Category Archives: Insurance

Hospitality Industry Legal Risks: Restaurant Franchisee Settles EEOC “Sexual Harassment And Retaliation Lawsuit” For $2.5 Million; Managers Made Working Conditions Intolerable

The EEOC’s suit charged that Carrols subjected a class of women – including many teenagers – to egregious sexual harassment at Burger King locations throughout the Midwest, Southeast, and Northeast. EEOC alleged that the harassment, which ranged from obscene comments, jokes, and propositions to unwanted touching, EEOCexposure of genitalia, strip searches, stalking, and even rape, was perpetrated by managers in the majority of cases. According to the EEOC, Carrols also retaliated against some of the women by cutting their hours, manufacturing discipline against them, and even firing them, while it forced more women to quit because the harassment made their working conditions intolerable.

Carrols Corporation, the world’s largest Burger King franchisee, will pay $2.5 million and take significant remedial steps to settle a sexual harassment and retaliation lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today. The lawsuit alleged discrimination against 89 female employees around the country, many of whom were teenagers when they worked for Carrols.

Sexual harassment and retaliation for complaining about it violate Title VII of the Civil Rights Act of 1964. The EEOC filed suit (Civil Action No. 98-cv-01772 FWS/TWD in U.S. District Court for the Northern District of New York) after first attempting to reach a voluntary settlement.

Under the terms of the publicly-filed consent decree resolving the case, Carrols will pay $2.5 million in compensatory damages and lost wages to the 89 victims. It also will implement a number of measures to increase employees’ awareness of Carrols’ anti-harassment policies and to improve Carrols’ response to complaints brought forward under those policies. Those measures include enhanced training for Carrols’ managers in preventing and responding to harassment; improved mechanisms for tracking harassment complaints; notices posted in all domestic Carrols Burger King locations informing employees about the lawsuit’s resolution and their rights under federal anti-discrimination laws; and an injunction prohibiting further harassment and retaliation.

For more: http://www.eeoc.gov/eeoc/newsroom/release/1-9-13.cfm

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

P3 Hospitality Industry Risk Report: “ADA Pool Lift Update” Presented By Loss Control Specialist Marco Johnson Of Petra Risk Solutions (Video)

[vimeo http://www.vimeo.com/57192729 w=500&h=281]

The January 31, 2013 ADA pool lift compliance deadline is fast approaching. Petra Risk Solutions’ Loss Control Specialist,  Marco Johnson, offers a P3 Hospitality Risk Update – ‘ADA Pool Lift Update’ – to help clear up some of the confusion about the requirements of this new ADA law.

P3 (Petra Plus Process) is the Risk Management Division of Petra Risk Solutions – America’s largest independent insurance brokerage devoted exclusively to the hospitality marketplace.

For more information on Petra and P3 visit petrarisksolutions.com or call 800.466.8951.

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Filed under Guest Issues, Injuries, Insurance, Legislation, Liability, Maintenance, Pool And Spa, Risk Management, Training

Hospitality Industry Security Risks: Illinois Hotel And Restaurant Sued For “Negligence” After Guest Attacked By Man With Knife In Restroom; “Allowed Unauthorized Access To Property”

“…The lawsuit claims the hotel and restaurant at 909 N. Michigan Avenue were negligent when they allowed Restaurant Crime“unauthorized persons to gain access to their hotel, restaurant and restroom facilities” and didn’t perform proper security checks…”

An Oak Brook doctor who was stabbed in the neck and face during an attempted holdup at a Gold Coast restaurant in November is suing his alleged attacker along with the restaurant and hotel that houses it. Mir Shah says he was violently attacked and stabbed several times by Jimmy Harris in the bathroom of the Westin’s The Grill on the Alley on Nov. 17, according to a lawsuit filed Monday in Cook County Circuit Court. The restaurant’s bartender was also injured when he chased Harris, who cut him with a knife, police said.

Harris, who also goes by the name Jimmie Harris, had been freed from prison eight days prior to the attack. He has at least 60 arrests and nine felony convictions dating to the late 1970s, according to Chicago police, state and court records.

Shah, an oncologist, was out to dinner with his family that night after attending the Lights Festival along the Magnificent Mile. While in the bathroom, Harris approached Shah and announced a robbery before stabbing the doctor in the right side of his neck and face, prosecutors said. Shah is now disfigured and disabled, according to the suit.

For more:  http://www.chicagotribune.com/news/local/breaking/chi-doctor-stabbed-after-mag-mile-lights-festival-sues-suspect-20130107,0,4498714.story

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

Hospitality Industry Property Risks: Louisiana Hotel Laundry Room Fire Causes “Heavy Water Damage” And Forces Evacuation Of Entire Building

“…The fire was found to have originated in a laundry room on the fourth floor of the hotel. The third and fourth floors sustained heavy water damage, as the sprinkler system helped to squelch the blaze…(additional Hotel fire and smoke damagefirefighters were needed) to assist with getting materials that were burned and water-damaged out of the building…”

A Saturday night fire at the CBD’s Hotel Intercontinental (444 St. Charles Ave.) damaged the middle floors of the 14-story structure, and moved guests to a nearby ballroom, according to the New Orleans Fire Department.

Firefighters went door-to-door at the 410 rooms to ensure that all guests evacuated the building. Initially, the fire was at two alarms, but the third and fourth alarms were struck to provide more manpower. A total of 31 trucks and 98 NOFD personnel were at the scene.

The fire was largely contained to the area where the fire originated, but smoke damage was reported on the floors above the fourth.

The fire was under control by 7:30 p.m. The only reports of injury in the blaze were from a guest who told authorities they were having trouble breathing. The guest refused medical assistance. The displaced guests were relocated to the second-floor ballroom in the Hilton New Orleans, which is located across St. Charles Ave.

For more:  http://noladefender.com/content/four-ala76rm-fire-dam98ages-st-charles-ave-hotel

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Filed under Fire, Guest Issues, Insurance, Management And Ownership, Risk Management

Hospitality Industry Legal Risks: New York Restaurant Sued For "Negligence" By Woman Injured By "Dog Leashed To Unanchored Chair"; Seeks $2 Million

“…(plainfiff) was injured earlier this year at the chain’s 86th and Lexington location when a dog “attached” to Hospitality Industry Lawsuitone of the restaurant’s chairs knocked her down…Shake Shack “was negligent in its failure to protect [Cirlin] from the anticipated dangers of allowing dogs to be attached by leashes to its flimsy and unanchored chairs…”

A Manhattan woman claims the Upper East Side outlet of the famed burger and hot-dog chain was a little too friendly to canine clients and their owners. Cindy Cirlin says she was injured when she was knocked down by a dog that was leashed to one of the East 86th Street restaurant’s chairs, according to a Manhattan Supreme Court lawsuit filed last week.

Cirlin wants $2 million in damages. Shake Shack did not respond to a request for comment.

For more:  http://www.nypost.com/p/news/local/manhattan/shaken_up_at_shack_3bh5OC48Z5luWG0IG1hzyK?utm_medium=rss&utm_content=Manhattan

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

Hospitality Industry Property Risks: California Restaurant Fire Starts In HVAC System And Contained By Sprinklers; $50,000 In "Significant Water Damage" To Building

“…Fire fighters say the fire started in the restaurant’s heating and air condition system and could have been Restaurant Firemuch worse…The sprinkler system did exactly what it was supposed to do. It contained the fire to a small area up in the attic…”

A fire set off the sprinkler system and flooded a popular restaurant in Fair Oaks early Saturday morning. Fire fighters arrived to find a section of Mikuni Sushi restaurant on fire. Luckily, the building sprinklers systems had gone off and contained the fire. However, the restaurant sustained significant water damage.

Three Sac Metro Fire engines and 17 fire fighters battled the blaze which caused an estimated $50,000 in damage to the building.

“It’s still under investigation. We know where it started, but how it started is still under investigation,” said Michelle Eidem of the Sacramento Metropolitan Fire Department. So when our crews got here there was light smoke inside but the fire was contained and they could quickly put the fire out.

No one was in the building when the fire started, But Mikuni owner Taro Arai says his employees, customers and profit will suffer.

For more:  http://sacramento.cbslocal.com/2012/12/29/fire-damages-popular-mikuni-restaurant-in-fair-oaks/

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Filed under Fire, Insurance, Maintenance, Management And Ownership

Hospitality Industry Legal Risks: California Restaurant Chain Sued By Handicapped Woman For ADA Violations; Claims "Severe And Pervasive Accessibility Barriers"

“…(accessibility) barriers include having to cross the drive-through lane to reach the restaurant’s main entrance from the accessible parking area, excessive slopes in the path of travel to that entrance and ordering Hospitality Industry ADA Lawsuitslines too narrow for wheelchair users. The suit also claims wheelchair-using customers can’t reach the drinks and condiments on the service counter or slide the chair under the tabletops to dine…”

A wheelchair-bound woman who has eaten at a Redwood City Taco Bell at least twice a month for several years is suing the company for not complying with handicap access standards, saying she has been left humiliated by having others place her order or only procuring food through the drive-through window.

Susan Seales was part of a decade-old class action lawsuit against Taco Bell in which a federal judge ultimately ordered the upgrade of more than 200 California restaurants. However, in July 2012, the court also decertified the class for damage claims and Seales is now seeking that relief though the San Mateo County Superior Court.

Seales has lumbar stenosis which leaves her unable to walk or stand, according to the lawsuit filed Dec. 27. Between roughly 2002 and now, Seales has visited the Taco Bell at 2693 El Camino Real several times and from 2002 to 2009 dined inside the restaurant twice a month. From 2009 on, though, she has only used the drive-through to buy food which she eats in the parking lot because of the “severe and pervasive” accessibility barriers, the suit states.

Seales’ daughter or another customer would have to place her order as a result, giving her “discomfort, embarrassment and distress.”

For more:  http://www.smdailyjournal.com/article_preview.php?id=1760625&title=Woman%20suing%20Taco%20Bell%20for%20ADA%20issues

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Filed under Guest Issues, Insurance, Liability, Management And Ownership

Hospitality Industry Theft Risks: Wisconsin Hotel Manager Charged With Stealing More Than $28,000; Purchased Prepaid Credit And Gift Cards From Company Accounts

A police audit of credit card purchases made by Huff on her company account revealed $19,603 in prepaid Visa and other gift card purchases made at a local grocery store during a six-month period. Investigators also employee theftdiscovered checks Huff wrote for personal use as well as additional credit card purchases for a cellphone, a computer, auto insurance and auto repairs.

A Schofield woman charged with stealing more than $28,000 from two hotels she managed will be sentenced Jan. 10 after reaching a plea deal with prosecutors. Gretchen Huff, 32, was charged in March with embezzlement after investigators discovered thousands of dollars in unauthorized charges to her employer’s credit card for personal purchases. Huff is the former general manager of two Ghidorzi Co. hotels, the Country Inns and Suites in Schofield and the Fairfield Inn and Suites in Weston.

Managers at Ghidorzi Cos. became suspicious of Huff in January after discovering a one-week van rental in August 2011 for $1,029. Police say Huff paid for the rental with a business credit card issued in her name. Huff admitted renting the van to go on vacation with her children in Nebraska and offered to pay back the money. Further investigation by Ghidorzi officials uncovered additional unauthorized charges, including $2,000 for a used car and stereo equipment Huff said she purchased for a boyfriend in Chicago.

For more:  http://www.stevenspointjournal.com/article/20121228/SPJ0101/312280278/Sentencing-set-woman-charged-hotel-thefts?odyssey=mod|newswell|text|FRONTPAGE|s

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Filed under Crime, Insurance, Labor Issues, Liability, Management And Ownership, Theft

Hospitality Industry Legal Risks: Family Of Man Who Died At "After-Hours Party" Files "Wrongful Death" Lawsuit Against Washington Restaurant; Victim Was "Over-Served" Alcohol, Did Not Receive Assistance

“…The injury occurred during an after-hours party hosted by the establishment’s general manager, who allegedly gave Lee liquor and marijuana…(the lawsuit alleges) that the restaurant broke the law by hosting an Alcohol Drink Responsiblyafter-hours party and put Patrick Lee in danger by over-serving him liquor, then failing to summon assistance when he was injured…”

The father of a man who died after allegedly falling and hitting his head during a party at a Puyallup restaurant has filed a wrongful-death lawsuit against the business. Attorneys for David Lee filed the lawsuit on his behalf this month in Pierce County Superior Court.

Lee is the father of Patrick Lee and the representative of the younger man’s estate. He seeks unspecified damages from Mis Tres Amigos, a family-owned Mexican restaurant with locations in Puyallup and Lakewood.

Patrick Lee, 22, died in November 2010 allegedly after becoming extremely intoxicated at the restaurant, the lawsuit states.

Instead of summoning help for Lee, the general manager and one of Lee’s friends “left him in a booth and continued to party,” the lawsuit alleges.

Lee was found the next morning unresponsive and having difficulty breathing. The general manager and Lee’s friend took him to Good Samaritan Hospital in Puyallup. He eventually was transferred to Harborview Medical Center in Seattle, where he was declared brain dead and removed from life support.

Read more here: http://www.thenewstribune.com/2012/12/25/2414300/man-sues-puyallup-eatery-says.html#storylink=cpy

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

Hospitality Industry Legal Risks: Oregon Restaurant Employee Awarded $70,000 In "Unlawful Employment Practices" Lawsuit; Woman Claimed Discrimination After Filing For Workers' Compensation

“…the (plaintiff) was placed in a position to work near heat, which caused a re-blistering of the wound, according to the lawsuit…(her) physician contacted the worker’s compensation carrier again to say she was to Hospitality Industry Lawsuitwork on modified duties without exposure to heat, the lawsuit states KFC continued to expose Vargas to heat in the workplace…”

“…her physician instructed her not to return to work because KFC was not able to follow the modified duty requirement. Vargas then told her employer she could not return to work until her burn healed…two days later, KFC terminated her employment, stating that Vargas had resigned…”

A Salem woman was awarded more than $70,000 after a lawsuit she filed against Chick Inc., the Salem company that owns three KFC franchises, for unlawful employment practices. Jurors unanimously found in favor of plaintiff Sarai Vargas, who claimed she was wrongfully discharged and that she experienced discrimination after filing for workers compensation because of a workplace burn. A four-day trial ended Dec. 14.

While wearing protective gloves, Vargas suffered second-degree burns after grease splattered on her right arm as she pulled chicken from the grill oven May 9, 2010, Vargas’ lawyer Larry Linder said.

Vargas was treated by a doctor for the burn and was cleared to return to work on a modified duty, which included light activity with no exposure to heat, Linder said.

For more:  http://www.statesmanjournal.com/article/20121225/NEWS/312250021/Woman-who-took-KFC-court-wins-70-000

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