Category Archives: Insurance

Hospitality Industry Legal Risks: Georgia Restaurant Group Settles Alcohol-Related "Wrongful Death Lawsuit" For $1.1 Million; "Post-Shift Drinking By Employees Is Rampant In Restaurant Industry"

 “It is rampant in the restaurant industry…it is a
culture of post-shift drinking, and in some restaurants, drinking during the
shift. It’s almost like a fringe benefit in some high-end restaurants, this
tradition of drinking after work.”

Husk’s owner, Marietta, Ga.-based Neighborhood Dining Group Inc., and its insurer agreed last month to settle the suit for $1.1 million. The company denied fault or liability.

The fiery crash and lawsuit also have put restaurants across the USA on notice that a tradition at many restaurants — in which employees share a drink after work in a spirit of camaraderie — can have devastating consequences.

The 4 a.m. crash occurred last December, when Adam Burnell, 32, an assistant manager and sommelier at Charleston’s Husk restaurant, allegedly drove his Audi into the back of a Mustang driven by Quentin Miller, 32. The crash slammed Miller’s car into a concrete wall; it erupted in flames, trapping him inside. He died at the scene. Burnell, who prosecutors said had a blood-alcohol level of 0.24%, three times the legal limit, was charged with felony driving under the influence.

Miller’s family filed a wrongful-death lawsuit, alleging that Husk allowed Burnell to drink to excess on its premises after hours and then drive drunk. It was a stumble for a restaurant that was named “Best New Restaurant in America” by Bon Appetit magazine months earlier. Husk also was ranked one of the “101 Best Places to Eat in the World” by Newsweek magazine last month.

Burnell, who sustained minor injuries and is awaiting trial, was not named as a defendant.

Neighborhood Dining Group already had a policy that prohibits employees of its four restaurants — three in Charleston and one in Atlanta — from drinking on the premises, President David Howard says.

For more:  http://www.usatoday.com/news/nation/story/2012-09-04/restaurants-drinking-lawsuit-crash-south-carolina/57586486/1

Comments Off on Hospitality Industry Legal Risks: Georgia Restaurant Group Settles Alcohol-Related "Wrongful Death Lawsuit" For $1.1 Million; "Post-Shift Drinking By Employees Is Rampant In Restaurant Industry"

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

Hospitality Industry Property Risks: Hawaii Hotel And Resort Fire Starts On Second Floor Of Older Building With "Shake Roof" That Burns Quickly And Collapses; $1.4 Million In Damages

“….the structure was old, making it more difficult to fully extinguish the fire…the roof material is wooden shake which made it burn faster…the fire caused about $1.4 million in damage…”

Maui firefighters spent their labor day battling a blaze at the Valley Isle Resort in Kahana. The fire was called in just after 6 a.m. Monday. Maui firefighters say it started on the second floor of a two-story building. Thick smoke and flames poured out from the roof which partially collapsed as more than 60 firefighters battled the flames.

Mainaga says a defensive tactic was necessary because the whole roof could come down, so firefighters had to stay outside. Firefighters evacuated the building as well as the Valley Isle Resort, a hotel and condominium building right next door.

The two-story building is part of the resort and has offices as well as a fitness center. “Yes that explains why the thing burned so fast.” said Mainaga.

Mainaga says no one was in the unit where the fire started and everyone was evacuated in time, so nobody was hurt.

For more:  http://www.khon2.com/news/local/story/UPDATE-Fire-at-Maui-resort-causes-1-4-million-in/dMVY1kLSOkC_q-z_iHg4Kw.cspx

Comments Off on Hospitality Industry Property Risks: Hawaii Hotel And Resort Fire Starts On Second Floor Of Older Building With "Shake Roof" That Burns Quickly And Collapses; $1.4 Million In Damages

Filed under Claims, Fire, Insurance, Maintenance

Hospitality Industry Property Risks: California Hotel And Restaurant Fire Caused By Electrical Malfunction; Over $400,000 In Roof And Water Damage

“…The blaze damaged the inn’s roof and attic, and there was water damage to the upper floors…damage is estimated at between $400,000 and $500,000…”

An electrical malfunction in a bathroom might have caused a fire at the Calistoga Inn Tuesday morning, a Calistoga firefighter said. The fire was reported at 3:13 a.m. at the inn, restaurant and brewery located at 1250 Lincoln Ave.

Guests were evacuated as crews began to battle the flames.  Twelve of the hotel’s 18 rooms were occupied, mostly by couples, Tamagni said. No injuries were reported.

For more: http://sanfrancisco.cbslocal.com/2012/08/28/electrical-fire-causes-half-a-million-in-damage-to-calistoga-inn/

Comments Off on Hospitality Industry Property Risks: California Hotel And Restaurant Fire Caused By Electrical Malfunction; Over $400,000 In Roof And Water Damage

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

Hospitality Industry Property Risks: Washington Restaurant Fire Caused By "Combustible Items Near Water Heater"; Over $1,000,000 In Damage

 “…the fire was most likely caused by combustible items being stored too close to the water heater…resulting in over $1,000,000 in damage…”

Investigators believe a fire at a Lynnwood restaurant this week started near a water heater, officials said Friday.
The fire broke out about 2 p.m. Wednesday at The Local Yolk at 4025 196th Street SW.

Diners and staffers got out safely, but the fire caused up to $1 million in damage, according to the Lynnwood Fire Department.

Investigators were unable to pinpoint what exactly started the fire. Most likely, it was caused by combustible items being stored too close to the water heater.

For more:  http://heraldnet.com/article/20120831/NEWS01/708319851/-1/NEWS01

Comments Off on Hospitality Industry Property Risks: Washington Restaurant Fire Caused By "Combustible Items Near Water Heater"; Over $1,000,000 In Damage

Filed under Claims, Fire, Insurance, Maintenance, Management And Ownership

Hospitality Industry Legal Risks: Hotel And Restaurant Owners Should Maintain "Employment Practices Liability Insurance" And Institute Complaint Procedures To Reduce Employee Lawsuits

 “…these suits catch employers by surprise since, even if they terminate an employee for a business reason, every separated employee can claim discrimination on the basis of a protected class such as race, gender or sexual orientation…”

Employers who can afford it purchase Employment Practices Liability Insurance (EPLI) to protect their businesses.

In the last three to four years, HR lawsuits have been on the rise, and unfortunately, there does not seem to be any end in sight. The U.S. Department of Labor reports the number of lawsuits related to the Fair Labor Standards Act, alone, increased 35 percent in three years. And this is only one small area that an employer can be sued. The following steps can be taken to minimize lawsuits:

  • Your employee handbook must contain broad and multi-tiered complaint procedures so employees have sufficient recourse when they feel victimized by harassing or discriminating behavior.
  • Provide annual employment law training to all of your supervisors and require them to sign acknowledgments.
  • Educate your employees at the time of hire – during orientation, for instance – about the avenues open to them should they have a problem and need to complain.
  • Most critically, take prompt remedial action when someone complains. In other words, do something about it within 48 hours or less of receiving the complaint. It is best to seek legal advice when such a complaint occurs.

For more:  http://www.floridatrend.com/article/14575/more-employees-are-suing-employers

Comments Off on Hospitality Industry Legal Risks: Hotel And Restaurant Owners Should Maintain "Employment Practices Liability Insurance" And Institute Complaint Procedures To Reduce Employee Lawsuits

Filed under Claims, Insurance, Labor Issues, Liability, Maintenance, Risk Management

Hospitality Industry Safety Risks: Hotel And Resort Pool Drain Covers Must Comply With Federal Laws (Video)

[youtube=http://www.youtube.com/watch?v=klr2sMg51gI&feature=related]

Comments Off on Hospitality Industry Safety Risks: Hotel And Resort Pool Drain Covers Must Comply With Federal Laws (Video)

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

Hospitality Industry Property Risks: Missouri Hotel Roof Fire Results In "Severe Smoke Damage"; Costs Estimated At $20,000

“…(there was a) significant amount of smoke throughout the building…and damage in the lobby…estimated preliminary damage costs to be $20,000, according to the news release…”

A roof fire caused severe smoke damage at the Quality Inn in north Columbia on Tuesday afternoon. Kasey Ryan, a general manager and director of sales at the Quality Inn, said she thought the fire started between noon and 1 p.m.

“We noticed smoke in the lobby,” Ryan said. Guests lingering after a lunch meeting in the motel were asked to evacuate. Columbia Fire Department personnel arrived at the scene shortly after. Firefighters requested a second alarm roughly 20 minutes after their initial arrival, according to a news release. A dozen firefighters, five fire trucks, one ambulance and four police vehicles were present about 2:30 p.m.

Everyone safely evacuated and no injuries were reported.  “We’re just going to go through the process of cleaning up,” Ryan said. Ryan said she hopes the motel will be open in 24 hours, but a reopening date has not been set.

For more:  http://www.columbiamissourian.com/stories/2012/08/21/fire-department-responds-fire-quality-inn/

2 Comments

Filed under Claims, Fire, Insurance, Maintenance, Management And Ownership

Hospitality Industry Property Risks: "Tornado-Damaged" Missouri Hotel Reopens After Spending Millions Of Dollars Repairing Windows And Structure

The tornado caused millions of dollars in damage, but no one was seriously injured…even the landscaping was dug up because of fallen glass.

The Hilton Hotel at Branson Landing will officially reopen September 15, more than six months after it was damaged by the Leap Day tornado. Since the February 29 EF-2 twister, 3,400 energy-efficient replacement windows have been installed at the hotel.

Nearly every piece of furniture and nearly all the carpet in the 12-story hotel will be new. The outside of the hotel will have a new look, too.

The Hiltons of Branson say new thermostats in all the guest rooms have a motion-detector system, allowing the room temperature to return to a pre-set level when the room is not occupied.

The temporary closure cost some team members their jobs. There are plans to rehire staff once the hotel reopens this fall. The Branson Convention Center, which sustained less damage than the adjacent hotel, reopened in the late spring.

For more: http://ozarksfirst.com/fulltext?nxd_id=691972

Comments Off on Hospitality Industry Property Risks: "Tornado-Damaged" Missouri Hotel Reopens After Spending Millions Of Dollars Repairing Windows And Structure

Filed under Claims, Insurance, Maintenance, Management And Ownership

Hospitality Industry Legal Risks: Wisconsin Restaurant Owners Sued For $550,000 For "Negligence" In Alcohol-Related Shooting Death Of Patron

“… the defendants (are accused) of violating the Illinois Wrongful Death Act… were negligent for failing to take reasonable actions to protect customers, allowing a patron with weapons to be on the premises and allowing people inside the restaurant who were “quarrelsome, disorderly, hostile and vicious.”

The family says they have lost their means of support while also suffering a loss of society, consortium, guidance and companionship. The Ortizes ask to be awarded more than $550,000 in damages plus courts costs.

A Pontoon Beach restaurant is accused of causing the death of a Granite City man who was shot and killed there last year. Brenda Ortiz, as special administrator of the estate of Jesus Ortiz-Flores, and Luis F. Ortiz filed a lawsuit Aug. 15 in Madison County Circuit Court against La Mexicana Inc., also known as La Mexicana Restaurant Inc., Orlando Gudino, Berzain Gudino and Oscar Guidno. Choteau Properties Inc. is also listed as a defendant.

The 37-page lawsuit stems from a shooting that happened at La Mexicana on Chouteau Trace Parkway in Pontoon Beach on August 19, 2011, the suit states. According to statements made by police to media immediately following the incident, Jesus Ortiz-Flores, 20, was shot once in the head in the parking lot of the La Mexicaca restaurant and died immediately. Plaintiff Luis Ortiz, who was 18 at the time, was allegedly shot multiple times during the incident but survived.

Brenda Ortiz and Luis Ortiz accuse La Mexicana restauraunt, the owners and managers and Choteau Properties, the owner of the building, of directly contributing to the shootings. The Ortizes contend the restaurant served alcohol to the alleged shooter, Fernando Gallegos, 17, allowing him to become intoxicated and then attack Ortiz-Flores, causing his death. They say the defendants’ actions constitute a violation of the Illinois Dram Shop Act.

For more:  http://www.madisonrecord.com/news/246266-la-mexicana-restaurant-in-pontoon-beach-sued-over-shooting-death

Comments Off on Hospitality Industry Legal Risks: Wisconsin Restaurant Owners Sued For $550,000 For "Negligence" In Alcohol-Related Shooting Death Of Patron

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

Hospitality Industry Health Risks: Chicago Hotel Is Confirmed As Source For Three Cases Of Legionnaires' Disease

The city and the hotel are notifying the 8,500 guests who stayed there from July 16 through Aug. 15. Authorities say they’ve identified the source of the bacteria and there’s no ongoing health risk.

Health officials say they are investigating three confirmed cases of Legionnaires’ (LEE’-juh-nares) disease among people who stayed at a Chicago hotel. The Chicago Department of Public Health and the JW Marriott Chicago Hotel issued an advisory Tuesday. They say guests with symptoms who stayed at the Adams Street hotel should contact their doctors.

Symptoms include headache, high fever, chills, cough, chest pain and shortness of breath.

The bacteria that cause Legionnaires’ disease grow in water and can spread through vapor in air-conditioning ducts or mist from a whirlpool spa.

Read more here: http://www.sacbee.com/2012/08/21/4745192/legionnaires-disease-linked-to.html#storylink=cpy

Comments Off on Hospitality Industry Health Risks: Chicago Hotel Is Confirmed As Source For Three Cases Of Legionnaires' Disease

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