/news/west/2013/02/19/281769.htm

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by | February 23, 2013 · 8:35 am

Hospitality Industry Legal Risks: New York Restaurants Now “Randomly Targeted” For Wage Violations By Labor Department; “Liquidated Damages” Can Double Back Wages Owed

“…officials at the local U.S. Department of Labor office say that in prior years, they relied on employee tips to launch investigations… the random inspections now drive as many investigations as employee Hospitality Industry Wage Violation Lawsuitscomplaints…those probes increasingly turned up egregious violations including kitchen workers being paid as little as $2 an hour…Starting in 2011, the office launched a restaurant initiative, focusing on a different segment each year. The initial focus was pizza and pasta restaurants. Last year it was diners; this year, Asian restaurants…”

The U.S. Department of Labor is targeting Long Island‘s largest private-sector employer, the restaurant industry, charging it with widespread minimum-wage and overtime violations.

The department has launched a campaign of random inspections with growing impact: In the 12 months through Sept. 30, it obtained court orders against 89 employers for such violations on the Island — about half of the roughly 180 orders obtained in all the United States by the Wage and Hour Division of the Department of Labor, according to Irv Miljoner, the Westbury-based district director for Long Island. Of the Island employers being sanctioned, 66 are restaurants.

As part of the stepped-up litigation, local Labor officials are increasingly seeking liquidated damages, which double the back wages owed. “Before this we would just go in and we would get back wages for a two-year period, and they would pay it and we’re done,” said Richard Mormile, assistant director of the Long Island office. “We have upped those consequences.”

Overall in fiscal year 2012, the office’s investigators found that local employers, mostly restaurants and diners, owed $8.6 million in back wages, up 28 percent from $6.7 million they uncovered the year before.

This year’s effort has already resulted in one of the largest settlements ever for the local office. An Asian restaurant chain with two locations on Long Island — Asian Moon, in Garden City and Massapequa Park — and a location in Westchester agreed to a court order requiring it to pay more than $1 million to settle charges that it underpaid 255 employees over three years and altered records to hide the violations. The department’s lawsuit charged that food preparers and dishwashers worked 55 hours a week without being paid overtime.

For more:  http://www.newsday.com/classifieds/jobs/u-s-labor-dept-checks-li-restaurants-for-wage-violations-1.4694410

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by | February 22, 2013 · 6:54 am

Hospitality Industry Legal Risks: Restaurant Owners Increasingly Targeted With EEOC Lawsuits Over “Family Medical Leave Act” Liability; Employees Who Use Up “Available Paid Sick Leave” Assert Disability Rights

“…Previously, if an employee had exhausted all twelve weeks of FMLA leave and any other available leave, they could be terminated without employer liability…however, the EEOC recently has taken the position that Paid Sick Leave In Hospitality Industryonce leave is exhausted under the FMLA, this can trigger an employer’s affirmative duty to provide a reasonable accommodation  to an employee’s disability, which can include providing additional leave..”

For 2013, food service employers can expect a continued aggressive approach from the Equal Empoyments Opportunity Commission (“EEOC”) as to violations of the Americans with Disabilities Act (“ADA”) in the restaurant industry.  The significant increase of ADA charges and lawsuits by the EEOC and private claimants, which began in early 2012, shows little sign of abating in the new year.

Back in 2008, Congress passed the Americans with Disabilities Act Amendment Act (“ADAAA”), which was intended to counter a series of U.S. Supreme Court decisions that significantly limited employees’ ability to assert and prevail in disability lawsuits.  Under the ADAAA, and the EEOC’s final regulations, approved in 2011, the definition of what constitutes a disability was significantly broadened.  As a result, employees who previously would not have been considered disabledEEOC under the ADA, now fall under its statutory protections.  Prior to the amended Act, employers could often prevail in litigation on the basis of whether the employee actually was considered disabled under the narrow interpretations of the Supreme Court decisions.  With the new broad definition, most cases now hinge on whether the employer reasonably accommodated the employee’s disability..

One source of increased litigation and attention from the EEOC is when the ADA intersects with the Family and Medical Leave Act (“FMLA”) as to leave for a serious medical condition.   Under this scenario, employees who were terminated after exhausting FMLA leave are asserting EEOC Charges and filing lawsuits under the ADA.  Employers are also being forced to agree to high dollar settlements with the EEOC to avoid the prospect of the federal agency filing suit on behalf of employees and former employees.

For more:  http://www.bluemaumau.org/surge_ada_disability_lawsuits_continue_2013_restaurant_and_food_service_employers_crosshairs

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by | February 21, 2013 · 6:31 am

Hospitality Industry Legal Risks: Colorado Hotel And Restaurant Sued By Woman Who “Drank Bleach In A Water Glass”; Lawsuit Seeks $100,000 For “Negligence And Breach Of Implied Warranties Of Merchantability And Wholesomeness Of Food”

“…(plaintiff) suffered serious and continual medical problems, including the inability to eat effectively, persistent acid reflux syndrome, digestive problems and other symptoms…(her) relationship with her husband Hospitality Industry Injury Lawsuitsand her ability to care for her children have been affected…among the claims in the lawsuit are negligence, breach of implied warranties of “merchantability and wholesomeness of food,” loss of consortium and a violation of Colorado’s premises liability statute…”

A Basalt woman is suing the owner and operator of the Viceroy Snowmass, alleging that she was served and drank out of a glass that had bleach in it at the hotel’s Eight K restaurant. The incident happened during brunch in February 2011, according to the lawsuit by Janine and John Reichert. The suit, filed Tuesday in Pitkin County District Court, seeks more than $100,000. It lists Base Village Owner, the hotel’s owner, and Viceroy operator KHM Snowmass as the defendants.

After being seated, a waiter poured water for the Reicherts’ party from a pitcher, wrote their attorney, Alan Feldman of Aspen, in the lawsuit. “Immediately after Janine drank from the glass, she jumped up out of her seat, stating that she had drank chemicals and needed to get to the bathroom as she was going to throw up,” the lawsuit says. “Janine’s throat began to burn and swell up. … [She] raced to the restroom, where she became violently ill.”

John Reichert dipped his finger in her glass and allegedly tasted a bleach solution. The wait staff then cleared all of the glasses from the table and disposed of their contents, Feldman wrote. One Eight K employee allegedly told John Reichert that “it is typical for the water pitchers to be soaked in a solution of bleach for sterilization and that the waiter could have picked up a water jug soaking in this bleach solution, believing it to be drinking water,” Feldman wrote.

However, as Janine Reichert was talking to a poison-control operator, a manager allegedly told her that she had ingested merely the residue from the bleach left on the jug.

For more:  http://www.aspendailynews.com/section/home/156795

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by | February 17, 2013 · 6:57 am

Hospitality Industry Legal Risks: Illinois Nightclub Sued By Man Stabbed In The Chest By Patron Who Was “Over-Served Alcohol”

“…(plaintiff) required emergency surgery after he was stabbed in the chest…the lawsuit says (he) suffered severe and permanent injuries and “will be hindered and prevented from attending to his usual duties and Alcohol Drink Responsiblyaffairs…the suit alleges that Olaska’s intoxication played a role in the stabbing. A restaurant employee was also injured in the fight…”

A man who was stabbed during a confrontation that cost a Naperville teacher his life has filed a lawsuit against the club where the clash happened. William Hayes III is suing Frankie’s Blue Room in Naperville and owner Riff Menza, claiming the bar over-served Daniel Olaska, who is awaiting trial on charges that he wounded Hayes and killed Shaun Wild in February 2012.

Authorities have said that Hayes had been teasing Olaska about drinking beer from a wine glass when Olsaka stabbed him with a folding knife he was carrying. Wild, a second-grade teacher at a Naperville school and a friend of Hayes’, was attempting to stop Olaska from leaving the bar when Olaska fatally stabbed him, according to police.

Hayes was a senior at nearby North Central College when the incident occurred. Wild was a 2010 graduate of the college. Both played for the school’s football team.

For more:  http://articles.chicagotribune.com/2013-02-15/news/chi-naperville-frankies-blue-room-stabbing-lawsuit-20130215_1_daniel-olaska-shaun-wild-naperville-bar

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by | February 16, 2013 · 6:41 am

Hospitality Industry Legal Risks: Texas Man Born Without Hands Sues Amusement Park After “Operator Refused To Let Him On Ride”

“…after (he) complained to the park, Six Flags changed its policy for the ride he was not allowed to board. Now, a person must have “one full arm and one full leg” for entry…Bench says he hopes his lawsuit will change the Hospitality Industry ADA Lawsuitsway the park handles disabled customers and safety concerns. He says he hopes to “set a precedent that there is a better solution than what’s in place now.”

A Texas man born without hands is suing a major theme park after he was barred from a ride allegedly because of his disability. Clint Bench says he had been to the Six Flags in Arlington many times and never had a problem with the staff. But on a trip to the theme park in May, an operator refused to let him on a ride.

Bench went to guest services but had no luck. So he hired a lawyer and is now suing the park for violating the Americans with Disabilities Act.

“We repeatedly offered to resolve this with Six Flags for not a dollar. Clint was absolutely adamant when he came to me that this was not about him getting a dollar,” his lawyer Levi McCathern said.

Read more: http://www.nydailynews.com/news/national/clint-bench-flags-times-issuese-riding-knew-knew-article-1.1264187#ixzz2L4ZII2j2

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by | February 14, 2013 · 6:34 am

Hospitality Industry Legal Risks: Tennessee Hotel Sued By Guest Who Lacerated Leg On Bed Frame; $400,000 Sought For “Lost Wages, Suffering And Disfigurement”

“…a cap on the horizontal support bar of the bed frame extended out several inches from the box spring, and the cap, made of a stone-like material, was chipped, creating a sharp edge. The sharp edge was hidden by a bed Hospitality Industry Injury Lawsuitsskirt draped over the box spring, “concealing the sharp edge from plaintiff’s view…(she had to be) treated for infection and other complications from the laceration (resulting in) medical expenses, pain and suffering, lost wages, and scarring and disfigurement…”

A Florida widow and freelance author and illustrator has sued the Red Roof Inn in Clinton for up to $400,000 over a leg laceration she says she received while staying at the hotel in August. Lauretta J. Evans, 76, said she was on her way home to Florida on Aug. 7 when she stopped at the Red Roof Inn on Buffalo Road, according to a lawsuit filed in Anderson County Circuit Court on Feb. 8.

As she prepared to go to sleep, Evans said, she sat on a bed in the room and “immediately felt a sharp and intense pain in her lower left leg. Plaintiff looked down to see that she had sustained a severe laceration to her lower left leg, and perceived that she was bleeding profusely,” the lawsuit said.

It said emergency medical personnel were called to the scene, and Evans was taken to the University of Tennessee Medical Center in Knoxville.

“This concealed sharp edge constituted a dangerous condition that represented a latent defect undiscoverable by the plaintiff,” the lawsuit said.

The Red Roof Inn, also referred to in the lawsuit as Sant Partnership, had a duty to keep its place of business, including rooms assigned to patrons such as Evans, free of “latent defects and dangerous conditions,” the suit said.

For more:  http://oakridgetoday.com/2013/02/13/florida-widow-sues-clinton-hotel-over-leg-laceration/

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by | February 12, 2013 · 6:59 am

Hospitality Industry Legal Risks: New York Restaurant Sued By Woman Hit By Car Outside Building; Neglected To Install “Curbs And Bollards”

“…the (plaintiff’s attorney) said Wendy’s only installed pedestrian safety blocks after the crash in December. He said if the restaurant had curb stops and bollards in place at the time of the incident, the tragedy would Hospitality Industry Injury Lawsuitshave been prevented…”

Theresa DiMilia and her 11-year-old daughter Samantha walked out of the Wendy’s restaurant on December 4 in Williston Park when suddenly a car being driven by an elderly woman smashed into them and pinned them against the wall. “The pain was so unbearable. I remember my daughter Samantha asking me if she was dead — ‘Am I alive mommy, am I alive?’” Theresa DiMilia told 1010 WINS’ Mona Rivera.

Their legs were crushed. Samantha DiMilia was treated and released after suffering a severely fractured leg. Now, two months later, Samantha is walking again, but Theresa DiMilia is still in a wheelchair after having both legs fractured in the incident.

The lawsuit names the driver of the vehicle who hit the DiMilias — 75-year-old Margaret Hogarty of Mineola — as well as Wendy’s International Inc. and Westbury Properties, LLC, which owns the property where the restaurant is located, as defendants.

For more:  http://newyork.cbslocal.com/2013/02/11/wendys-named-as-defendant-in-multimillion-suit-filed-by-injured-mother-daughter/

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by | February 11, 2013 · 7:15 am

Hospitality Industry Property Risks: Hawaii Restaurant Kitchen Fire Caused By Gas Leak In Deep Fat Fryer; Flames Spread Through Ventilation System Resulting In $2.5 Million In Damage

“…the cause of the fire was an accidental gas leak to a deep fat fryer.  The cause of the leak is undetermined.  A pilot light in the appliance was the source of ignition for the leaking gas…the flames spread quickly through Restaurant Firethe ventilation system, creating a challenge for firefighters…”

Honolulu Fire Department investigators said the fire started in the kitchen of The Cheesecake Factory at the Royal Hawaiian Shopping Center just before 3:30am Friday.

Damage is estimated at $2,500,000.  This includes damage to the restaurant’s kitchen, exhaust duct and smoke damage to adjacent businesses in the shopping center.

A restaurant cleaning employee described hearing an explosion and tried putting out the fire with an extinguisher.

“The ducting system is designed to move cooking grease and smoke up to the roof where there’s penetration,” said Capt. Terry Seelig, HFD spokesman. Shocked employees watched helplessly as crews worked to contain the fire.

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by | February 10, 2013 · 8:14 am

Hospitality Industry Health Risks: “Norovirus Food Poisoning” Class-Action Lawsuit Filed Against Wyoming Restaurant; Health Department Report Confirms Outbreak Source

“…according to the WDOH, 31 employees who worked at the Golden Corral restaurant were infected with norovirus while working…the lawsuit was filed on behalf of (those who) purchased food or drink at the Golden Norovirus OutbreakCorral Casper restaurant between November 20, 2012 and December 13, 2012 and (were exposed to) diarrhea and vomiting from multiple employees of the Golden Corral…”

Customers of the Casper, Wyoming Golden Corral filed a class action lawsuit against the restaurant Friday, alleging they were part of a norovirus food poisoning outbreak that was traced to food served at the restaurant in December. The lawsuit was filed in Federal District Court in Wyoming (Case Number 13CV024J) by Jason Ochs of The Ochs Law Firm and William Marler of Marler Clark.

According to a Wyoming Department of Health (WDOH) report, at least 305 patrons of the Casper Golden Corral restaurant became ill with norovirus infections after eating at the restaurant between November 17, 2012 and December 19, 2012. Norovirus infection causes nausea, diarrhea and/or vomiting and is highly infectious. Investigators from the Wyoming Department of Health Infectious Disease Epidemiology Program and Casper-Natrona County Health Department stated in their report that they were not able to determine exactly how norovirus was introduced to the restaurant, but said ill food-handlers could have contributed to the spread of norovirus among Golden Corral patrons.

The complaint states that named plaintiff Paul Feyhl, a Casper resident, ate at the Golden Corral restaurant on December 8, 2012 and subsequently fell ill with norovirus. According to court documents, the lawsuit was filed on behalf of Mr. Feyhl and “others similarly situated” who purchased food or drink at the Golden Corral Casper restaurant between November 20, 2012 and December 13, 2012 and whose exposure to norovirus was caused by:

1.    Exposure from diarrhea and vomiting from multiple employees of the Golden Corral
2.    Consumption of contaminated food and drink prepared by Golden Corral employees
3.    Exposure to, or close proximity with, persons who ate food or drink at the Golden Corral restaurant or were exposed to the restaurant’s infected employees.

For more:  http://www.prweb.com/releases/2013/2/prweb10414517.htm

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