Category Archives: Liability

by | May 12, 2012 · 7:11 am

Hospitality Industry Property Risks: Illinois Hotel Suffered Over $2 Million In Water Damage In 2010 After 13.5 Inches Of Rainfall Caused Flooding In Downtown Area

“…The Mechanical Rooms were flooded and heating and air-conditioning had to be taken out and replaced. The entire lower level of the building was destroyed, including irreplaceable antiques being stored down there. The structural damage was significant…”

The rain started on July 27, 2011, and by 1 a.m. on July 28, the flood gates were ordered closed. Everything the City of Galena had done to help prevent the flooding of downtown wasn’t enough as the rain came, the sewers backed up, and the water rose to 27 inches in some places. One of those places was the historic DeSoto House Hotel.

Owner Dan Kelley surveyed the damage while making sure current guests were alright. The air-conditioning was out, as well as the hot water. Some guests left, but most stayed, insisting on paying full rate for their stay. The hotel never closed its doors.

For more:  http://www.journalstandard.com/news/x1266607408/Flooded-DeSoto-House-Hotel-renovation-nears-conclusion

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by | May 11, 2012 · 6:08 am

Hospitality Industry Legal Risks: Illinois Hotel Sued For $250,000 For "Bed Bug Infestation" During 2010 Stay; Violation Of "Consumer Fraud And Deceptive Practices Act" Alleged

The suit claims hotel employees did not warn guests of the bugs before they stayed in the hotel from March 19, 2010 through May 21, 2010, according to court documents.

A couple from Nashville, Tennessee is suing an O’Fallon hotel for more than $250,000 following an alleged infestation of bed bugs during their stay. The hotel’s attorneys are fighting to dismiss the case and the hotel manager says bed bugs are not a problem.

Antwaine and Woodrow Ross allege the Days Inn O’Fallon hotel knew the critters Cinex lectularius, commonly known as bed bugs due to their tendency to be found in bedding, infested their rooms.

The Rosses seek more than $50,000 from each of five counts, which include claims the hotel violated the Consumer Fraud and Deceptive Practices Act by concealing the infestation. Days Inn attorneys have filed a motion to dismiss four of the five counts claiming in part that the Rosses “misapprehend what constitutes a nuisance and a concurrent suit to stop an alleged nuisance” and they fail to show the Days Inn acted with “deliberate intention to harm.”

To prevent bed bug issues, the hotel states a program was instituted in 2010 that included:
• purchasing special box spring covers designed for bed bugs at a cost of $2,600 a piece,
• treating each with room approved anti-bed bug powder every three days,
• any room suspected of having bed bugs is locked down for three days and professionally treated,
• increasing the frequency of routine monthly extermination services,
• inspecting 5 to 10 rooms at random during each extermination service and providing a report to management, and
• cleaning each headboard with bleach.

Read more here: http://www.bnd.com/2012/05/10/2171520/days-inn-ofallon-sued-following.html#storylink=cpy

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by | May 9, 2012 · 6:28 am

Hospitality Industry Legal Risks: Texas Hotel Sued By Former Conference Meetings Director For "Employment Discrimination"; Woman Claims Termination Due To Cancer Diagnosis

“…(the Texas woman) believes Crowne Plaza Hotel fired her because of insurance, knowing she had more follow-up surgeries required…(she) is now cancer free and has a new job, hopes to collect financial damages for medical bills and mental anguish…”

A Texas grandmother of five says she was wrongfully fired from her job because she got cancer. Now, she’s suing for employment discrimination.

Janet Hustus, 53, was working as the Conference Meetings Director for Crowne Plaza Houston in January 2011 when she was diagnosed with breast cancer. “I was devastated. When you hear those words it is very devastating,” Hustus said. “You have cancer, and you don’t know what to do. You have so many emotions.”

She went to her general manager a few days later to discuss her schedule and surgery dates. Hustus says Mathers assured her the company would work around her schedule and “support her any way possible,” including keeping her job open for her.

For more: http://abcnews.go.com/Business/texas-grandma-fired-cancer/story?id=16304786

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by | May 8, 2012 · 7:04 am

Hospitality Industry Legal Risks: "Americans With Disabilities Act" (ADA) "Website Accessibility" Lawsuits Will Force Hotels To Update Websites To Service Disabled Guests

“…Charles Schwab… announced last week that they settled a year-long claim by a blind customer that its website was inaccessible to blind, low vision and cognitively challenged customers….”

 Not only does your website need to comply with the substantive requirements for listing hotel accessible features, for example, but the website itself needs to be accessible to disabled customers.

You need to ask yourself some questions. For example:

  • What standards of accessibility is your website hosting?
  • How do you measure website compliance?
  • How often do you audit your website for ADA compliance?

Charles Schwab joins a list of 15 prominent companies which have settled website accessibility complaints. Charles Schwab agreed that it will make its website more accessible and inclusive for all customers, and agreed to implement the Web Content Accessibility Guidelines (WCAG) Version 2.0 Level AA which will make its website navigable by disabled customers.

An informal complaint backed by the threat of litigation and administrative investigations was lodged with Charles Schwab by the lawyer for a blind day trader. The claimant was a long-time Schwab customer and herself a computer programmer. One morning, she found that she could no longer navigate the Schwab website using JAWS software and was prevented from making trades on-line. The

The Department of Justice (DOJ) has not approved and adopted any formal standards for website accessibility and recently withdrew its Notice of Proposed Rule Making for web access standards. The Web Accessibility Initiative (WAI) has been working for years and has promulgated the WCAG which is widely recognized as the “gold standard” for web access. However, given the almost daily changes in technology and the complexities of cyberspace, there are no official website standards.

Most recent DOJ investigations and settlements have focused on website accessibility. Target Corp. recently paid over $6 million to settle a website ADA class action.

For more:  http://hotellaw.jmbm.com/2012/05/ada_compliance_-_charles_schwab_settlement.html

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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 4, 2012 · 10:13 am

Hospitality Industry Legal Risks: California Restaurant Found "40% Liable" In $2.5 Million Jury Award To Woman Who Had "Chicken Bone" Stuck In Her Throat While Eating

“…In a verdict delivered April 26 in Contra Costa County, a jury determined Foster Farms, which supplied the poultry for the chicken strips on the pizza, was 60 percent liable for her injuries and Pizza Bytes, which runs several Round Table restaurants in the San Francisco area, was 40 percent responsible…”

A California jury has ordered a poultry producer and a pizza restaurant franchisee to pay $2.5 million to a woman who got a chicken bone stuck in her throat. Calla Felicity, 59, told the Contra Costa Times damage from the bone has turned her from a healthy woman to someone who becomes completely exhausted after walking two blocks. She said she spent 33 days in the hospital immediately after the injury in 2010 with 11 operations and has been back in the hospital several times.

Felicity was eating a barbecued chicken pizza with her mother at a Round Table restaurant in South San Francisco when the bone got stuck.

Read more: http://www.upi.com/Top_News/US/2012/05/04/Woman-awarded-25M-for-chicken-bone/UPI-68391336149120/#ixzz1tvRtzM61

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by | May 3, 2012 · 8:02 am

Hospitality Industry Security Risks: Tennessee Motel Surveillance Video Identifies Suspects In Front Desk Register Theft

“…The clerk noticed the money missing, called police and a quick check of the surveillance video showed the two suspects running back to their room in the very same hotel…”

Cookeville Police said two men were arrested after burglarizing the motel where they were staying. Surveillance video led police to the men who robbed the motel on Interstate Drive on Wednesday night.

The desk clerk left the front office to begin preparing breakfast for guests. That’s when one suspect kept an eye on him, while the other cleaned out the register of more than $200.

Both men, whose identities were not released, were booked Thursday morning on theft charges.

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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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