Tag Archives: Lawsuits

by | June 6, 2013 · 6:15 am

Hospitality Industry Legal Risks: Maryland Restaurant Owner Faces “Sexual Harassment And Retaliation” Charges In Lawsuit Filed By EEOC

“…the EEOC seeks injunctive relief prohibiting Basta Pasta from engaging in sexual harassment or retaliation, as well as lost wages and compensatory and punitive damages for Smith, Doe, Kokkinakos and other similarly-situated female employees, and other affirmative EEOCrelief…’No employee, male or female, should have to endure being subjected to offensive sexual comments and touching in order to earn a living, but the unlawful harassment is even more vile and intolerable when it includes sexual assaults by a company owner’…”

SPOA, LLC, which runs the Italian restaurants Basta Pasta in Fallston and Lutherville-Timonium, Md., subjected female employees to flagrant sexual harassment and fired a manager who complained about the harassment, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit filed today.

The EEOC alleged that the restaurant owner repeatedly subjected female employees, some of whom were teenagers, to unwelcome and offensive sexual harassment, including touching them on their buttocks, lower backs and shoulders; rubbing his genitalia against the buttocks of female employees; leering at female employees and making comments about their bodies, including calling them “sexy” or “hot;” making sexually suggestive remarks and crude sexual innuendos; and asking for massages.

The EEOC further charged that the owner pressured female employees to have alcoholic drinks at the end of their shifts and acted offended if they did not stay and drink.  The EEOC alleges that the owner gave one female employee, “Mary Smith,” alcohol, causing her to pass out and later wake up vomiting, and that Smith believed the owner drugged her in an attempt to sexually assault her.  The EEOC also charged that the owner took another female employee, “Jane Doe,” to his house, purportedly to talk about a management opportunity, but instead Doe believes he drugged and sexually assaulted her.  (Given the public interest in protecting the identities of sexual assault victims and attempted sexual assault victims, the EEOC is utilizing pseudonyms.)

The sexual harassment was so intolerable that these two employees felt compelled to quit their jobs, the EEOC says in the lawsuit.  Jane Doe was 18 years old when she started working for the company and 21 years old when she was forced to quit her job due to the sexual harassment.

The EEOC also charges that a restaurant manager, Dimitra Kokkinakos, had complained to management about the owner’s sexually offensive behavior but the company failed to take action to stop the harassment.  After learning that Kokkinakos had been in touch with Jane Doe, the restaurant warned Kokkinakos to “keep her mouth shut” and fired her in retaliation for her opposition to the sexual harassment.  The restaurant also threatened Kokkinakos when she participated in the EEOC investigation, including pressuring her to recant her testimony, according to the lawsuit.

For more:  http://www.eeoc.gov/eeoc/newsroom/release/6-5-13.cfm

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by | June 5, 2013 · 6:33 am

Hospitality Industry Legal Risks: Texas Restaurant Group Faces “Wage Violation Class-Action Lawsuit” Over Tip Sharing, Food Discount Deductions

“…(the lawsuit) alleges that a Rainforest Cafes policy illegally required servers to share their tips with some employees who were not part of the wait staff…(plaintiffs were forced) to split tips with hosts, who do not qualify as wait staff because they do not serve food or beverages, or clear Hospitality Industry Wage Violation Lawsuitstables…The suit also targets a “discount program” at Rainforest Cafe that deducts a flat fee from employee paychecks to cover any drinks consumed at work and provides a discount on food…the deduction is too high and violates state law by requiring employees to pay more for food than it costs the employer…”

A Boston law firm filed a suit seeking class-action status Monday against one of the nation’s largest restaurant groups alleging the company’s Rainforest Cafe in Burlington violated state wage laws. Two servers employed at the Rainforest Cafe since 1998 are named plaintiffs in the case. Hundreds of workers might qualify for damages, according attorney Hillary Schwab of Fair Work, P.C.

The defendant, Landry’s Inc., is the Houston parent company of more than 40 restaurants chains across the county with total US sales of about $1.67 billion last year, according to restaurant industry research firm Technomic. Landry’s, run by chief executive Tilman J. Fertitta, a Houston billionaire, owns a number of restaurants groups with a presence in Massachusetts, including Morton’s The Steakhouse, Chart House, McCormick & Schmick’s, and the Oceanaire Seafood Room.

The plaintiffs are seeking restitution for all gratuities not received, wages not paid in full, money deducted from pay, and all court and attorney fees. Schwab said she will attempt to determine whether the tip practice is limited to the Rainforest Cafe or is a Landry’s corporate policy that might affect other restaurants in the state.

For more:  http://www.bostonglobe.com/business/2013/06/03/rainforest-cafe-servers-sue-restaurant-over-tip-policy/IOwix0twRIooe1FP8Cz4fJ/story.html

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by | May 31, 2013 · 6:00 am

Hospitality Industry Legal Risks: Hawaii Restaurant Group Settles “Sexual Harassment” Lawsuit With EEOC For $150,000, Harassment Training For All Employees & Managers

“…the (kitchen) supervisor subjected the workers, some of whom were between the ages of 17 and 19, to sexual comments, language and advances, the EEOC said.  Upon reporting the harassment to the general manager, the EEOC said, Panda Express management failed to take EEOCenough action to stop or correct the situation…”

Chinese quick service restaurant giant Panda Express will pay $150,000 to settle an EEOC lawsuit on behalf of at least three female teenagers who were allegedly sexually harassed between 2007 and 2009 while working in a restaurant in Kauai, Hawaii, the federal agency announced today.

Sexual harassment violates Title VII of the Civil Rights Act of 1964.  The EEOC filed its lawsuit in September 2012 in U.S. District Court for the District of Hawaii (EEOC v. Panda Express, Inc. and Panda Restaurant Groups, Inc., Case No. 1:12-cv-00530-SOM-RLP) after first attempting to reach a pre-litigation settlement through its conciliation process.  As part of the settlement announced today, the parties entered into a two-year consent decree requiring Panda Express to designate an in-house equal employment opportunity (EEO) coordinator; revise and distribute its anti-harassment policy and procedures; and provide annual sexual harassment training to all employees in Kapaa and to all general managers in the state of Hawaii.  EEOC will monitor compliance with the agreement, and Panda Express agreed to reinforce its protocols relating to complaints of sexual harassment in its Hawaii region.

“We commend Panda Express for working with the EEOC to correct serious lapses in dealing with sexual harassment in the workplace,” said Anna Y. Park, regional attorney for the EEOC’s Los Angeles District Office, which includes Hawaii in its jurisdiction.  “We trust that Panda Express’s company values are consistent with the goals of the EEOC’s mission, and we commend them for agreeing to broader injunctive remedies to ensure that the workers in Hawaii are protected.”

For more:  http://www.eeoc.gov/eeoc/newsroom/release/5-29-13a.cfm

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by | May 27, 2013 · 6:37 am

Hospitality Industry Employment Risks: Mississippi Restaurant Sued For “Race Discrimination” By EEOC; Hired Only Whites As Servers, Bartenders And Other Front-Of-The-House Positions

“…The EEOC  claims Stone Pony Pizza refused to hire African-American  applicants as a class for certain positions because  of their race.  Stone Pony is alleged to  have hired only whites for front-of-the-house positions such as server,  hostess, waitress, and bartender, and hired African-EEOCAmericans for  back-of-the-house positions such as cook and dishwasher. Additionally, the EEOC  charged that Stone Pony maintained a  racially segregated workforce and failed to keep job applications as required  by law…”

Stone  Pony Pizza, Inc., a Clarksdale pizza restaurant and bar, violated federal law  by refusing to hire a class of African-American applicants because of their  race, according to a lawsuit filed on Friday, May 17, 2013 by the U.S. Equal  Employment Opportunity Commission (EEOC).

The EEOC filed suit, Civil Action No., 4:13-cv-00092, filed in U.S. District Court for the Northern District of  Mississippi, Greenville Division, after first attempting to reach  a pre-litigation settlement through its conciliation process. The  suit was brought under Title VII of the Civil Rights Act of 1964 which  prohibits discrimination based on race and color.  The suit seeks monetary relief in the form of  back pay, compensatory and punitive damages, hiring relief and an injunction  against future discrimination.

“Employers simply cannot  refuse to hire applicants based on their race, nor can they segregate employees  into certain positions based upon their race,” said Katharine Kores, district  director of the

EEOC’s Memphis  District Office.  “Applicants should be  evaluated based upon their qualifications, not the color of their skin.”

Eliminating barriers in recruitment and hiring, especially  class-based recruitment and hiring practices that discriminate against racial,  ethnic and religious groups, older workers, women, and people with  disabilities, is one of six national priorities identified by the Commission’s  Strategic Enforcement Plan.

For more:  http://www.eeoc.gov/eeoc/newsroom/release/5-20-13.cfm

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by | May 25, 2013 · 5:46 am

Hospitality Industry Legal Risks: Texas-Based Motel Group Faces “Class-Action Lawsuit” Over “ADA Pool Lift” Non-Compliance; “No Plan Or Policy Making Pools Accessible By Disabled People”

“…the defendant’s hotels, which are places of public accommodation, have barriers to use of the pools…the pools do not have a fixed pool lift or Hospitality Industry Class Action Lawsuitsother acceptable means of entry for disabled persons, notwithstanding that such modifications are readily achievable…the existence of barriers to use the pool at the defendant’s hotels deterred the plaintiff from staying at the defendant’s hotels, the suit says.”

G6 Hospitality Property LLC is facing a class action lawsuit alleging it is not complying with the Americans with Disabilities Act. The litigation, initiated May 20 in the Houston Division of the Southern District of Texas by plaintiff Dana Bowman, claims G6, doing business as Motel 6, failed “to design, construct and/or own or operate hotel facilities that are fully accessible to, and independently usable by, disabled people.”

Bowman, a retired Army sergeant first class, asserts that he called the respondent prior to visiting Houston on business to see if its hotels’ pools had some means of access for the disabled such as himself only to be told there were none, adding he “independently” verified the absence of a pool lift at the facilities.

According to the original petition, the respondent “does not have a plan or policy that is reasonably calculated to make all of its hotels fully accessible to and independently usable by disabled people.”

A jury trial is requested.

For more:  http://setexasrecord.com/news/285525-class-action-lawsuit-argues-motel-6-pools-inaccessible-to-disabled-guests

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by | May 24, 2013 · 6:33 am

Hospitality Industry Legal Risks: A List Of “High-Profile Restaurant Lawsuits” Over The Past Twenty-Five Years

  • McDonald’s customer suing over hot coffee burning her legsHospitality Industry Lawsuit

In 1992 Stella Liebeck spilled a cup of McDonald’s coffee that she had between her knees, scalding her thighs, buttocks and groin. The 79-year old woman, who later sued, suffered third-degree burns on six percent of her body. The lawsuit, which gained national attention, initially resulted in a jury awarding Liebeck $160,000 to cover medical expenses and an additional $2.7 million in punitive damages. The jury held McDonald’s 80% responsible and Liebeck, who resided in Albuquerque, New Mexico, 20% responsible for the accident. McDonald’s, who appealed the verdict, eventually settled the case with Liebeck for an undisclosed amount, less than $600,000.

  • Woman sues Wendy’s because she claimed there was a finger in her chili

Industry watchers were horrified in 2005 when a woman from Las Vegas claimed to have found a finger in her bowl of Wendy’s chili at a San Jose, California unit. Because of the adverse publicity sales at Wendy’s declined nationwide. Following the incident the FBI ran the fingerprint of the detached finger through its database with no matches found, and Wendy’s offered a $50,000 reward for information leading to the source. As it turned out the woman, Anna Ayala, had a history of lawsuits, filing 13 in Nevada and California. Ultimately the finger was traced to an associate of Ayala’s husband who had lost the finger in an industrial accident. Ayala later pleaded guilty to conspiring to file a false claim and attempted grand theft.

  • Foodmaker’s 90 lawsuits over Jack in the Box E. coli outbreaks

The restaurant industry collectively held its breath in 1993 when four children died of an E. coli 0157:H7 outbreak and 600 others were sickened. The outbreak occurred as a result of patrons eating undercooked hamburger patties at Jack in the Box locations in the Pacific Northwest. Parent company, Foodmaker, faced 90 lawsuits, each of which was settled quickly, some in excess of $7 million. The company, which stared down bankruptcy, lost thousands of customers as a result of the tragedy. Following the outbreak the chain hired highly respected food safety consultant David Theno to lead their turnaround, which ultimately made Jack in the Box the industry’s gold standard concerning food-handling practices.

  • Two Pesos versus Taco Cabana lawsuit reaches the Supreme Court

Quick-serve Taco Cabana alleged in court that the look and feel of its restaurants had been ripped off by Two Pesos, another quick-serve Tex Mex chain. Taco Cabana argued that its competitor had copied its 24-hour patio café concept, and virtually all of its interior and exterior design elements. Suing in 1987 for infringement of trade dress, the Taco Cabana lawsuit wound its way through the U.S. court system and ultimately landed in front of the U.S. Supreme Court in 1992, where the court upheld two lower court rulings. Those courts had decided in favor of Taco Cabana, awarding approximately $2 million damages.

  • In-N-Out versus CaliBurger for copying its signature burger

In-N-Out doesn’t have any units in China but its owners were none too pleased to find out that CaliBurger was serving up a Double-Double (In-N-Out’s signature burger) and also had similar architectural features, as well as palm-tree print cups and Animal style fries. Once the lawsuit for trademark infringement was filed earlier this year, CaliBurger’s owners, who were Americans with offices in Diamond Bar, California, agreed to tweak its menu and décor. “The matter has been resolved,” has been the only comment from In-N-Out.

  • Taco Bell lawsuit asks, ‘where’s the beef?

Taco Bell was recently sued in a lawsuit that essentially asked the question, where’s the beef? According to the suit the YUM-brands owned chain is using a meat mixture that contains binders, and does not meet the minimum requirements set by the U.S. Department of Agriculture to be labeled as “beef.” The lawsuit, which was filed in 2011 by an Alabama law firm on behalf of a Taco Bell customer, was eventually withdrawn but not before it had garnered headlines around the world. “This sets the record straight about the high quality of our seasoned beef and the integrity of our advertising,” Taco Bell CEO Greg Creed said at the time. “We took great exception to the false claims made about our seasoned beef and wish the attorneys had contacted us before filing and publicizing a lawsuit that disparaged our brand.”

  • BK franchisees sue parent company over $1 cheeseburger

In 2009 Burger King franchisees sued their Miami-based parent over a $1 cheeseburger promotion asking the court to agree that BK does not have the right to set prices. The National Franchisee Association, which represents more than 80 percent of the system, said BK used the promotion to boost sales in an attempt to satisfy investors at the expense of the franchisees. After a two-year court battle the franchisees dropped the suit and in the bargain now have more input on both the pricing of Value Menu items and the length of special deals. “We saw this as an opportunity to resolve our differences and move forward,” Steve Wilborg, Burger King’s president of North America, told Reuters at the time. “It’s important for our franchisees to win.”

  • The New York State Restaurant Association sues NYC over calories disclosure

The New York State Restaurant Association filed a federal lawsuit in an attempt to halt New York City’s 2008 rule that made chain restaurants disclose calorie information on their menus. The suit, filed in U.S. District Court in Manhattan, came just 10 days after the city’s Board of Health passed its new rule that would affect about 10% of the city’s restaurants. The association, which represents 7,000 eateries in the state, made the same argument two years earlier but to no avail as the rule is now completely rolled out, affecting chain restaurants with15 units or more. In a statement the city’s Department of Health said at the time. “We hoped the industry would work with us to address New York City’s obesity epidemic, but it has once again decided not to.”

For more: http://aaronallen.com/blog/restaurant-pr/ten-foodservice-lawsuits-that-have-played-out-in-the-public-eye/

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by | May 21, 2013 · 5:44 am

Hospitality Industry Legal Risks: Kentucky Motel Owners And Manager Sued For “Negligence” By Woman Injured When Stairway Broke Away From Second-Floor Landing

“… stairway connecting a second-floor landing to a third-floor landing broke away at the lower end while the women were on it…(the plaintiff) states in her Hospitality Industry Injury Lawsuitssuit that the defendants were negligent by “specifically allowing or creating a hazardous condition in the stairwell of the premises by failing to ensure that the steps were safe for use …she also alleges the owners and manager should have known about the unstable stairwell…”

One of the women injured in a staircase collapse last month at a local motel is suing the business in Madison Circuit Court. Amanda Williams filed the suit May 15, alleging the owners and operators of the Super 7 motel, Richmond Host LLC and Alisha LLC, were negligent in maintaining the property, specifically the “unstable stairwell.”

Williams also is suing Paul Patell, who is listed in the suit as the motel’s local manager. On April 23, two women were injured when a set of exterior stairs collapsed.

Williams and another woman were taken by ambulance to Baptist Health in Richmond, and one of the women later was taken to the University of Kentucky Medical Center, according to a Madison County EMS official.

Williams said she suffered “serious and severe personal injuries” to her spinal cord and legs. She will need prolonged medical attention and may require surgery, according to the lawsuit.

Williams is suing to recover the costs of her medical care, pain and suffering, mental distress, future medical expenses and lost wages.

For more:  http://richmondregister.com/localnews/x508507707/Woman-sues-Super-7-over-staircase-collapse

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by | May 17, 2013 · 5:46 am

Hospitality Industry Legal Risks: Texas Restaurant Sued For “Negligence” After Patron Drinks Beer Containing “Lye-Like Cleaning Agent”; Seeks $100,000 For Medical Costs And Damages

“…the restaurant had used the lye-like cleaning agent to disinfect the Budweiser keg that morning but had failed to properly rinse the container Hospitality Industry Injury Lawsuitsbefore refilling it with the beer (the plaintiff) would later drink…he is seeking between $50,000 and $100,000 from Red Lobster and the company that cleaned the Dallas location’s beer tap system to cover medical expenses and compensate for his physical pain…”

Though it’s an isolated incident, a man from Panama City, Fla., claims he was on the receiving end of Red Lobster’s worst nightmare when he was scorched with potassium hydroxide — lye — from a Budweiser he drank during a business lunch in Dallas earlier this month. According to The Dallas Observer, Justin Grogg took a sip of his beer and immediately felt his throat, esophagus and stomach starting to burn.

According to Grogg’s lawsuit, he got the attention of the restaurant’s manager, who told him to “drink water and go to the hospital.” The complaint alleges the manager knew that the beer tap system had been cleaned that morning with potassium hydroxide, which is caustic and can cause severe bodily harm if swallowed.

Doctors treated Grogg quickly, but he still experienced “severe pain” and was told he could develop “esophageal strictures, esophageal reflux changes, and/or pharyngeal infection in the future as a result of the ingestion of the potassium hydroxide.”

For more:  http://money.msn.com/now/post.aspx?post=1eb6230e-9215-4124-bd5f-5c9eb5ff49ce

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by | May 13, 2013 · 6:31 am

Hospitality Industry Legal Risks: Pennsylvania Restaurant Settles “Excessive Alcohol Lawsuit” For $8.9 Million; Staff To Complete “Responsible Alcohol Management Training” And Establish “Designated Driver Program”

“…(the drunk driver) consumed at least six liters of beer and several  shots of liquor over a period of about 41/2 hours…(he) vomited on a table and was  escorted out of the bar by security. He was allowed to leave, walked to his car  and crashed a short time later…his Hospitality Industry Excessive Alcohol Lawsuitsblood-alcohol level an hour after the crash was 0.219, more than twice  the legal limit…”

  • The restaurant’s staff, including managers, servers, bartenders and security, to be certified  in Responsible Alcohol Management training through an approved Pennsylvania  Liquor Control Board trainer.
  • Responsibility for identifying intoxicated guests will be included in job  descriptions for security personnel. In addition, the restaurant will establish  guidelines for responsible alcohol service and disseminate those to  employees.
  • It will use a new point-of-sales system to provide individual checks so they  know how much alcohol each customer is getting.
  • It also will provide water to  guests to slow alcohol consumption; will establish a designated driver program  providing complimentary non-alcohol beverages and will provide free light food  for guests who appear to be intoxicated.

The family of a 7-year-old girl who was killed by a drunken driver in 2010  after he left the Hofbrauhaus restaurant on the South Side on Tuesday reached a  $15.6 million settlement with the company. In addition to the financial payout, the German-style facility has agreed to  a number of changes in its protocol to try to reduce customer intoxication and  drunken driving.

Lexa Cleland, who was asleep in the back seat as her mother drove to pick up  her husband, Mark, from work the night of Dec. 4, 2010, was killed instantly  when her mother’s Toyota Camry was struck by a Ford Mustang driven by Travis  Isiminger on East Carson Street on the South Side.

The settlement breakdown pays $8.9 million to Nicole Cleland; $500,000 to  Mark Cleland; $2.1 million to the estate of Lexa Cleland; and just over $4  million to their attorneys, Goodrich & Associates, for costs and fees.

The lawsuit was filed against Hofbrauhaus and Isiminger, whose insurance will  be responsible for paying $100,000 of the settlement.

Read more: http://www.post-gazette.com/stories/local/neighborhoods-city/owners-of-south-sides-hofbrauhaus-settle-in-girls-death-for-156-million-686644/#ixzz2TBFxrkyx

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by | May 12, 2013 · 6:52 am

Hospitality Industry Legal Risks: Florida Restaurant Settles Justice Department “Disabilities Lawsuit” For $60,000; “Family Was Told To Leave Over Their Children’s Skin Condition”

Hospitality Industry ADA Lawsuits“…according to the lawsuit, Danielle Duford and her children were asked to leave the restaurant after other customers noticed the skin condition of her infant daughter. Three of Duford’s four children have epidermolysis bullosa…”

A restaurant will pay $60,000 after telling a family to leave over their children’s skin condition. As reported by the Associated Press (AP), the U.S. Justice Department announced the settlement Wednesday.

The department filed a lawsuit against the Golden Corral in Westland in February claiming that ejecting the family had been a violation of the Americans with Disabilities Act.

Justice Department civil rights lawyer Eve Hill is quoted by the AP as stating of the settlement, “No one should be excluded from participating in the basic activities of daily living on account of fears of their disability, nor should children be shamed from going out in public… We are confident today’s settlement sends that message.”

For more:  http://www.newyorkinjurynews.com/2013/05/11/Restaurant-to-pay-family-after-ejecting-them-for-kids-skin-condition_201305119426.html

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