Category Archives: Insurance

by | December 23, 2012 · 8:00 am

Hospitality Industry Legal Risks: Connecticut Hotel Guilty In "Wrongful Death" Lawsuit Filed By Family Of Man Killed By Hotel Van; Jury Awards $2.3 Million For Driver's Negligence

The jurors ruled both Coleman and Campos were at fault in the accident. But the jurors said Coleman, and thus LaQuinta as well, were responsible for 58 percent of the negligence and Campos was responsible for 42 Hospitality Industry Lawsuitpercent…the (victim) was found to share some of the negligence probably because “no one can say for sure” if he obeyed a stop sign…the (driver) did not have a stop sign…”

“…The lawsuit also alleged (driver) was using a cellphone in violation of state law…the jurors awarded $1,709,840 in damages to the victim’s estate and $580,000 in damages to the widow…”

The family of Jose Mauricio Campos Thursday won a jury verdict of nearly $2.3 million in a wrongful death lawsuit against a hotel corporation and its employee, the driver of a van that struck Campos. Campos, 52, was riding a bicycle at about 6:45 p.m. Sept. 15, 2008 when he was hit by the van, operated by Robert Edward Coleman, near the intersection of Westfield and Gilbert streets in West Haven.

Coleman was a defendant in the civil suit, along with his employer, LaQuinta Inn and Suites, owned by LQ Management. He and the corporation were found to be equally liable.

Campos, who was not wearing a helmet, was thrown to the pavement by the impact and suffered a serious head injury. He died three days later at Yale-New Haven Hospital after emergency surgery. The plaintiff was his wife, Gregoria Campos of West Haven. The Camposes had three sons, now adults.

For more:  http://nhregister.com/articles/2012/12/22/news/new_haven/doc50d67c73417dd288959464.txt

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by | December 22, 2012 · 7:21 am

Hospitality Industry Safety Risks: Gas Fireplace Manufacturers To Provide "Protective Screens" To Prevent Severe Burns From "Scorching Glass Fronts"

“…Under the voluntary standard, the glass is allowed to reach temperatures as high as 500 degrees or 1,328 degrees Fahrenheit, depending on the type of glass used. Up to now, most manufacturers have not provided Hotel Glass Fireplacesscreens or prominent safety warnings out of fear of marring the aesthetic appeal of fireplaces or scaring off customers…”

Some have argued that the risks of a fireplace are so obvious that keeping kids safe is simply a matter of good parenting and common sense. However, some child burn victims were hotel guests whose parents had no experience with gas fireplaces.

Fred Stephens’ 11-month-old daughter Lila had to have skin grafts on both palms after suffering third-degree burns from fireplace glass at a resort in the Wisconsin Dells in 2010.

To stave off regulation and lawsuits over severe burns to toddlers, manufacturers will provide protective screens as standard equipment with new gas fireplaces. The industry has revised its voluntary guidelines to call for the addition of mesh screens attached to new fireplaces to prevent contact with the scorching glass fronts.

Fireplace makers will have a long lead time — until Jan. 1, 2015 — to provide screens with new units, though companies are already retooling to do it sooner, said Tom Stroud, a senior manager with the Hearth, Patio and Barbecue Association.

As reported by FairWarning, more than 2,000 children age 5 and under were injured by contact with the unprotected glass in a recent 10-year period, according to a federal database. The injuries triggered at least a dozen lawsuits and scrutiny by the Consumer Product Safety Commission.

For more:  http://www.oregonlive.com/health/index.ssf/2012/12/new_gas_fireplaces_to_get_safe.html

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by | December 21, 2012 · 6:56 am

Hospitality Industry Safety Risks: New Jersey Hotel "Not Responsible" For Near-Drowning Of Guest; Jury Finds Pool Area "Complied With State Law"

“…the attorney for the hotel owner, said the pool area complied with state law and asked the jury to consider pool safety No Lifeguard Signthe responsibility borne by Robert Smith and his daughter when they entered the pool…”

A jury in Hackensack on Thursday determined that a hotel owner was not responsible for a near-drowning that left a Georgia man brain-injured after he tried to rescue his daughter from the hotel’s swimming pool.

The family of Robert A. Smith sued Ratan R. Park, LLC., owner of the Ramada Inn in Rochelle Park, for damages after Smith was overcome by water on July 4, 2009, when he tried to rescue his 11-year-old daughter, Brianna, after she drifted into the pool’s deep end.

Smith remains in a nursing home with permanent brain injuries that an attorney for Smith’s family said were the direct result of negligence by the hotel’s owner.

In the trial before Superior Court Judge Charles Powers, Attorney Greg Haddad had argued that the pool’s depth markings were inaccurate, its bottom was steeper than it should have been and the hotel owner failed to provide a “life line” separating the pool’s deep and shallow ends, presenting a “perfect storm” for guests who couldn’t swim.

Neither Smith nor his daughter could swim, and O’Hara in closing arguments on Wednesday in state Superior Court told the jury in the civil case that “both had a duty to exercise reasonable care; they had an obligation to make reasonable observations.”

For more:  http://www.northjersey.com/news/Jury_absolves_Rochelle_Park_hotel_of_responsibility_in_near-drowning_in_pool.html

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by | December 20, 2012 · 9:57 am

Hospitality Industry Property Risks: Minnesota Restaurant Kitchen Fire Results In Extensive Equipment, Inventory And Water Damage

An insurance adjuster was on the site to assess the damage…based on how the bids come in to repair damage and replace equipment and inventory, the determination would be made about fixing and opening again.

Restaurant Fire“…the Red-wood Falls Fire Department called Thursday night to put out the fire and then called back Friday and Saturday to address persistent smoldering… the sprinklers went off water damage also became an issue…three inches of water that had to be removed…”

At 6:30 p.m. this past Thursday, a Christmas party was being held at The Rusty Bucket. About that time Oman noticed something that would dramatically change what she would be doing for the next few months. “I noticed there were flames coming out from behind the broiler,” she said.

After attempts were made to put the fire out with a fire extinguisher, it was determined the fire was not going down.
So, everyone in the facility was sent out of the building, and Oman called 911. Just four days later Oman stood looking at the damage that fire caused to the entire restaurant and bar.

For more:  http://www.redwoodfallsgazette.com/article/20121219/NEWS/121219465/1001/NEWS

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by | December 19, 2012 · 8:48 am

Hospitality Industry Property Risks: West Virginia Restaurant Fire Caused By "Malfunction Of Freezer Compressor Unit"; Court Rules Owners May Not Seek Damages To Rebuild Business

After an investigation, the cause of the fire was found to have been a malfunction of the compressor unit and/or power cord…the plaintiffs claim the freezer was not safe for its intended use and also made claims of Restaurant Firedefective design, breach of implied warranty and negligence.

Porker’s made claims for destroyed property and lost business during restoration, but Goodwin’s Dec. 7 ruling concerned three types of other damages requested. They were the cost to build a new Porker’s, lost franchise and royalties fees and the cost of preparing the franchise agreement…Goodwin wrote Porker’s was harmed by the fire but not destroyed, and the insurance payouts were designed to get business resumed. The company requested $105,935 to rebuild in its lawsuit.

After being told it could not seek damages to rebuild itself, Porker’s Bar-B-Q settled its lawsuit against General Electric and Wal-Mart on the eve of trial. The lawsuit claimed they were responsible for property damages from a fire caused by a freezer GE made and Wal-Mart sold. It was filed in 2011 by Jack Bruer and Pam Napier, the owners of Jack and Pam’s who operated Porker’s, and the settlement was entered 10 days after U.S. District Judge Joseph Goodwin granted the defendants’ motion for summary judgment.

The plaintiffs claimed a General Electric freezer bought three years earlier at a Sam’s Club store caught fire and destroyed the business premises of Porker’s, located in Cross Lanes, on Aug. 19, 2009.

Despite insurance company payouts, Porker’s has been out of operation since the fire. During its years of operation, Porker’s never turned a profit, Goodwin wrote.

“The defendants rightfully point out that the plaintiffs stated in their deposition testimony that Porker’s restaurant closed not because of the fire but because the landlord refused to renew their lease,” Goodwin wrote.

Bruer planned to go back to business after repairs were completed, but they never got the chance. The plaintiffs claim the fire was still the proximate cause of the restaurant because it led to the breakdown in the relationship between them and the landlord.

Goodwin found that a reasonable jury could not agree with that argument.

For more:  http://wvrecord.com/news/256425-bbq-restaurant-settles-case-over-fire

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by | December 18, 2012 · 7:40 am

Hospitality Industry Insurance Risks: Workers' Comp Insurance Fraud Costs Businesses $7.2 Billion Annually

In 2007 State Fund discovered Safehome Inc. was under reporting their employee payroll to avoid paying the proper premium. An audit was completed and indicated that Safehome Inc. had failed to pay the proper workers compensation insurancepremiums for their workers’ compensation policy in the amount of $477,285. Additionally, State Fund determined the business was operating out of its classification, and related payroll was never reported to either State Fund or EDD, according to investigators.

“…the three types of most common workers’ comp fraud – injured worker fraud, provider fraud and premium fraud – haven’t changed much…”

Workers’ compensation fraud costs businesses $7.2 billion annually, roughly a fifth of all workers’ compensation payments, according to the National Insurance Crime Bureau.

In the past, it’s been challenging to prosecute workers’ compensation fraud, but recently passed legislation is making it easier for agencies like State Fund to work together to fight fraud. In June, as a result of a joint task force that included State Fund, more than 100 enforcement actions were taken against companies for failure to comply with state contracting, insurance and payroll requirements.

And earlier this year, State Fund partnered with other agencies on a fraud case that resulted in a conviction with restitution orders to both State Fund and the Employment Development Department.

For more:  http://www.insurancejournal.com/news/west/2012/12/12/273777.htm

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by | December 16, 2012 · 9:14 am

Hospitality Industry Insurance Risks: Pending Legislation Before Congress Deals With Medicare Payments, Workers' Compensation And Liability Insurance Claims

“…the Medicare Secondary Payer and Workers’ Compensation Settlement Agreements Act of 2012…deals only with workers’ compensation claims, and seeks to establish clear and consistent rules for workers’ workers comp medicalcompensation set-asides for claimants covered by Medicare…”

“…The Strengthening Medicare and Repaying Taxpayers Act…deals with issues related to the Medicare Secondary Payment Act. Specifically, it deals with mandates for providing timely information on conditional payments, penalties and statutes of limitations when claims are reported to the Centers for Medicare and Medicaid Services by insurers and self-insured and third-party payers on no-fault auto-insurance claims, workers’ compensation claims, and claims under liability insurance…”

Insurance and related industries are seeking to win support in the waning days of the current Congress for two pieces of legislation dealing with payment of injured worker claims to people whose primary insurance is Medicare. Officials of both the American Insurance Association and the Property Casualty Insurers Association of America are urging action on the bills this year.

Nathaniel Wienecke, PCI senior vice president, Wednesday asked officials of the Senate Finance Committee and the House Ways and Means Committee if it could act on the bill this year.

Currently, workers’ compensation claims that overlap with Medicare coverage are subject to lengthy, cumbersome review by the Centers for Medicare and Medicaid Services to establish the proper “set-side” coverage amounts for future medical expenses, according to PCI officials.

For more:  http://www.propertycasualty360.com/2012/12/14/insurance-reps-push-for-action-on-medicare-seconda?t=commercial

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by | December 11, 2012 · 6:50 am

Hospitality Industry Legal Risks: New Jersey Hotel Sued For "Negligence" By Man Who Suffered Brain Damage In Pool Incident; "Staff Wasn't Prepared To Handle Drowning Emergency"

“…the plaintiff’s attorney, said his clients’ case also is based on a claim that the hotel’s staff wasn’t prepared to handle a drowning emergency. Hotels aren’t required to employ lifeguards but they must designate someone Pool safety No Lifeguard Signas a “certified pool operator.” In this case, the pool operator, an assistant manager, was present when plaintiff went under…but because plaintiff was unresponsive on the pool bottom by the time the pool operator pulled Brianna out of the water, and because the pool operator himself couldn’t swim, he was unable to rescue Smith before he suffered brain damage…”

A Georgia man who suffered permanent brain damage while trying to save his daughter in a hotel swimming pool was the victim of negligent owners who failed to ensure the pool area was safe, a lawyer for the plaintiff said Monday during opening arguments in the civil trial.

Robert A. Smith, 40, was overcome by water on July 4, 2009, when he tried to save his 11-year-old daughter, Brianna, after she drifted into the deep end of the Ramada Inn poll in Rochelle Park. Safeguards that should have been in place – such as visual cues indicating the water’s depth and a “life line” separating the shallow and deep ends – were missing. In combination with a pool bottom that was steeper than it should have been, the result was a “perfect storm” for hotel guests who couldn’t swim, said Greg Haddad, an attorney for Smith’s family.

“This facility, its pool, were operated in a negligent manner,” Haddad told a jury in state Superior Court in Hackensack on Monday. “The focus of this company and these people was to make money at the complete disregard for [the safety of] customers.”

The family of Robert Smith, who remains in a “minimally-conscious state” in a nursing home, is suing the owner of the Ramada Inn, Ratan R. Park, LLC., for damages, said Haddad.

In a recording of the 911 call reporting the drowning, the caller tells the emergency operator, “Somebody’s drowning inside the water. … Nobody can swim here.” Eventually, another hotel guest dove in the water to save Smith.

Smith’s condition is stable, Haddad said, and his doctors believe he could live for another 20 or 25 years. His family is asking for at least enough money to cover his medical expenses, which will amount to $7 million over his lifetime if he is cared for at home, and $12 million if he remains in a nursing home, Haddad said.

For more:  http://www.northjersey.com/news/Lawyers_debate_Rochelle_Park_hotels_liability_in_swimming_pool_case.html

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by | December 10, 2012 · 7:05 am

Hospitality Industry Property Risks: California Restaurant Fire Caused By "Improperly Stored Oily Rags" Catching Fire; 10 Propane Tanks Explode

“…Oily rags ignited a Sunday morning fire that caused several propane tanks to explode at the Gingham restaurant owned by a celebrity chef…the rags were balled up and tossed in a bin when they should have been Restaurant Firelaid out to dry and stored in a properly approved container…”

Most of the estimated $50,000 in damage occurred in the exterior courtyard between Gingham and the shop next door, McCrea Music Company. The businesses reside between La Mesa Boulevard and Allison Avenue.

Initial reports at 5:48 a.m. were of a rubbish fire behind the restaurant. When fire crews arrived three minutes later, the flames were 10 feet high and firefighters witnessed multiple explosions of propane tanks. In all, as many as 10 of the 35 tanks stored behind the restaurant exploded.

Battalion Chief Bent Koch said it appeared that the cleaning rags from the restaurant, which were stored in a container outside, had spontaneously combusted.

For more: http://www.nctimes.com/fire-at-la-mesa-s-gingham-restaurant/article_a596c7f7-4b96-5250-8d65-5e8532cf6144.html

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by | December 9, 2012 · 7:29 am

Hospitality Industry Health Risks: Iowa Restaurant Linked To Meat Contaminated By E. Coli That Nearly Killed Woman; Beef Processing Plant Used Mechanical Tenderizer

“…Although blading and injecting marinades into meat add value for the beef industry, that also can drive pathogens — including the E. coli O157:H7 that destroyed Lamkin’s colon — deeper into the meat…if it isn’t Risks of E. coli contamination in restaurant beefcooked sufficiently, people can get sick. Or die.

Big Beef and other processors are co-mingling ground beef from many different cattle, some from outside the United States, adding to the difficulty for health officials to track contaminated products to their source. The industry has resisted labeling some products, including mechanically tenderized meat, to warn consumers and restaurants to cook it thoroughly.

Three years ago, at age 87, Lamkin was forced to begin wearing a colostomy bag for the rest of her life after a virulent meat-borne pathogen destroyed her large colon and nearly killed her. What made her so sick? A medium-rare steak she ate nine days earlier at an Applebee’s restaurant.

Lamkin, like most consumers today, didn’t know she had ordered a steak that had been run through a mechanical tenderizer. In a lawsuit, Lamkin said her steak came from National Steak Processors Inc., which claimed it got the contaminated meat from a U.S. plant run by Brazilian-based JBS — the biggest beef packer in the world.

“You trust people, trust that nothing is going to happen,” said Lamkin, who feels lucky to be alive at 90, but beef companies “are mass-producing this and shoveling it into us.”

The Kansas City Star investigated what the industry calls “bladed” or “needled” beef, and found the process exposes Americans to a higher risk of E. coli poisoning than cuts of meat that have not been tenderized. The process has been around for decades, but while exact figures are difficult to come by, USDA surveys show that more than 90 percent of beef producers are now using it.

Mechanically tenderized meat is increasingly found in grocery stores, and a vast amount is sold to family-style restaurants, hotels and group homes. The American Meat Institute, an industry lobbying group, has defended the product as safe but recently said it can’t comment further until it sees results of an assessment by the meat safety division of the U.S. Department of Agriculture.

Read more here: http://www.star-telegram.com/2012/12/08/4469815/mechanical-tenderizers-linked.html#storylink=cpy

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