Category Archives: Liability

by | June 8, 2012 · 6:07 am

Hospitality Industry Theft Risks: Guest At California Hotel Has $200,000 In Jewelry Stolen

The family believes someone took a large CD zipper case  containing $200,000 worth of gold, platinum, diamonds and once they realized  what was it in, they kept it for good.

A family visiting San Diego for a wedding lost $200,000 in  jewelry in a hotel theft.

Hangameh Mousavi says her family was visiting San Diego for  an Iranian wedding over the Memorial Day weekend and stayed at the Sheraton  Hotel on Harbor Island. It’s traditional to give jewelry to the bride and so family  members brought a lot of jewelry not only to wear, but also to give as  gifts.

“We have religious jewelry, stuff with Arabic writing,  prayers,” she explained. “Things from the revolution that they don’t make any more.  Things that have been passed down from grandparents.”

There was a conference at the hotel that weekend.

For more:  $200K in Jewelry Stolen from San Diego Hotel | NBC San Diego

Source:  $200K in Jewelry Stolen from San Diego Hotel | NBC San Diego

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by | June 6, 2012 · 7:47 am

Hospitality Industry Employment Risks: California Hotel Settles "Wage And Hour Lawsuit" For $2.5 Million; Over 400% Increase In Collective Actions Filed Nationally Since 2000

The case included allegations claiming that the hotel failed to pay employees for the time spent preparing for work and putting on and taking off uniforms that were required to be left at the hotel. Workers also alleged that they were required to fill out time sheets saying they took breaks whether they did or not.

The Hilton Hotel near Los Angeles International Airport has agreed to pay its workers $2.5 million to settle a  lawsuit alleging that the hotel withheld wages, did not pay overtime and failed to provide meal and rest breaks to about 1,200 workers, union officials said Tuesday.

The suit, filed in 2008, covers all hourly employees who worked at the hotel at 5711 W. Century Blvd. from 2004 to 2011. With more than 1,230 guest rooms, the Hilton Los Angeles Airport is one of the largest hotels in Los Angeles.

Nationally, more than 7,000 collective actions were filed in federal court in 2011 alleging wage and hour violations under the Fair Labor Standards Act, an approximately 400% increase since 2000.

For more:  http://latimesblogs.latimes.com/lanow/2012/06/hotel-settlement.html

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by | June 5, 2012 · 6:26 am

Hospitality Industry Employment Risks: U.S. Justice Dept. Files "Employment Discrimination Lawsuit" Against Nevada Hotel; "Pattern Of Unlawful Eligibility Verification"

“…The suit alleges the property  engaged in a pattern or practice of discrimination in the employment eligibility verification and reverification process…The Immigration and Nationality Act (INA) requires employers to treat all authorized workers equally during the hiring, firing and employment eligibility verification process, regardless of their national origin or citizenship status.”

The suit seeks an unspecified fine and “full remedial relief to work-authorized non-U.S. citizen employees for the losses they have suffered, including back pay and reinstatement.”

The U.S. Justice Department is suing the Tuscany Suites & Casino in Las Vegas over allegations the property discriminated against non-U.S. citizen job applicants and employees over a five-year period. The Justice Department’s Civil Rights Division in Washington, D.C., last week announced it filed a lawsuit against the hotel-casino in the Office of the Chief Administrative Hearing Officer of the agency and served  the company on May 29. The complaint alleges:

  • Tuscany treated non-citizens differently from U.S. citizens during the employment eligibility verification and reverification process by requesting non-citizen employees provide more or different documents or information than was required.
  • Tuscany subjected lawful permanent residents to unnecessary reverification procedures based on their citizenship status. These are workers with Permanent Resident Cards (green cards).

The suit says the Tuscany had been hit with a discrimination complaint in early 2011 by an unidentified “charging party,” and that in October the Justice Department’s Office of Special Counsel notified the Tuscany “it was expanding the investigation to include a possible pattern or practice of document abuse against non-U.S. citizens.”

For more:  http://www.vegasinc.com/news/2012/jun/04/justice-department-alleges-las-vegas-casino-discri/

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by | June 4, 2012 · 6:19 am

Hospitality Industry Legal Risks: Missouri-Based Restaurant Chain Settles $10 Million "Drunk Driving Lawsuit" Brought By Family Of Brain-Damaged Boy

The parents of Abdallah Khader, now 6, sought $10 million from Kansas City, Mo.-based Applebee’s in a civil lawsuit…Abdallah Khader suffered damage to 80% of his brain in the crash, and his family incurred massive medical expenses. Their lawsuit asked for $10 million to cover round-the-clock medical care along with lost future earnings, mental anguish, and pain and suffering — all typical damages in a personal-injury case.

The Khaders’ lawsuit accused workers at a Mansfield, Texas, Applebee’s of serving a man 23 drinks in less than two hours, leading him to drive drunk and crash into the Khaders’ car. A law firm’s investigation was key to the Applebee’s settlement, the family’s lawyer said.

The firm’s investigation dug up the alleged drunken driver’s Applebee’s receipts, which showed he paid for nearly two dozen drinks in a two-hour span. Police determined the driver’s blood-alcohol level was more than three times Texas’ legal limit, which is 0.08%.

The Khaders sued Applebee’s and the drunken driver, a repeat DWI offender who also faces criminal charges related to the crash. The driver’s criminal trial is pending, KTVT reports.

For more:  http://www.reuters.com/article/2012/05/31/tablogsfindlawcom2012-injured-idUS369201020620120531

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by | June 2, 2012 · 6:40 am

Hospitality Industry Legal Risks: Widow Sues Missouri Sports Bar For "Wrongful Death And Negligence" After Party Tent Collapsed During High Winds

The lawsuit claims the bar was  negligent in failing to properly inspect the tent and by allowing customers  underneath it, even as weather forecasts warned of dangerous conditions…Kilroy’s had obtained a city permit for the tent April 11. But city officials  noted that their inspectors have no way to test a tent for structural strength  to make sure it can withstand 90 mph winds, an industry standard cited in the  local ordinance.

The wife of a man killed in the April 28 storm accident at Kilroy’s Sports Bar has filed a wrongful death suit against the pub and the company that  leased and installed the tent that collapsed on more than  100 patrons. Alfred Goodman, 58, of Waterloo, suffered head and neck injuries when  heavy wind gusts — estimated at up to 50 mph — lifted a party tent at the bar  from its moorings and pushed it and its heavy metal posts against a railroad  trestle.

Goodman was pronounced dead at St. Louis University Hospital. Another 16  people went to the hospital, and about 100 total were treated on the scene, for  a range of injuries.

Read more: http://www.stltoday.com/news/local/crime-and-courts/lawsuit-filed-by-widow-of-man-killed-in-st-louis/article_1a4c7cce-abfb-11e1-9dc8-001a4bcf6878.html#ixzz1we8mnojm

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by | June 1, 2012 · 7:47 am

Hospitality Industry Payment Fraud Risks: Florida Hotels Victims Of $15,000 Scam By Guests; Legitimate Credit Cards "Switched" To Prepaid Debit Cards

“…(three men) racked up roughly $15,000 in charges at several Disney hotels earlier this year and then left without paying before hotel staff ever realized what happened…Each man checked into a hotel with a legitimate credit card but then switched the room charges to prepaid debit cards that each had less than $10 in value…”

Falk, 36, told deputies they pulled off the scam by taking advantage of a loophole in the way Disney charges resort guests that he discovered during a legitimate vacation four years ago. Then they charged thousands in theme-park purchases to their rooms. Since the hotel limited charges to between $1,000 and $1,500 per room, the fraudulent purchases went undetected since they stayed below those amounts, they told deputies.

Nero, 39, told deputies they visited resort hotels seven times and reserved a total of 13 rooms from February to April. The three could still be living the high life had it not been for a vigilant cigar shop employee, a report says. The employee contacted authorities after Falk allegedly came into the shop several times to buy hundreds of dollars worth of pricey cigarettes.

The employee told police that Falk was spending more money than most of the other customers but what really made him suspicious was that Falk never seemed to care what brand of cigarettes he bought. According to the shop owner, most smokers are loyal to their brands.

For more:  http://articles.orlandosentinel.com/2012-05-31/news/os-disney-hotel-scam-20120531_1_hotels-shop-owner-room-charges

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by | May 31, 2012 · 6:26 am

Hospitality Industry Business Risks: Hotel Owners Must Consider "Business Loss/Interruption Insurance" As Part Of Comprehensive "Disaster Insurance" Coverage

“…many hotels don’t have business interruption insurance because it comes with higher premiums and deductibles…(one hotel) close to the Kentucky Derby area was hit by a tornado…the hotel wasn’t damaged, but they lost all of their utilities. If they hadn’t had that business loss insurance, they would have lost all of that income they would have generated during the race.”

After two tornadoes hit the same Midwest region in the United States within a year and caused extensive hotel damage, disaster insurance deductibles are on the rise and hoteliers are mulling their coverage options.

  • Higher deductibles – While premiums appear to be remaining steady, insurance companies in the Midwest are charging a higher rate of percentage deductibles to help keep costs down, he said. As an example, if a hotel had $100 million in coverage and there was a 5% deductible, the deductible would be $5 million.
  • Wind and flood insurance premiums in the Midwest remain relatively flat overall, with slight increases for some hotels. In other parts of the country, such as coastal areas, the cost of wind and flood insurance has risen 8% to 10% on average, according to sources.
  • Reinsurance options—insurance that is purchased by one insurance company from another—are available, as are percentage deductibles based on the amount of coverage rather than a flat rate.
  • Wind deductible buy-back insurance—which provides a buy-back policy that reduces the higher percentage deductible—with deductibles most likely still will be higher than the flat deductibles previously offered.
  • Storm surge coverage is available under a flood plan or wind storm plan. Some policies exclude floods altogether.
  • Business loss/interruption insurance - Hotels impacted after the 9/11 terrorist attacks and hotels in California affected by the 1994 Northridge, California, earthquake would have benefited greatly from business loss/interruption insurance.

For more:  http://www.hotelnewsnow.com/Articles.aspx/8282/Hoteliers-mull-disaster-insurance-options

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by | May 30, 2012 · 6:53 am

Hospitality Industry Compliance Risks: Hotels Must Have "Written ADA And Local Accessibility Policies And Procedures" To Avoid Costly Litigation

 “…(without) written ADA and local accessibility policies and procedures for your hotel or timeshare property, then you are taking unnecessary risks…New Guest Room Requirements for Mobility and Communication Features requirements apply to new and altered public accommodations…”

What Can You Do to Avoid Liability?

  • Training – Training is critically important, and it can help prevent expensive litigation. Thought must go into the preparation of an accessible room, and the approach must be different depending on the disability of the individual who has booked the room. JMBM performs site inspection surveys and works with hotel operators to train the staff to address the needs and concerns of individuals with disabilities.
  • ADA Surveys/Site Inspections – Even if you own or operate a newly constructed property, an ADA Survey will likely reveal areas of non-compliance and rooms for improvement in policies and procedures. By working with a CASp (Certified Access Specialist program) certified consultant, you may enjoy certain protections against liability while you seek to bring your property into compliance.
  • Website Accessibility – This is an area of focus for the Department of Justice. This area is evolving, but your website must already comply with all current reservation requirements.

For more:  http://hotellaw.jmbm.com/2012/05/ada_compliance_panel.html

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by | May 29, 2012 · 7:13 am

Hospitality Industry Legal Risks: Hotel Management Must Review Social Media Policy For Employees To Ensure Restrictions Do Not Violate "NLRB Section 7 Rights"

“…in late February 2012, the NLRB filed a complaint against a group of Hyatt Hotels alleging, among other things, that the restrictions placed on the use of social media, such as admonitions not to comment on hotel properties or locations, or to use the Hyatt brand/logo or photos of the properties, were overboard and discriminatory…”

The NLRB reports expressed concerns regarding attempts by an employer to block — for example — employees from using a company’s trademarked logo in social media. That was considered, generally, to be in violation of an employee’s Section 7 rights.

“Interests protected by trademark laws — such as the trademark holder’s interests in protecting the good reputation associated with the mark from the possibility of being tarnished by inferior merchandise sold by another entity using the trademark and in being able to enter a related commercial field and use its well-established trademark, and the public’s interest in not being misled as to the source of products using confusingly similar marks — are not remotely implicated by employees’ non-commercial use of a name, logo, or other trademark to identify the Employer in the course of engaging in Section 7 activity” (2012 Report).

Yet, such disclaimers are sometimes required by the Federal Trade Commission. In fact, under the revised regulations published by the FTC in 2009, if anyone other than a company or the brand owner itself advertises or talks about the company’s product or service, the FTC requires the disclosure of the relationship between the “talkee” and the “brand,” so that potential consumers understand that the recommendation or information contained in the social-media posting could be biased (See generally 16 C.F.R. §255.)

For more:  http://www.hreonline.com/HRE/story.jsp?storyId=533347702

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by | May 27, 2012 · 6:54 am

Hospitality Industry Security Risks: Alabama Hotel Security Guard Arrested On Murder Charges After Shooting Man

Police later learned (victim) and the suspect, a security guard at the hotel, had gotten into a verbal altercation with the victim prior to the shooting.

A 24-year-old security guard has been arrested and charged with murder in connection with a late night shooting at a Birmingham extended-stay hotel. When officers arrived they found a male suffering from multiple gunshot wounds in the parking lot of the facility. A 24-year-old female was also located by officers and had been shot in the leg. She was identified by police as being the girlfriend of the male. Her injury is non-life threatening.

Birmingham Fire and Rescue arrived to the scene and pronounced the man dead on the scene. He is identified as 27-year-old David Winston of Birmingham.

The guard, 24-year-old Pierre Myles of Bessemer has been arrested. A Murder warrant with a $75,000 bond, as well as an Assault warrant with a $15,000 bond has been obtained against Myles. He is being held in the Jefferson County Jail.

For more:  http://www.abc3340.com/story/18632202/hotel-security-officer-arrested-in-connection-with-friday-shooting

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