Category Archives: Insurance

by | May 7, 2012 · 6:49 am

Hospitality Industry Property Risks: California Extended Stay Hotel Fire Forces Guests To "Flee For Their Lives"; Source Determined To Be Hot Plate Left On In Vacant Room

“…investigators have deemed the fire “accidental” in nature. The room where the fire began was vacant. The previous tenant left a hot plate on…”

Fire ripped through an extended stay hotel in La Habra Sunday afternoon forcing guests to flee for their lives. And the frightening fire was caught on cell phone video.

Edward Lawrence, reporting for CBS2 and KCAL9, said three people had to be rescued from the third floor by Los Angeles County Firefighters. The three people were reportedly overcome by smoke and had to be treated for smoke inhalation.

A total of 50 people have been displaced. After putting out the stubbon blaze, firefighters spent hours looking for potential hotspots.

Window rescues were necessary because the hotel guests made the mistake of opening their front doors. “You can see they left their doors open. And the rooms have a moderate amount of smoke damage. Smoke was rolling over their heads and they were waving white flags and white pieces of clothing.”

For more:  http://losangeles.cbslocal.com/2012/05/06/caught-on-tape-extended-stay-hotel-fire-has-guests-fleeing-for-their-lives/

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by | May 6, 2012 · 7:23 am

Hospitality Industry Property Risks: Minnesota Restaurant Fire And Water Damage Results In $1 Million Reconstruction; "Discarded Cigarette" On Wood Deck Determined As Cause

“…a cigarette discarded in a flower pot on the deck sparked the fire that, coupled with the water used to extinguish it, caused more than $1 million in damage and closed the restaurant for more than six months…”

Even though the fire was mostly confined to the deck and part of the bar, the damage turned out to be much more severe than originally thought. It was February before the contractor could start reconstruction by gutting the remaining structure.

But Casper’s Cherokee of Eagan, the familiar barn-shaped restaurant and bar on Nicols Road, is on its way back. The restaurant opens Monday, completely refurnished and with some tweaks to the menu. Among them: A Blazin’ Barn Burger — proof that owner Rick Casper has a sense of humor — and Eagan’s Firehouse No. 5 Burger — named in honor of the department that responded to the blaze Oct. 9.

As the staff prepared for reopening last week, there were still lots of details to pin down. Chairs had not yet been delivered. A cement patio soon will be added where the deck once stood.

There was a flurry of staff training, initiating 50 new crew members and refreshing the roughly 20 people who waited for Casper’s to reopen, even though there wasn’t money to pay them past December.

For more:  http://www.startribune.com/local/south/149897095.html

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by | May 5, 2012 · 7:43 am

Hospitality Industry Legal Risks: Dept. Of Justice Considering Delaying ADA "Pool Lift" Compliance Deadline From May 15 To September 2012

The DOJ could charge $55,000 for the first violation and $110,000 for any subsequent violation. The Justice Department has said it will investigate any complaints of non-compliance but will give pools with financial hardship and a savings plan more time to comply.

ADA regulations instruct hotels to buy one fixed lift for each large pool, hot tub and sauna. The 235,000 to 310,000 hotels needing to upgrade may face total costs of $1 billion, according to the Association of Pool and Spa Professionals.

As a result of widespread misunderstanding about the rule and complaints from hotel owners, the Department of Justice has extended the original March 15 deadline for compliance to May 15, and is considering delaying it until September.

The department is reviewing comments submitted in March and April. A spokesman said the department is considering only extending the deadline — not stripping the requirement altogether.

“If a fixed lift is affordable and easy for that hotel, they need to provide a fixed lift,” DOJ spokesman Mitchell Rivard wrote in an email. “If only a portable lift is affordable and easy for that hotel, they can use a portable lift. If they already have a portable lift, they should explore whether it is affordable and easy to attach the lift. If no lift is achievable, they should make a plan to achieve access when it becomes readily achievable for them.”

For more:  http://www.chillicothegazette.com/article/20120505/NEWS01/205050303

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by | May 2, 2012 · 6:53 am

Hospitality Industry Property Risks: Georgia Restaurant Fire Destroys Building; Cause Determined To Be "Careless Smoking"

 “The fire marshal’s office determined the cause of the fire was careless smoking, an improperly discarded cigarette,”

Fire destroyed the Long John Silver’s restaurant at 1281 Thompson Bridge Road Saturday afternoon. “The building is a total loss,” Gainesville Fire Chief Jon Canada said.

When firefighters arrived, Canada said smoke was showing from the entrance side of the restaurant as well as the eaves and roof. Flames broke through the roof, which began collapsing inward, he said.

Firefighters set up a defensive attack with two ladder trucks, Canada said. He said crews were able to knock down the fire just before 4 p.m.

For more:  http://www.gainesvilletimes.com/section/6/article/66809/

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by | May 1, 2012 · 7:54 am

Hospitality Industry Health Risks: $6 Million "Negligence Lawsuit" Filed Against Maryland Hotel After "Legionnaires' Disease" Outbreak Confirmed In Water System

“…The lawsuit seeks damages of $6 million dollars, $5 million for negligence and $1 million for loss of consortium…”

“…The Virginia resident who filed the claim reportedly spent 6 weeks in the hospital suffering a number of severe medical conditions and that cost hundreds of thousands of dollars in medical bills…”

The Maryland Department of Health and Mental Hygiene announced the illnesses in October 2011, which occurred after the individuals stayed at an Ocean City hotel. The hotel was later closed for several days to perform tests on the water systems to try and locate the bacteria that cause the disease.  Earlier this month, it was reported that one of those who contracted Legionnaires’ disease while staying at the hotel has filed a lawsuit against the hotel. 

[youtube=http://www.youtube.com/watch?v=HB7g81JxCq0]

  • Each year, between 8,000 and 18,000 people are hospitalized with Legionnaires’ disease in the U.S.
  • It is believed that many infections are not diagnosed or reported, so this number may be significantly higher.
  • More cases are usually found in the summer and early fall, but it can occur any time of year.
  • “Legionnaires’ disease is caused by Legionella bacteria,”
  • “Legionella bacteria can sometimes be found in manmade environments that contain warm water. 
  • These may include hot tubs, cooling towers, hot water tanks, large plumbing systems, or parts of the air-conditioning systems in large buildings. 
  • Proactive testing for Legionella can help prevent outbreaks of the disease. 
  • If an outbreak has occurred, testing for the bacteria can pinpoint sources of the potentially deadly pathogen to prevent further illnesses,”

For more:  http://www.environmental-expert.com/news/victim-of-legionnaires-disease-files-lawsuit-against-maryland-hotel-292018

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by | April 30, 2012 · 6:51 am

Hospitality Industry Flood Risks: Tennessee Hotel Owners Sue Federal Government For "Negligence" In Managing Spillway Resulting In "100-Year Flood" Levels Two Years Ago

Gaylord wants $250 million for damages to its Gaylord Opryland Hotel and the Grand Ole Opry House

 “…the Corps opened the spillway at Old Hickory Dam…the discharges were so high they caused the Cumberland River to rise above the 100-year flood plain and cause all this damage…”

Gaylord Entertainment plans to file a lawsuit today against the federal government, alleging U.S. Army Corps of Engineers and National Weather Service negligence led to major damage to its luxury hotel during the Cumberland River flood two years ago.

The suit will contend that the Corps was negligent in opening the spillway at the Old Hickory Dam on May 2, 2010, and the Weather Service failed to notify the public that water levels would reach the 100-year flood levels that devastated homes and businesses.

Gaylord and A.O. Smith filed initial claims with the Corps and the Weather Service for compensation in October, a requirement under the 1946 Federal Tort Claims Act, which governs how legal action can be filed against the federal government.

Once the two agencies rejected the Gaylord and A.O. Smith claims, the companies were free to file a lawsuit but had to endure a six-month waiting period.

For more:  http://www.tennessean.com/article/20120430/BUSINESS01/304300044/Gaylord-to-sue-Corps-over-2010-flooding

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by | April 28, 2012 · 6:18 am

Hospitality Industry Legal Risks: West Virginia Hotel Owner Sued Over "Similar Name" In "Common Law Trademark" Lawsuit

“…The suit also seeks Bhatin to change the hotel’s domain name, hotelmorgantown.com, and to file a cancellation of the Hotel Morgantown trade name with the Secretary of State’s office…”

Officials of an 86-year-old Morgantown hotel are crying foul over a nearby hotel’s name, saying the similar name violates its longstanding common law trademark. Filed April 26 by The Hotel Morgan Company against Himanshu Bhatin and his company Sahaj Morgantown LLC, the suit seeks Bhatin to change the name of his Hotel Morgantown to one that does not contain any variation of the words “hotel,” “Morgan” and “Morgantown.”

Hotel Morgan opened in 1925 as a “premier full-service lodging, restaurant and banquet facility,” the suit states, and has gained “regional and national recognition and prominence.”

Bhatin, a New Jersey resident, opened Hotel Morgantown & Conference Center in 2011. 

“Although Hotel Morgan is not registered as a state or federal service mark, it has acquired ‘secondary meaning,’ and is lawfully entitled to the protection afforded to common law trademarks under various state, federal and international laws, conventions and policies.”

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by | April 27, 2012 · 7:02 am

Hospitality Industry Health Risks: Two Wisconsin Women File "Salmonella Sushi Lawsuit" After Eating Sushi Rolls At Local Restaurant; Any Party In "Chain Of Distribution" Potentially Liable Under Product Liability Laws

Food-poisoning cases like the Salmonella sushi lawsuit generally fall under product liability laws. Any party in the product’s chain of distribution — including manufacturers, retailers, and middlemen — can potentially be held liable, depending on the source of contamination.

“…distributors may have removed the packaging before selling it to restaurants, which may not know they’re serving a potentially contaminated product, the Wisconsin victims’ lawyer told MSNBC…”

In a Salmonella sushi lawsuit filed last week, two Wisconsin women, 22 and 33, claim they were severely sickened after eating tuna sushi rolls at a local restaurant, MSNBC reports. The sushi rolls allegedly contained ground yellowfin tuna with Nakaochi Scrape.

California-based Moon Marine USA has recalled 59,000 pounds of raw, ground yellowfin tuna from India, which was packaged as “Nakaochi Scrape AA” or “AAA.”

But distributors may have removed the packaging before selling it to restaurants, which may not know they’re serving a potentially contaminated product, the Wisconsin victims’ lawyer told MSNBC.

Salmonella infections generally lead to diarrhea, fever, and abdominal cramps within 72 hours, according to the FDA. Victims usually recover after about a week.

But the Wisconsin women’s infections were more severe, and required hospital treatment. One woman was diagnosed with an ulcerated colon, which her personal-injury lawsuit blames on contaminated Nakaochi Scrape.

Scientific tests show the Salmonella sushi victims were sickened by a rare type of bacteria called Salmonella Bareilly, the women’s lawyer said. Investigations are underway to determine where bacteria came from.

For more:  http://www.reuters.com/article/2012/04/25/tagblogsfindlawcom2012-injured-idUS319130664220120425

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by | April 25, 2012 · 8:41 am

Hospitality Industry Health Risks: Oklahoma Restaurant Chain Faces Multiple Lawsuits After "Salmonella Outbreak"; 68 People Confirmed Infected By Centers For Disease Control (CDC)

 “..(the Plaintiff)..sued the restaurant in February, claiming that she was sick  for two weeks after eating at Taco Bell. She’s seeking more than $75,000 in  damages…”

The Centers for Disease Control said that 68 people — including 16 in Oklahoma  — were infected with salmonella after eating at a “Mexican-style fast-food  restaurant chain.”

Taco Bell is facing a second lawsuit after a Shawnee family said their child  contracted salmonella in Oklahoma. The family said their 9-year-old got sick from eating at the restaurant.  The child spent three days in a hospital with a 105-degree fever, according to  the lawsuit.

A lawsuit filed by a Norman woman who claimed she contracted salmonella  after eating at Taco Bell was transferred to federal court.

In a court filing, Taco Bell denied it was liable for Smith’s illness.  The company asked a federal judge to dismiss it from the lawsuit.
Read more: http://www.koco.com/health/30917551/detail.html#ixzz1t4R5gjdr

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by | April 24, 2012 · 6:32 am

Hospitality Industry Employment Risks: California Supreme Court Ruling Mandates That State's Hotels And Restaurants Need Only Make Employee "Meal And Rest Periods Available"; Not Required To Ensure "Actually Taken"

The Court makes clear the following: “When someone is … employed … for five hours, an employer is put to a choice: it must (1) afford an off duty meal period; (2) consent to a mutually agreed-upon waiver if one hour or less will end the shift; or (3) obtain written agreement to an on duty meal period if circumstances permit. Failure to do one of these will render the employer liable for premium pay.” Brinker, p. 35.

At issue in Brinker Restaurant Corporation v. Superior Court was whether California employers must ensure that their employees actually take their meal and rest periods or merely make them available. To the collective relief of California employers, the court found that an employer must only provide meal and rest periods to its employees, leaving the employees free to use the period for whatever purpose they desire. The employer is not obligated to ensure no work is performed during the period.

The Court continues: “[a]n employer’s duty with respect to meal breaks … is an obligation to provide a meal period to its employees. The employer satisfies this obligation if it relieves its employees of all duty, relinquishes control over their activities and permits them a reasonable opportunity to take an uninterrupted 30-minute break, and does not impede or discourage them from doing so.” Brinker, Slip Opinion, p. 36 (emphasis added).

The Court further acknowledged that what will suffice may vary from industry to industry, but held, “the employer is not obligated to police meal breaks and ensure no work thereafter is performed. Bona fide relief from duty and the relinquishing of control satisfies the employer’s obligations, and work by a relieved employee during a meal break does not thereby place the employer in violation of its obligations and create liability for premium pay.” Brinker, p. 36-7 (emphasis added).

For more: http://hotellaw.jmbm.com/2012/04/brinker_v_superior_court.html

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