Tag Archives: Legal Issues

Hospitality Industry Legal Risks: Georgia Restaurant Group Settles Alcohol-Related "Wrongful Death Lawsuit" For $1.1 Million; "Post-Shift Drinking By Employees Is Rampant In Restaurant Industry"

 “It is rampant in the restaurant industry…it is a
culture of post-shift drinking, and in some restaurants, drinking during the
shift. It’s almost like a fringe benefit in some high-end restaurants, this
tradition of drinking after work.”

Husk’s owner, Marietta, Ga.-based Neighborhood Dining Group Inc., and its insurer agreed last month to settle the suit for $1.1 million. The company denied fault or liability.

The fiery crash and lawsuit also have put restaurants across the USA on notice that a tradition at many restaurants — in which employees share a drink after work in a spirit of camaraderie — can have devastating consequences.

The 4 a.m. crash occurred last December, when Adam Burnell, 32, an assistant manager and sommelier at Charleston’s Husk restaurant, allegedly drove his Audi into the back of a Mustang driven by Quentin Miller, 32. The crash slammed Miller’s car into a concrete wall; it erupted in flames, trapping him inside. He died at the scene. Burnell, who prosecutors said had a blood-alcohol level of 0.24%, three times the legal limit, was charged with felony driving under the influence.

Miller’s family filed a wrongful-death lawsuit, alleging that Husk allowed Burnell to drink to excess on its premises after hours and then drive drunk. It was a stumble for a restaurant that was named “Best New Restaurant in America” by Bon Appetit magazine months earlier. Husk also was ranked one of the “101 Best Places to Eat in the World” by Newsweek magazine last month.

Burnell, who sustained minor injuries and is awaiting trial, was not named as a defendant.

Neighborhood Dining Group already had a policy that prohibits employees of its four restaurants — three in Charleston and one in Atlanta — from drinking on the premises, President David Howard says.

For more:  http://www.usatoday.com/news/nation/story/2012-09-04/restaurants-drinking-lawsuit-crash-south-carolina/57586486/1

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

Hospitality Industry Legal Risks: Texas Motel Sued By Maid Injured After Slipping Near Leaky Faucet In Break Room

She was walking near the break room area when she slipped and fell in water that had been leaking from a faulty sink…The plaintiff is suing for his alleged past and future medical expenses, mental anguish, pain and lost wages, plus all court costs.

Alleging a company failed to post a warning sign of a known danger, a maid is suing the owners of a Super 8 Motel, claiming a leaky faucet near the break room caused her to slip and fall two years ago. Port Arthur local Gricelda Gutierrez filed suit against Triangle Hospitality Inc. on July 27 in Jefferson County District Court.

According to the lawsuit, on July 27, 2010, Gutierrez was working at Triangle Hospitality’s Super 8 Motel in Port Arthur as a housekeeper. Gutierrez claims she was injured in the fall, although the suit fails to state her alleged injuries.

She accuses the defendant of negligently failing to provide her with a safe work area, alleging that the company knew of the leaky facet and did nothing to remedy the unsafe working conditions.

The suit states the defendant failed to post a warning sign of a known danger.

For more: http://www.setexasrecord.com/news/245756-leaky-sink-causes-maid-to-slip-motel-sued-for-not-posting-warning-sign-of-known-danger

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Filed under Injuries, Insurance, Labor Issues, Management And Ownership, Risk Management

Hospitality Industry Alcohol Risks: Mississippi Casino Resort And Spa Sued For $75 Million By Family Of Man Who Died After Consuming "Free Drinks"

The suit claims casino workers kept serving free drinks to 30-year-old Bryan Lee Glenn in August 2009, ignoring pleas from the drunken man’s family to stop serving him. 

A lawsuit claims a Mississippi casino served so much alcohol to a man taking powerful prescription painkillers that he died on the floor of his hotel bathroom. The lawsuit against IP Casino Resort and Spa in Biloxi was filed Wednesday in U.S. District Court in Gulfport. It seeks damages of $75 million.

The suit says Glenn died in his hotel room. He’d taken prescribed painkillers including Percocet, morphine and Xanax, as well as antipsychotic medications in the three weeks before his death, the lawsuit says. He was being treated for physical injuries as well as psychosis and hallucinations. Glenn had suffered a traumatic brain injury in a 2004 four-wheeler accident, then suffered back injuries in a 2007 car wreck.

Read more here: http://www.miamiherald.com/2012/07/27/2915715/75m-lawsuit-claims-casino-let.html#storylink=cpy

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Filed under Claims, Guest Issues, Health, Insurance, Liability, Management And Ownership, Training

Hospitality Industry Legal Risks: North Carolina Companies Outlawed From Firing Employees Before Or After Filing Legitimate Workers' Comp Claims

The North Carolina Retaliatory Employment Discrimination Act (REDA) outlaws discharging em­­ployees for filing workers’ compensation claims. It’s a protected activity. 

Equally illegal: Jumping the gun by firing employees before they ­actually fill out the workers’ compensation paperwork. Employees are also protected when they inform a supervisor that they may be filing a claim soon.

Recent case: Shannon worked as a property manager for M&M Properties for just three weeks. While cleaning a hotel room as part of his training, Shannon said he injured himself. He reported the incident to his supervisor and said he wanted to check with his doctor before filing a workers’ compensation claim in case he had merely pulled a muscle.

Meanwhile, the company issued a disciplinary warning, outlining problems encountered during Shannon’s training, such as tardiness and lack of communication. He was fired a few days later.

He went ahead with filing the workers’ comp claim—and then followed up with a REDA lawsuit. The company argued that because Shannon hadn’t filed a claim before he was terminated, he couldn’t argue retaliation.

The court disagreed. Otherwise, employers would be able to fire employees—and dodge liability—as soon as they got hurt. (Fatta v. M&M Properties Man­­agement, No. COA11-1397, Court of Appeals of North Caro­­lina, 2012)

For more:  http://www.businessmanagementdaily.com/31679/workers-comp-claim-resist-urge-to-retaliate

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Filed under Claims, Insurance, Labor Issues, Liability, Management And Ownership

Hospitality Industry Employment Risks: Missouri Restaurant Settles "Sexual Harassment" Lawsuit With EEOC; $23,000 Payment And Employee Training Part Of Settlement

The victim will receive the payment and the training will be for all management and non-managemnt employees at its Galleria location.  Villa Galleria also agreed to report internal complaints of sex harassment to the EEOC for the decree’s 18-month term.

A restaurant in the Galleria will pay $23,000 and provide training against sexual harassment to all employees as the result of a sexual harasssment lawsuit settlement, according to the U.S. Equal Employment Opportunity Commission.

The EEOC filed a suit last September that alleged Villa Galleria allowed an employee to be subjected to sexual harassment by an assistant supervisor.  The employee alleged the supervisor tried to put his hands up her skirt and kiss her.

For more:  http://www.ksdk.com/news/article/325114/3/Galleria-restaurant-settles-sexual-harassment-lawsuit

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

Hospitality Industry Legal Risks: Nevada Hotel Owner Files "Trademark Infringement" Lawsuit Against Website Operator; Judge Issues Temporary Restraining Order

The suit says Marchex has been using a domain name called Aceplay.com, purporting to offer information about the Stratosphere and three other American Casino properties; the two Arizona Charlie’s in Las Vegas and the Aquarius in Laughlin…The suit also claims the website at issue infringed on American Casino’s “ace PLAY” loyalty club trademark.

“…U.S. District Court Judge Gloria Navarro issued a temporary restraining order requiring a domain name registrar to immediately remove or disable the aceplay.com domain name, place it on “hold and lock” and transfer it to the control of the court…”

According to the LasvVegasSun.com, the owner of the Stratosphere hotel-casino in Las Vegas has filed  suit against Marchex (MCHX) for alleged trademark infringement over the domain name AcePlay.com. American Casino claims in its suit that Marchex Sales Inc. has been involved in trademark infringement and ‘’cybersquatting,’’ which involves the registration of a website domain name that is similar to another party’s trademarked-name. Wednesday’s lawsuit says the site also includes links to online gaming sites and that Marchex is believed to generate “click-through” revenue from the online casinos.

American Casino “owns the exclusive right to use its ace PLAY trademark in connection with gaming services”

For more:  http://www.thedomains.com/2012/06/22/marchex-gets-sued-by-the-stratosphere-hotel-casino-in-las-vegas-over-the-domain-aceplay-com/

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Filed under Insurance, Liability, Management And Ownership, Risk Management

Hospitality Industry Safety Risks: Virginia Hotel Sued For $250,000 By Guest Who Fell Down Stairwell During Power Outage; No Emergency Lights Above Door To Stairwell

“…(the plaintiff) unknowingly stepped into a stairwell and fell 14 steps, according to the suit. It states there were no emergency lights above the door to the stairwell or on the stairwell itself. Christians claims he received permanent injuries, and continues to have physical pain, mental anguish and lost wages…”

A Loudoun County man is suing The Homestead in Hot Springs after falling down a flight of stairs during a power outage at the luxury hotel and spa. Allan Christian, of 20934 Winola Terrace, Ashburn, filed the $250,000 lawsuit Monday in U.S. District Court, according to online court records.

He was in one of the hotels’ restaurants at about 9 p.m. June 19, 2010 when the lights went out, leaving it “pitch black,” according to the complaint. Resort staff told Christian and other guests the lights would be on again soon, and served food to them, the complaint states. However, candles and flashlights weren’t handed out or placed in areas where people may need to walk, it states.

About 40 minutes after the power went out, Christian got up to move in the direction of the bathroom, and used “the furniture and staff to guide his movement,” the lawsuit states.

For more:  http://www.nvdaily.com/news/2012/06/northern-virginia-man-sues-luxury-resort.php

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Filed under Claims, Injuries, Insurance, Liability, Maintenance, Management And Ownership, Risk Management

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

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?

  • TrainingTraining 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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Filed under Guest Issues, Insurance, Labor Issues, Legislation, Liability, Management And Ownership, Risk Management, Training

Hospitality Industry Legal Risks: Texas Hotel Sued By Woman For "Negligence And Defamation" After Air Conditioning Unit In Room Causes Fire

 “…she lost her laptop, college course materials and “over 30 billable hours worth of work for freelance architecture jobs she was in the process of completing at the time the fire occurred.”

      She seeks damages for negligence and defamation.

A woman claims in court that she had to spend the night in a “fire-ravaged” hotel room among her charred personal belongings, while hotel employees spread false rumors that she had “tried to burn the hotel down.”      LaTanya Stevenson sued Hotel USA Partners LLC dba Crowne Plaza Austin, in Travis County Court.      Stevenson, a state worker, claims she attended a three-day regional administrative service conference at the Crowne Plaza in November 2011.      She says the hotel gave her a room where the air-conditioner was stuck on the coldest setting. Unable to budge the “black and nonresponsive” temperature controls, Stevenson says, she reported the problem to the front desk.

“When Ms. Stevenson was finally given an opportunity to speak to a member of the fire department, she learned from the fire marshal that the malfunctioning air conditioning unit, not her laptop was the root of the fire,” the complaint states. “She got back to her room to find all of her belongings either severely damaged by the water from the sprinkler system or charred by the flames, which emanated from the bad climate control unit.

For more:  http://www.courthousenews.com/2012/05/21/46648.htm

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Filed under Fire, Guest Issues, Insurance, Liability, Maintenance, Management And Ownership, Risk Management