Category Archives: Liability

by | January 7, 2013 · 7:46 am

Hospitality Industry Legal Risks: Hotel “Mobile Applications” Must “Post Privacy Policy” Allowing Guests To “Access And/Or Request Changes To Personal Information”

“…In the case of an online service, “conspicuously posting” a privacy policy requires that the policy be “reasonably accessible…for consumers of the online service…the consumer (must be able) to access or request mobile technologychanges to personal information, (and) the operator of the site will notify consumers of changes, and the effective date of the policy..”

Hotel companies are actively entering the mobile application space as a means of gaining market share and solidifying guest relations. In addition to online travel agents like HotelsbyMe.com, a number of brands including Omni, Choice and Starwood have developed mobile applications. However, as mobile applications gain popularity, hotel companies should consider how privacy and security laws will impact how they can use those applications.

For companies with operations in California, that issue was highlighted on December 6, 2012, when the California Attorney General filed a lawsuit against Delta Airlines for failing to include a privacy policy with a smartphone application. The lawsuit, the first of its kind, alleges that Delta violated California law requiring online services to “conspicuously post its privacy policy” by failing to include such a policy with its “Fly Delta” mobile application.

The California online privacy law

In 2004, California enacted the California Online Privacy Protection Act (“CalOPPA”). This law requires operators of websites and online services to “conspicuously post” privacy policies about the personal information that is collected, how the consumer can access or request changes to personal information, how the operator of the site will notify consumers of changes, and the effective date of the policy.

In the case of an online service, “conspicuously posting” a privacy policy requires that the policy be “reasonably accessible…for consumers of the online service.”

CalOPPA does not define an “online service” or mention “mobile” or “smartphone” applications, likely due to the fact that in 2004, smartphones and mobile applications were just being developed. However, the California Attorney General considers any service available over the internet or that connects to the internet, including mobile apps, to be an “online service.”
For more:  http://www.hotelnewsresource.com/article68597Hotel_Lawyer_on_How_New_Privacy_Law_Enforcement_May_Affect_Your_Mobile_Apps_Used_in_Marketing_.html

Comments Off on Hospitality Industry Legal Risks: Hotel “Mobile Applications” Must “Post Privacy Policy” Allowing Guests To “Access And/Or Request Changes To Personal Information”

Filed under Guest Issues, Liability, Management And Ownership, Privacy, Risk Management

Tagged as , , , , , , ,

by | January 5, 2013 · 7:45 am

Hospitality Industry Crime Risks: Washington Hotel Room Used By “Major Identity Theft And Forgery Ring”; Police Seize Laptops, Lamination Machine And Bags Of Stolen Mail

“These labs tend to be mobile…they go from hotel to hotel…the room contained a computer, two laptops, laminating paper, card stock, check stock and a hot laminator machine along with identification, checks and identity theftbags of mail that had been stolen. Also seized were more than 100 licenses and other IDs, roughly 20 hard drives and numerous other media storage devices, such as thumb drives and memory chips.

Police and U.S. Secret Service agents believe they have taken down a major identity theft and forgery ring involving at least a dozen suspects and more than 100 victims. The number of victims could grow as experts analyze computer hard drives and video surveillance footage from businesses where the suspects tried to get money. As of Friday evening, authorities estimated more than $45,000 had been stolen, but said that amount is likely to grow.

Evidence is being examined at the Secret Service’s Electronic Crimes Task Force lab in Seattle. Many of the victims — both individuals and businesses — are from Everett, but the center for the operation was traced to a hotel room in Shoreline.

That’s where police and the Secret Service found what amounted to a ID-theft factory Thursday.

For more:  http://heraldnet.com/article/20130105/NEWS01/701059947

Comments Off on Hospitality Industry Crime Risks: Washington Hotel Room Used By “Major Identity Theft And Forgery Ring”; Police Seize Laptops, Lamination Machine And Bags Of Stolen Mail

Filed under Crime, Guest Issues, Liability, Management And Ownership, Technology, Theft

Tagged as , , , , , ,

by | January 3, 2013 · 8:02 am

Hospitality Industry Theft Risks: California Hotel Guest Arrested For Using Stolen Credit Card To Pay For Room; Used Laptop On Open Wi-Fi Network To Steal Account Information

“…(suspect) allegedly rented a room at the Montage by using a stolen credit card. The fraud went undiscovered for two days while Larson accrued a $2,134 tab, but he disappeared from the resort prior to the arrival of cyber securitypolice…he used a laptop to collect credit card information from people making purchases or checking their accounts…”

An admitted identity thief, apparently expert at stealing credit card account information over open wi-fi networks, was arrested last week after skipping out on a $2,134 bill at Montage Laguna Beach, police said. Police tracked Harold Eric Larson, 37, to his hometown of Orange and arrested him on Thursday, Dec. 27, on several theft related charges, Capt. Jason Kravetz said in a statement. He is accused of using stolen credit card numbers to rent hotel rooms to for himself and friends in Laguna Beach, Newport Beach and Costa Mesa, Kravetz said.

Coincidentally, on Dec. 26 police received a complaint about guests using drugs in a room at Laguna Cliffs Inn and arrested Edward Richard York, 40, of Tustin, allegedly for possessing methamphetamine and marijuana, Sgt. Louise Callus said. Officers learned the room was rented with a stolen credit card number provided by Larson, said Kravetz.

Larson was previously arrested by Laguna police last April on 23 felony counts of fraud and theft after he was caught using stolen credit card information to rent hotel rooms.  He pled guilty to the charges and was sentenced to three years probation, one year in jail and restitution.

For more:  http://www.lagunabeachindependent.com/2013/01/02/identity-thief-held-hotel-scam/

Comments Off on Hospitality Industry Theft Risks: California Hotel Guest Arrested For Using Stolen Credit Card To Pay For Room; Used Laptop On Open Wi-Fi Network To Steal Account Information

Filed under Crime, Guest Issues, Liability, Management And Ownership, Risk Management, Technology, Theft

Tagged as , , , , , ,

by | January 2, 2013 · 8:35 am

Hospitality Industry Legal Risks: California Hotel Faces Class-Action Lawsuit Over “Fixed Percentage Withholdings” From Room Service Tips; Violation Of California Labor Law

“…(plaintiff) claims the hotel pools the tips of its room service delivery staff and withholds a fixed percentage of them…the withholdings, which have been standard policy since at least 2003, violate California labor Hospitality Industry Class Action Lawsuitslaw…he seeks compensatory and exemplary damages for unfair competition, conversion and money had and received…”

Hyatt Hotels and the Manchester Financial Group steal workers’ tips to cover “glass breakage,” whether employees have broken any glasses or not, a class action claims in Superior Court. Former room service delivery worker Leonardo Acosta sued Host Hotels and Resorts, Manchester Financial Group and Hyatt Hotels Corp.

“Hyatt and the other defendants maintain that the monies are withheld pursuant to Hyatt’s policy of reimbursing themselves for purported ‘glass breakage.’ The same percentage of gratuities was withheld from all room service delivery workers in plaintiffs’ tip pool, without regard to the amount of breakage, if any, during any pay period.

The same percentage of gratuities was withheld from all room service delivery workers in plaintiffs’ tip pool, without regard to whether any purported breakage was caused by any dishonest or willful act, or by the gross negligence of any employee … [and] without regard to the individual, if any, responsible for the alleged breakage,” Acosta claims.

For more:  http://www.courthousenews.com/2013/01/02/53536.htm

Comments Off on Hospitality Industry Legal Risks: California Hotel Faces Class-Action Lawsuit Over “Fixed Percentage Withholdings” From Room Service Tips; Violation Of California Labor Law

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

Tagged as , , , , , ,

by | December 31, 2012 · 8:06 am

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

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

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

Tagged as , , , , ,

by | December 29, 2012 · 7:43 am

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

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

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

Tagged as , , , , , ,

by | December 28, 2012 · 6:50 am

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

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

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

Tagged as , , , , ,

by | December 26, 2012 · 6:57 am

Hospitality Industry Legal Risks: Workplace Discrimination Lawsuits Increase As Companies Employ "Ethnically Diverse Labor Force"; Hotel Worker Mocked For His "Accent" Awarded $500,000 Settlement

Earlier this year, an Iraqi hotel worker in Phoenix won a $500,000 settlement from the Four Points Sheraton. EEOCHe claimed his co-workers mocked his accent and called him derogatory names. According to the EEOC, the worker’s managers didn’t take his complaints seriously, which made his workplace situation intolerable.

Workplace discrimination complaints based on national origin, including those involving language ability, increased by 76 percent from 1997 to 2011, according to the EEOC. The agency says the trend reflects a more ethnically diverse labor force.

Civil rights advocates say workplaces have become more hostile toward workers who don’t speak perfect English.

“There’s definitely a climate of fear that’s bad for everyone,” John Mejia, legal director for the American Civil Liberties Union (ACLU), told Insurance Journal.

Some workers have won large settlements in accent-related lawsuits.

For more:  http://www.insidecounsel.com/2012/12/26/accent-related-discrimination-suits-on-the-rise-sa

Comments Off on Hospitality Industry Legal Risks: Workplace Discrimination Lawsuits Increase As Companies Employ "Ethnically Diverse Labor Force"; Hotel Worker Mocked For His "Accent" Awarded $500,000 Settlement

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

Tagged as , , , , ,

by | December 24, 2012 · 7:32 am

Hospitality Industry Employment Risks: South Carolina Restaurants Ordered To Pay $391,000 In Back Wages To Workers; Servers Paid Below Mandated $2.13 Per Hour And Received Tips Only

“…the restaurants agreed to maintain future compliance with the FLSA by keeping accurate records of employees’ work hours, wages and other required employment information; paying all employees at least the Hospitality Industry Wage and Hour Litigationfederal minimum wage; and providing overtime compensation and informing employees in advance that the tip credit will be used…”

Three restaurants in South Carolina have been ordered to pay $391,000 in back wages to workers, as the result of a Department of Labor investigation. The restaurants, all individually owned branches of the San Jose Mexican restaurant chain, owe 37 employees wages for overtime and minimum wages. The DOL’s Wage and Hour Division also found violations in record-keeping provisions.

Following widespread noncompliance in the state’s restaurant industry, the Wage and Hour Division began a multiyear enforcement initiative. Since 2009, more than $2.5 million has been paid to workers, following 2,500 investigations.

All three of the restaurants failed to properly compensate employees. Servers were paid below the mandated $2.13 per hour and made to rely on tips for pay. Other employees were paid flat salaries below the minimum wage requirements, with no regard to hours worked.

For more:  http://ohsonline.com/articles/2012/12/21/three-restaurants-must-pay-391000-in-employee-back-wages.aspx?admgarea=news

Comments Off on Hospitality Industry Employment Risks: South Carolina Restaurants Ordered To Pay $391,000 In Back Wages To Workers; Servers Paid Below Mandated $2.13 Per Hour And Received Tips Only

Filed under Labor Issues, Liability, Management And Ownership, Training

Tagged as , , , , , , ,

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

Comments Off on 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

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

Tagged as , , , , ,