Category Archives: Liability

by | April 1, 2013 · 1:02 am

Hospitality Industry Legal Risks: Arizona Restaurant Settles “Disability Discrimination Lawsuit” For $65,000; Server With Traumatic Brain Injury Was Fired By New Manager

“…(the plaintiff) worked tirelessly to be a good server after suffering a traumatic brain injury. The ADA prohibits EEOCemployers like Outback from firing individuals like John who add so much to the workplace…”

Outback Steakhouse will pay $65,000 and furnish other relief to settle a disability discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today.

The EEOC’s lawsuit, EEOC v. OSI Restaurant Partners, LLC d/b/a Outback Steakhouse and OS Restaurant Services, Inc., Civil Action No. 2:11-cv-01754-NVW, charged Outback with firing server John Woods days after a new manager took over at Outback’s Phoenix Metrocenter location. According to the EEOC’s suit, John Woods had worked successfully under Outback’s prior manager, but a new manager terminated Woods because of his disability, traumatic brain injury.

Disability discrimination violates the Americans with Disabilities Act (ADA). The EEOC filed suit in U.S. District Court of Arizona after first attempting to reach a pre-litigation settlement through its conciliation process.

After the court denied Outback’s motion for summary judgment, Outback agreed to a 24-month consent decree that requires the company to pay Woods $65,000; revise its policies concerning disability discrimination; train its Arizona managers on the laws prohibiting disability discrimination; and post notices in Arizona Outback Steakhouses regarding employees’ rights under the ADA.

“Managers cannot fire employees because of their mistaken beliefs about what individuals with disabilities can accomplish,” EEOC Phoenix District Director Rayford Irvin said. “We are pleased with the resolution of this case, and we are hopeful that this agreement will help prevent discrimination in the workplace going forward.”

For more:  http://www.natlawreview.com/article/outback-steakhouse-to-pay-65000-to-settle-eeoc-disability-discrimination-lawsuit

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by | March 31, 2013 · 1:33 am

Hospitality Industry Data Security Risks: Hotels Are At Significant Risk Of “Large-Scale Hacking” Of Guest Personal Information, Including Information In Reservation Systems

“Data security is becoming an issue of significant importance in the hospitality industry…(because of) an increase in hacks and malware attacks, which frequently target hotel systems because they’re a rich source of cybercrime in hotelspersonal information… hackers aren’t just targeting data on hotel systems but also the information passed along to reservations systems…credit card theft is much easier — and more likely — through large-scale hacking…another reason hotel guests are vulnerable to having their personal information stolen: They’re easily distracted.”

Several days after Traci Fox visited a small independent resort in the Catskill Mountains, she received an unexpected call from a shoe store. Where did she want it to ship the $400 worth of pricey sneakers that she’d ordered?

Fox believes that her hotel may have compromised her credit card information. At least one government agency shares her concerns. Last summer, the Federal Trade Commission sued Wyndham Hotels, alleging that the company had failed to protect its customers’ personal information. As a result, the FTC claims, hundreds of thousands of credit card numbers fell into the wrong hands, leading to millions of dollars in fraud-related losses. Wyndham denies any wrongdoing and is fighting the suit.

The problem may run deeper than the theft of credit card numbers, however.

The personally identifiable information in your guest profile, such as your home address, your license plate number and your date of birth, which is attached to your reservation, can end up in the hands of a third party that offers little or no warranties about how it will protect your data. “These kinds of areas are more worrisome than some huge Visa bill,” says hotel consultant Marion Roger. “Once your identity has been cloned, you can easily spend years and hundreds of thousands in legal and other fees.”

For more:  http://www.washingtonpost.com/lifestyle/travel/the-navigator-when-you-check-in-your-private-information-may-be-checked-out/2013/03/28/07cb90ca-9599-11e2-bc8a-934ce979aa74_story.html

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by | March 30, 2013 · 1:10 am

Hospitality Industry Health Risks: Alabama Hotel Guests Hospitalized After Carbon Monoxide Poisoning Caused By “Malfunctioning Heating Unit And Faulty Duct Work”

“…the problem likely had to do with a heating unit that malfunctioned in addition to some faulty ductwork. The carbon monoxide poisoningissues impacted the fifth and sixth floors of the hotel…in addition to the 11 total guests exhibiting symptoms on Friday morning, a family of four also were said to have been experiencing flu-like symptoms. The family was urged to seek medical treatment and did so before returning to their home in Florida…”

Fifteen guests at the Renaissance Birmingham Ross Bridge Golf Resort & Spa in Hoover were taken to the hospital with carbon monoxide poisoning on Friday. According to Hoover Fire Department Lieutenant Rusty Lowe, firefighters received a call at approximately 6:30 a.m. on Friday morning about an unresponsive guest at the hotel.

Upon arrival, fire officials discovered ten additional guests who were exhibiting symptoms of carbon monoxide poisoning. The guests’ symptoms ranged from headaches and nausea to mental problems.

All of the impacted guests were transferred to a nearby hospital for treatment.

For more:  http://www.cbs42.com/mostpopular/story/15-guests-at-Birmingham-hotel-treated-for-carbon/BDBQeW5_70mbg122MdCg5Q.cspx

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by | March 29, 2013 · 1:12 am

Hospitality Industry Crime Risks: Hotel Management Must Become More Aware Of Child Sex Trafficking At Properties; Front Desk Employees And Staff Must Be Trained To Look For Visual Clues

“…front desk employees, for example, are encouraged to look for visual clues like signs of abuse or fear among Child Sex Traffickingpotential victims; young people made up to look older; and clients who pay with cash, are reluctant to provide identification or have no luggage…housekeeping staff might be alerted to criminal activity if there are an unusually large number of electronic devices in guest rooms, or many condoms in the wastebasket…”

THE travel industry — long an unwitting participant in human trafficking at hotels and on airplanes, trains and buses — lately has been increasing efforts to combat the problem, working with private advocacy groups and the federal government in long-term, coordinated initiatives that go beyond its normal philanthropic activities.

“People don’t realize how prevalent it is,” Sam Gilliland, chief executive of the travel technology company Sabre Holdings, said of the trafficking problem. “It is not restricted to certain areas in the world. It’s everywhere.”

He called human trafficking a $32 billion-a-year business, but the Polaris Project, an advocacy group, thinks it is higher. The group said that an estimated 21 to 27 million people globally are held as virtual slaves.

Stephen Barth, a lawyer and professor of hospitality law at the University of Houston, said he believed that among the travel industry’s major brands, awareness of the problem had become widespread. “The goal now is to create more awareness among the 50,000 independent hotels scattered all over the U.S. and around the world,” he said.

But challenges remain, particularly among cheaper properties. “Franchisers don’t actually operate the franchised hotels,” which can result in variable compliance, he said. And at some properties, both franchised and independent, security might consist of only one person at the front desk.

For more:  http://www.nytimes.com/2012/11/09/giving/the-travel-industry-takes-on-human-trafficking.html?emc=eta1&_r=1&

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by | March 26, 2013 · 5:19 am

Hospitality Industry Health Risks: Restaurants “Cause 250% More Foodbourne Illnesses” Than Eating At Home A New CSPI Study Finds

“…the CSPI (Center for Science in the Public Interest) found there are roughly two and half times more illnesses caused by outbreak_alert_2013_final-page-001foodborne illnesses picked up by dining at restaurants than by eating at home…restaurants were involved in 1,786 outbreaks during the decade, events associated with at least 32,919 illnesses. Private residences were involved in 922 outbreaks resulting in 12,666 illnesses…another 1,229 outbreaks occurred in multiple locations —schools, jobsites, catered events, etc.—and were responsible for at least 42,301 illnesses…”

Some of CSPI’s other findings include:

  • Foods regulated by the U.S. Food and Drug Administration (FDA) were responsible for twice as many fully investigated outbreaks as those regulated by the U.S.Department of Agriculture.
  • Dairy and produce outbreak levels remained relatively unchanged, while most of the declines came in seafood, beef, pork and poultry,
  • Pound for pound, seafood remains the most risky food, followed by poultry, produce and dairy.
  • The most common contaminant/vehicle pairing is Salmonella in poultry.

For more:  http://www.foodsafetynews.com/2013/03/fewer-people-may-be-getting-sick-from-poisoned-food/#.UVGbf0nn8eE

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by | March 24, 2013 · 8:43 am

Hospitality Industry Legal Risks: Illinois Hotel Faces Second Lawsuit For “Emotional Distress” Resulting From Drowning Of Young Boy; “Failure To Maintain Pool By Not Installing Phone And Posting Emergency Numbers”

“…the suit alleges Pheasant Run Resort and Spa, McArdle Ltd., and Oakbrook Hotels and Resorts should be held liable for the emotional distress caused to Carlos Escobar, who was 12 when he saw his stepbrother drown. Both lawsuits argue the resort failed to maintain the pool properly by Hospitality Industry Lawsuitnot posting emergency numbers or installing a phone at the pool…”

A Belvidere teen, who saw a relative drown at the Pheasant Run Resort in St. Charles more than five years ago, has sued the resort and hotel, claiming emotional distress. The suit, filed this month in Kane County court, is the second involving the Dec. 28, 2007, drowning of Javier Gonzalez, 21, of Garden Prairie, Ill.

A wrongful-death suit was filed in 2009 by the mother of the drowning victim. Daniel Murphy, a lawyer representing the plaintiffs in both lawsuits, declined to comment.

The suit also claims the resort was cited by the DuPage County Health Department at least seven times for not having a buoyed safety rope dividing the shallow and deep sections of the pool, and did not have proper lifesaving equipment on the deck.

According to the suit, Gonzalez was playing in the pool with four relatives, ages 12 through 15, when he became distressed and sank face down to the bottom near the drain. There was no lifeguard on duty and the children frantically called for help before going to their parents’ rooms for assistance, the suit states.

A Pheasant Run employee could not locate any rescue equipment, and Gonzalez was underwater for at least five minutes, the suit said. He was eventually pulled from the water, but CPR did not work and he was pronounced dead on arrival at Delnor Hospital in Geneva. Both lawsuits seek more than $50,000 in damages.

For more:  http://www.dailyherald.com/article/20130321/news/703219793/?interstitial=1

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by | March 23, 2013 · 12:10 pm

Hospitality Industry Theft Risks: South Dakota Restaurant Account Manager Charged With Stealing More Than $100,000; Deposited Checks Into Personal Account Over 7 Month Period

“…(the defendant) is accused of depositing money into her own bank account on 12 occasions, mostly through checks, with the thefts targeting Minervas of Bismarck, N.D. and the Phillips Avenue Diner in Sioux Falls totaling $97,477…(she) also reportedly deposited hospitality industry employee theftmoney electronically three other times, for a total loss to the business of $101,600. All the thefts took place between February and September last year…”

A former account manager for Minervas and the Phillips Avenue Diner has been charged with stealing more than $100,000 from the company last year. Bobbie Sue Davis, 28, worked for WR Restaurants Management when the thefts began, according to court paperwork. The company manages restaurants across North and South Dakota.

During an interview with an SFPD detective on Nov. 19, Davis allegedly admitted to stealing the money, saying she’d been having “personal financial issues” that year.

Davis was arrested on a charge of aggravated grand theft by embezzlement of $100,000 or more on Feb. 5 and released on bond. A grand jury indicted Davis this week. If convicted, she could spend up to 15 years in prison.

For more:  http://www.argusleader.com/article/20130322/UPDATES/130322021/Woman-accused-embezzling-more-than-100K-from-area-restaurant-chain

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by | March 22, 2013 · 5:48 am

Hospitality Industry Theft Risks: Maine Restaurant Owner Convicted Of Stealing Over $67,000 From Customers By “Double Billing Credit Cards”

“…(the defendant) stole money from her customers by double billing their credit cards, the prosecutor said…(she) took credit card slips from sales at her restaurant during the summer of 2010 and later that year, and ran them through for payment a second time after the employee theftrestaurant had closed…may have stolen as much as $80,000 through the fraudulent credit card charges.”

A former local restaurant owner who stole more than $67,000 from banks and customers through check and credit card fraud, but who has since paid it back, has been ordered to spend 60 days in jail for her crimes. Having pleaded no contest last fall to two felony theft charges, Jennifer Lozano, 43, on Thursday received an overall sentence of five years with all but 60 days suspended and will have to serve two years of probation upon her release.

As part of a plea deal, prosecutors had agreed to cap the unsuspended part of the sentence at nine months if Lozano paid $67,399 in restitution to people and financial institutions she stole money from. She did so, paying off the final $18,000 she owed in restitution just as the sentencing hearing was about to begin Thursday afternoon in Hancock County Superior Court.

Kellett said an investigation revealed that Lozano conducted 1,488 fraudulent duplicate credit card transactions in the fall of 2010. She repaid many customers who complained, and many were repaid by their credit card companies, but she did not repay everyone who lost money through the scheme before police learned about it. As part of the restitution order, Lozano had to repay $15,300 to a credit card company that had lost money through the fraud and to customers whom she had not already repaid.

But Kellett said that restitution amount does not reflect the full scope of the illegal credit card transactions that Lozano made. Investigators believe that not all the double-billed customers complained, and so were not repaid either by Lozano or by their credit card firms.

For more: http://bangordailynews.com/2013/03/21/news/hancock/former-mdi-restaurant-owner-gets-60-days-for-67000-theft/?ref=polbeat

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by | March 21, 2013 · 6:05 am

Hospitality Industry Property Risks: Michigan Restaurant A “Total Loss” After Fire In “Deep Fryer” Spreads Quickly Into Ceiling And Roof

“…the restaurant is a total loss and smoke enveloped the entire intersection where the Restaurant Firerestaurant is located….the fire had spread quickly to the wooden trusses that supported the roof, up above a suspended ceiling…causing the roof to collapse…”

Fire investigators have determined that a fire that destroyed the Ram’s Horn on Tuesday originated in a deep fryer in the restaurant’s kitchen. The fire spread quickly during the lunch hour. Staff and patrons were evacuated and fire crews responded at about 12:12 p.m.

No one was injured in the blaze, which took several hours to extinguish. Middlebelt between Seven and Eight Mile roads remained closed throughout the afternoon as firefighters extended hoses from several fire hydrants to battle the blaze.

When fire crews encountered the heavy smoke and heat and knew that customers and restaurant staff were out of the building, firefighters were moved outside of the restaurant, which occurred within 15 minutes, Whitehead said.

The roof collapsed while firefighters were outside fighting the fire. “It had a pretty good start,” Whitehead said.

For more:  http://www.hometownlife.com/article/20130321/NEWS10/303210566/Fire-gutted-Livonia-Ram-s-Horn-started-deep-fryer

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by | March 20, 2013 · 6:01 am

Hospitality Industry Health Risks: Tennessee Hotel Housekeepers Hospitalized After “Exposure To Carbon Monoxide” In Basement Laundry Room

hotel Carbon Monoxide Poisoning“…two housekeepers were in a basement laundry room when they began feeling dizzy and nauseous. One of the house keepers got physically sick…both women were taken to Memorial Hospital Hixson for treatment…”

Two Holiday Inn Express employees fell ill over suspected exposure to carbon monoxide. Officials with the Chattanooga Fire Department say they responded to the Holiday Inn Express on Hixson Pike around 10:30 a.m. Tuesday.

Firefighters evacuated the building. They used gas monitors to check the building and found elevated levels of carbon monoxide. The building was ventilated and aired and deemed safe to return to.

For more:  http://www.wrcbtv.com/story/21722645/2-motel-employees-fall-ill-after-carbon-monoxide-exposure

Motel management and Chattanooga Gas officials are working to determine what caused the leak and repair it.

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