Category Archives: Liability

by | August 16, 2012 · 6:34 am

Hospitality Industry Payment Fraud Risks: Woman Arrested After Using Stolen Credit Card With "Illegitimate Authorization Code" To Scam Florida Hotels

Police believe the alleged Discover employee was actually Betancourt’s accomplice, who gave an illegitimate code to the hotel clerk. According to investigators, codes are sold on the black market to help crooks override the system.

According to authorities, 53-year-old Debra Betancourt used an old, stolen Discover credit card linked to a closed account and a fake Arizona state ID to scam a number of hotels on Miami Beach. Police say at 11:30 p.m. Monday, Betancourt went to the Alexander Hotel on Collins Avenue. She informed a hotel employee that she made an online reservation with the stolen Discover card.

However, Betancourt’s card was declined for a charge of $4,100. Betancourt got on the phone, police said, and called someone who she said worked at Discover. The alleged employee gave the hotel clerk an authorization number, but the hotel would not complete the transaction.

Less than an hour later, at 12:15 a.m., Betancourt headed south and tried the scam again at the Cadet Hotel on James Avenue. This time, Betancourt got lucky: Her card was approved for 10 nights for a grand total of $10,105. Another hour passed, and the 53-year-old headed even further south to the Anglers Hotel on Washington Avenue, where she tried to pull the scam for the third time.

Betancourt once again ran into problems, and called the mystery Discover employee. However, the card was declined and the hotel manager contacted police. According to authorities, Betancourt kicked the manager in the groin and took off, but officers caught up with Betancourt and arrested her.

Read more: http://www.wsvn.com/news/articles/local/21008278197692/accused-hotel-scam-artist-arrested/#ixzz23ieeFMyM

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by | August 15, 2012 · 6:59 am

Hospitality Industry Legal Risks: California Hotel Sued By Homeowner Claiming Noise From Events Has Caused Them "Pain And Suffering" And "Diminished Property Value"

“Plaintiffs have been hurt and injured in their health, strength, and activity, sustaining injury to their nervous system and person, all of which injuries have caused, and continue to cause, plaintiffs great mental, physical, and nervous pain and suffering,” said the lawsuit.

The lawsuit seeks an injunction barring the resort from generating noise that disturbs the Mendez family, such as amplified music, and unspecified monetary damages.

A Fairbanks Ranch couple has sued the Rancho Valencia Resort, alleging that noise from resort events has caused them pain and suffering, diminished their property value and violated county noise ordinances.

Angel and Linda Mendez, who live on Avenida Las Perlas, filed their lawsuit in Vista Superior Court on May 22. The lawsuit alleges that the problem has occurred since a group of investors purchased the resort, at 5926 Valencia Circle in April 2010.

“Defendants, and each of them, have occupied, used, and maintained these premises in such a manner that the sound of music, shouting and other accompanying noises generated by means of a loudspeaker, sound amplification system, public address system, or otherwise, during parties hosted by defendants, and each of them, travels well beyond the borders of the defendants’ property and into the Mendez property,” said the lawsuit.

For more:  http://www.ranchosantafereview.com/2012/08/14/lawsuit-regarding-noise-issues-filed-against-resort-in-rancho-santa-fe/

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by | August 14, 2012 · 6:21 am

Hospitality Industry Employment Risks: California Hotel Sued By Former Hostess For "Harassment And Religious Discrimination"

“…Boudlal alleges in a lawsuit filed Monday, that her co-workers began taunting her, calling the Moroccan-born Muslim a “terrorist,” a “camel” and someone who learned how to make bombs at her mosque. She complained to her managers verbally and in writing, she said, with no results…”

Imane Boudlal is suing Walt Disney Corp. in federal court, saying that she was discriminated against and harassed for her religious beliefs. She also alleges that she unfairly lost her job in 2010 after refusing to remove her head scarf at work.

“It’s been hard,” Boudlal said in an interview. “I thought it was just a matter of complaining and a few days, and it wouldn’t affect my life, but it turns out … nothing has been done.”

The lawsuit charges that Boudlal, who is a naturalized U.S. citizen, decided to wear her hijab full time in 2010, about eight months after she began wearing it publicly. She contacted her supervisors at Disneyland to request an exemption to the company’s “look” policy — general appearance guidelines that, according to a Disney website, touch on items ranging from contact lens color and visible tattoos to personal hygiene.

For more:  http://www.latimes.com/news/local/la-me-disney-muslim-lawsuit-20120814,0,2971071.story

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by | August 13, 2012 · 6:24 am

Hospitality Industry Legal Risks: Restaurant Owners Need To Obtain "Product Liability And Completed Operations Insurance" To Cover "Gluten-Free" Menu Items

“…a growing trend toward “gluten-free” menu items at America’s restaurants and catered events is increasing the demand for product liability and completed operations insurance, designed to protect food-service businesses against lawsuits arising from bad reactions to food products…”

The “gluten-free” trend is helping many establishments appeal to millions of Americans who are seeking gluten-free options for a variety of reasons, including gluten sensitivities (claimed by up to 10 percent of Americans, according to the National Institutes of Health) and celiac disease (diagnosed in about 1 percent of the U.S. population, or 3 million people). While offering more options for these customers makes for good public relations, it also opens the door to a new level of potential liability.

While any restaurant could face a lawsuit arising from alleged food poisoning or food allergies, those promising “gluten-free” menu items are at even greater risk of a lawsuit if a customer should choose these options and still have a reaction. Because there are currently no standards that define exactly what constitutes “gluten-free,” some restaurants may be promoting a “gluten-free” product that is prepared in the same area as foods containing gluten, raising the potential for cross-contamination. While many people with sensitivities may not have reactions to small amounts of gluten, others with higher levels of sensitivity could have a severe reaction, raising the potential for lawsuits.

Thankfully, food service businesses — including restaurants, catering businesses, and other food service providers — can protect themselves against the high cost of lawsuits by purchasing a type of insurance known as “product liability and completed operations” coverage. This insurance not only covers lawsuits related to gluten reactions, but also those related to other food allergies, food poisoning, or other injuries or damages caused by the products a restaurant or caterer sells.

For more:  http://www.restaurantnews.com/gluten-free-trend-spurs-demand-for-restaurant-liability-insurance/

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by | August 12, 2012 · 7:05 am

Hospitality Industry Legal Risks: California Hotel Sued By Nine Guests Claiming They Contracted Meningitis From Hotel Pool; Suit Seeks Damages For Premises Liability And Negligence

“…The plaintiffs claim the hotel failed to sanitize the pool, fill it with clean water, use purification chemicals or “obtain proper certification of health & safety codes to reopen pool and water park facilities after pool closure.”

They seek medical costs, damages and punitive damages for premises liability, negligence, gross negligence, public nuisance and loss of consortium.

Nine people claim they contracted meningitis and/or other deadly diseases two years ago from a pool at the Grand Pacific Palisades Resort in Carlsbad. Lead plaintiff Gerald Green claim that during their stay in August 2010 the hotel failed to properly sanitize its family swimming pool. Plaintiff claim that hotel staff told them later that “the pool had been closed due to prior fecal or other form of contamination.”

“Plaintiffs were caused to sustain severe personal injuries, including, but not limited to symptoms of fever, headache, myalgias [muscle pain], vomiting and diarrhea, resulting in diagnoses to include meningitis and aggravated multiple sclerosis,” the complaint states.
Meningitis is a potentially fatal disease caused by inflammation of the protective membranes of the brain and spinal cord. Multiple sclerosis, which causes damage to nerves in the brain and spinal cord, is a debilitating disease with no known cure.

For more:  http://www.courthousenews.com/2012/08/06/49015.htm

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by | August 11, 2012 · 7:24 am

Hospitality Industry Security Risks: Louisiana Hotels' Guest Rooms Burglarized By Thieves Who "Checked For Unlocked Doors"; Suspects Walked Out With Laptops And Electronics

“…(suspects were) walking in the hotel, walking out with the victim’s property…laptops, electronics, iPods, and iPads…cell phones, bags of clothing, jewelry…in some cases thieves got into rooms by checking for unlocked doors…”

After arresting two suspects in a string of downtown hotel burglaries, New Orleans Police confiscated loads of property. Police say rooms at several hotels in the downtown area were burglarized in early July. It was later determined to be the work of the same set of crooks.

“I noticed my door in my room even if I just walk out it doesn’t close,” one hotel guest said. Carroll says an anonymous tip from the public led detectives to arrest this modern day Bonnie and Clyde.

A search warrant executed at her home turned up loads of evidence.

For more:  http://www.abc26.com/news/local/wgno-property-stolen-from-hotels-returned,0,6918670.story

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by | August 10, 2012 · 6:41 am

Hospitality Industry Crime Risks: Wisconsin Hotel Employee Arrested And Charged With 65 Counts Of Credit Card Fraud And Identity Theft

“…(the former employee) used customer credit card numbers to pay tuition and insurance bills. An alert customer notified police and an investigation led to his arrest…”

 A 19-year-old who worked at a hotel in Medford is facing 65 credit card theft charges. He worked at the AmericInn until late last year, and was accused of using the card numbers that hotel guests had put on-file to cover room-expenses. Nicholas Johnson is facing 59 counts of identity theft, and six counts of fraudulently using a credit card for more than $10,000. He’ll be back in court on August 14th.

Police began looking for things in common among several reports of fake credit card charges. They focused on Johnson when several of the card-holders who’d been ripped off had stayed at the same hotel. Johnson hasn’t worked there since late last year.

For more:  http://wsau.com/news/articles/2012/aug/10/hotel-worker-charged-in-credit-card-fraud-scheme/

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by | August 8, 2012 · 7:09 am

Hospitality Industry Property Risks: Michigan Restaurant "Grease Fire" Spreads Through Vent To Roof, Damaging Building And Other Businesses

“…a vent behind the restaurant was fully engulfed in fire…It went from smelling smoke to the roof being engulfed in flames…”  

A grease fire that started in Hunan House Chinese restaurant destroyed the building and several others in the same strip mall Monday afternoon. There was heavy smoke and visible flames when fire crews arrived on the scene. The roof on Hunan House collapsed shortly after.  Firefighters spent several hours battling the blaze, which also spread to other businesses including Central Barbershop and MetroPCS.

The Central Barbershop owner, Jon Dancer, told The Morning Sun that he was in mid-haircut when his business started smelling like smoke. Ali L. Bazzi said he closed the cellphone store quickly and went outside, where he watched the fire “spread like crazy.”

For more: http://www.mlive.com/news/saginaw/index.ssf/2012/08/grease_fire_that_started_in_mo.html

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by | August 7, 2012 · 6:37 am

Hospitality Industry Theft Risks: Former Pennsylvania Hotel Manager Pleads Guilty To Stealing $52,000 During Two Year Period

He was charged with stealing from the Wingate Inn in Unity Township from April 2007 to August 2009 — which he managed while also serving as mayor — before he left to buy a competing business, the Mountain View Inn.

The former mayor of Latrobe has pleaded guilty to misdemeanor charges that he stole about $52,000 from hotel restaurant where he worked and will serve two years’ probation after paying back the money.

Forty-two-year-old Thomas Marflak was charged by Westmoreland County detectives in September 2010, a few months after finishing a four-year term as the first Republican mayor in Latrobe since 1965.

Marflak has claimed the money he spent using hotel credit cards was for legitimate expenses, not his own use, but pleaded guilty Friday to avoid trial and possible prison time on felony charges.

Read more: http://www.sfgate.com/news/article/Ex-mayor-pleads-guilty-to-theft-from-W-Pa-hotel-3765751.php#ixzz22s3DAuN6

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by | August 6, 2012 · 7:26 am

Hospitality Industry Legal Risks: South Carolina Restaurant Group Pays $1.1 Million To Settle "Alcohol-Related Death" Lawsuit Caused By Assistant Manager

“…the 32-year-old (defendant) has just left his job as an assistant manager at Husk restaurant last December when he rear-ended a car being driven by 32-year-old Quentin Miller on the Ravenel Bridge. Miller died in the fiery wreck, and police say Burnell’s blood-alcohol level was 0.24 percent…”

The parent company of a Charleston restaurant will pay $1.1 million to the family of a man killed in a drunken driving crash that authorities say was caused by one of the restaurant’s employees.

The Post and Courier of Charleston reports the settlement calls for Miller’s parents to get $518,000, Miller’s common-law wife to get $91,500 and the remaining $490,000 to go to attorneys’ fees and costs. The settlement should be finalized at a hearing later this week.

Read more here: http://www.charlotteobserver.com/2012/08/05/3432731/charleston-restaurant-to-pay-1m.html#storylink=cpy

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