Tag Archives: Legal Risks

by | January 6, 2014 · 6:44 am

Hospitality Industry Legal Risks: California Hotels And Restaurants Increasingly Face “Prop 65” Toxic Substance Disclosure Lawsuits; “Two-Week Grace Period” Enacted

“…there has been an increase in these lawsuits over the years, with some lawyers targeting small businesses for everyday exposures, like California Prop 65 Toxin Warningalcohol or cigarette smoke outside a bar…Proposition 65 suits have helped make California the most litigious state in the union, and those lawsuits disproportionately affect small businesses…mostly small businesse paid about $22.5 million in Prop 65 settlements in 2012 alone…For virtually all environmental law in the U.S., it’s the government’s responsibility to go after businesses or products that are hurting consumers… But Proposition 65 doesn’t work like that. The state just puts out a list of chemicals that might hurt you. The responsibility is on businesses to warn consumers, and on consumers to sue if they don’t…”

“…In the amendment to the law passed in 2013, small business owners faced with a lawsuit now have a two-week grace period to comply…”

All over California, signs in restaurants, parking garages and other businesses warn that you could be exposed to chemicals that can cause cancer. The disclosure is mandated by 1986 state law. If a company fails to warn consumers, it can be sued.

But a lot has changed since the law was passed: The list of toxic chemicals is longer and the lawsuits are more prolific. In October, Gov. Jerry Brown signed an amendment to ease the burden on businesses.

For more:  http://www.npr.org/2014/01/05/259925903/calif-toxin-law-warns-consumers-but-can-burden-businesses

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by | December 30, 2013 · 6:52 am

Hospitality Industry Legal Risks: Pennsylvania Hotel Faces Federal “Sexual Harassment And Retaliation” Lawsuit; Woman Terminated After Making Written And Verbal Complaints

“…the hotel’s assistant manager, told the plaintiff that (the defendant) was telling others that he possessed nude photographs of Vazquez, Hospitality Industry Sexual Harassment Lawsuitssomething the woman denied…(she) met with the hotel’s manager (and asst. manager) in the spring of 2012 to discuss the situation…Vazquez subsequently offered the human resources department a written statement about the harassing conduct…Two days after she submitted her statement, the plaintiff was placed on a five-day suspension…Vazquez was told she was being suspended for voiding a transaction at the front desk when her cash drawer was short, even though the plaintiff claims she was taught to do just that in such a situation when she first started working for the defendant…After returning from her suspension on May 16, 2012, the plaintiff was immediately fired from her job…”

A Philadelphia woman who worked as a front desk agent for the Sheraton Philadelphia Downtown Hotel has filed a federal civil action against the business contending she was fired in retaliation for speaking out about harassing conduct on the part of another worker.

Crystal Vazquez, who was first hired by the defendant in May 2010, maintains that her firing exactly two years later was retribution for the plaintiff complaining about sexual harassment by the hotel’s AT&T specialist, a man identified in the complaint as Ryan Sheridan. Sheridan, who is not listed as a defendant in the litigation, allegedly told hotel employees that he and the plaintiff had been sexually intimate.

Vazquez was out on maternity leave in late December 2011, which is when Sheridan was allegedly making the comments about the supposed intimate nature of his relationship with the plaintiff, the lawsuit states.

“Needless to say, Plaintiff’s termination was a direct result of her complaints regarding sexual harassment,” the complaint reads. The lawsuit accuses the hotel of violating the Civil Rights Act and the Pennsylvania Human Relations Act.

For more: http://pennrecord.com/news/12512-sheraton-phila-downtown-hotel-named-in-federal-civil-rights-claim-tied-to-wrongful-firing-of-front-desk-agent

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by | December 26, 2013 · 10:20 am

Hospitality Industry Legal Risks: California Restaurant Ordered To Pay $5.68 Million In “Age Discrimination” Lawsuit; Acted With “Fraud & Malice” After Terminating Four “Older” Women

“…a second phase of trial the same day, the jury added a combined total of $4 million in punitive damages after finding that the restaurant Hospitality Industry Discrimination Lawsuitsacted with fraud, oppression and/or malice after terminating all four, then replacing them within a short time with younger women in their 20s…the restaurant was advertising for the plaintiffs’ replacements even after promising them that their minimum-wage jobs were safe, according to their attorney…”

Four former servers at a Woodland Hills restaurant were collectively awarded $5.68 million in a lawsuit alleging they were laid off from their jobs because of their ages. The plaintiffs, Martha Aboulafia, 61, Cheryl B. Colgin, 61, Regina Greene, 49, and Patricia Monica, 70, had a combined 47 years of service at Cable’s Restaurant at 20929 Ventura Blvd. All were let go by the restaurant’s new owner in 2010, according to trial testimony.

The women sued Cable’s and its owners, GACN Inc., in Los Angeles Superior Court in September 2011, alleging age discrimination and wrongful termination. On Dec. 17, a jury deliberated for less than two hours before unanimously awarding a combined $1.68 million in compensatory damages to the women for lost wages and emotional distress.

For more:  http://www.dailynews.com/business/20131224/4-woodland-hills-restaurant-workers-awarded-57m-in-age-discriminaton-lawsuit

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by | December 5, 2013 · 9:04 am

Hospitality Industry Legal Risks: Hotels And Restaurants Hopeful Of “Patent Troll Litigation” Relief As Congress Begins Consideration Of H.R. 3309 (The Innovation Act) On December 5

“…(Patent Troll Litigation) threaten(s) litigation if (businesses) don’t pay a licensing fee for their alleged patented technology, but their demands Hospitality Industry Patent Litigationare so obscure that it is virtually impossible to determine the validity of the patent claims, or even whether they own the patent in question. When we receive a patent assertion claim, it typically comes in the form of a letter demanding that we pay licensing fees or be taken to court…expenses include the costs associated with hiring outside counsel. In the past two years, our legal costs associated with patent trolls have increased from one-quarter of one percent to nearly twenty percent of our total legal costs…”

H.R. 3309 (The Innovation Act) requires a party alleging patent infringinement to disclose more information than is currently required in its initial pleadings.  Speficially, the bill requires a claimaint to identify the patents and claims that are allegedly infringed; and to specify how they are being infringed.

White Castle first opened our doors in Columbus in 1921. Today, our nearly 10,000 team members working in 406 restaurant locations across 12 states deliver the “Taste America Craves.” We remain a family owned business committed to our customers and our communities.  Our success has been driven by the principle that good business, great food and responsible citizenship should all go together.

The restaurant industry, with nearly one million locations, is an incredibly competitive industry. We are constantly seeking new ways to provide additional value to our customers and keep them coming back to our restaurants. This includes our online ordering applications to searching for your nearest white castle location on your mobile device.

Unfortunately, there is a rising threat to White Castle and many other companies interested in providing our customers with the experience they want…it’s called a “patent troll.”  Now, as you can assume by the name, these patent trolls aren’t your legitimate patent holders or small inventors.  These are entities that are created to exploit ambiguities in the patent system to make money off of Main Street businesses.

For more:  http://thehill.com/blogs/congress-blog/technology/192101-patent-trolls-are-gobbling-up-restaurant-innovation

http://www.gop.gov/bill/113/1/hr3309

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by | December 3, 2013 · 9:07 am

Hospitality Industry Technology Issues: Hotels And Restaurants Face “Privacy Issues” When Guests Wear “Google Glass”; Videotaping Without Permission

“…there are definitely privacy implications for those who wear and use Google Glass in public…People want to go (to restaurants and hotels) and not be known … and Hospitality Industry Google Glass Privacydefinitely don’t want to be secretly filmed or videotaped and immediately put on the Internet…as a society, know how to appropriately use our mobile phones, (and) most Google Glass wearers (should) know how to appropriately use them as well…”

In an effort to protect patrons in his restaurant from being photographed or videotaped without permission, Seattle restaurant owner Dave Meinhart  banned Google Glass from one of his restaurants. But last week, Nick Starr, a local early adopter of Google Glass, was kicked out of Dave’s other restaurant, Lost Lake Cafe & Lounge, starting a PR storm by demanding an apology and the firing of the waitress who kicked him out.

In just a few weeks, thousands of people will become the next wave of not-so-early adopters to receive Google Glass. Initially launched in early 2013, Google Glass quickly became a hot topic for tech pundits who questioned its ability to protect privacy, its usefulness, and whether or not it would be as cool as the bluetooth was.

For more:  http://www.forbes.com/sites/kellyclay/2013/12/03/how-to-not-look-like-a-jerk-with-google-glass/

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by | November 29, 2013 · 8:57 am

Hospitality Industry Legal Risks: “How To Serve Alcohol At A Company Party Without Getting Sued” By Tom Posey

HospitalityLawyer.com Education Partner II

How to Serve Alcohol at a Company Party Without Getting Sued

By Tom Posey, Partner, Faegre Baker Daniels

With the holidays right around the corner, many businesses will host festive company outings and events for their employees, including parties at the office—and often these celebrations include alcohol.

Employers need to understand the legal parameters of having alcohol in the workplace in order to establish a safe, responsible and enjoyable work environment for their employees. A few common questions from employers at this time of year are:

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Some states have laws that govern “social host liability.”  Through these laws, bartenders or social hosts can be held liable for events that result from over-serving someone (e.g. accidents, injuries, etc.).  These laws would make the organization responsible for monitoring consumption and cutting off drinking by anyone who becomes intoxicated, so be aware of the laws in your jurisdiction.

If some of our employees are under the legal drinking age, can we still serve alcohol?

Employers must ensure that no one underage has access to alcohol. If alcohol is served to a minor, the employer can be subject to the same stiff fines and penalties that a store or bar that serves a minor would face.  Accordingly, if underage employees will be attending the party, employers must be vigilant in making sure that they are not served or allowed access to alcoholic beverages.

If an employee has too much to drink and has an accident, it is still covered by our insurance, right?

Employers who provide alcohol to their employees may unwittingly negate coverage under their general liability insurance policies and be on the hook for costs associated with alcohol-related incidents or injuries, so be aware of the limitations and exceptions applicable to your organization’s employee-related policies.

Any other legal risks the organization might face if alcohol will be served at holiday functions?

There is an increased risk of sexual harassment-related complaints that result from company events where alcohol is present (e.g. the stereotypical office holiday party HospitalityLawyer Converge Solutionsthat is always satirized in movies and TV shows).  Remember that even though the function might be held outside normal working hours, employees are still afforded protection from harassment or other inappropriate conduct that might be directed at them by their colleagues.

For more:  http://hlconverge.com/index.php/component/k2/item/696-how-to-serve-alcohol-at-a-company-party-without-getting-sued

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by | November 17, 2013 · 10:21 am

Hospitality Industry Legal Risks: Florida Restaurant Faces Federal “Sexual Harassment Lawsuit”; Manager Created “Hostile Work Environment”, Retaliated Against Two Female Workers

“…(one plaintiff) worked at the restaurant from 1999 to February of 2012 and she complained to the restaurant’s owner about the manager’s Hospitality Industry Sexual Harassment Lawsuitsuse of “racial slurs in the workplace”…The manager also directed racist “pet names” of his own creation toward her…The lawsuit charges the manager used derogatory terms and slurs as part of a “vicious regime of racial and sexual harassment” at the restaurant on Canal Street, and it says “no effective action was taken to stop it.”

Two former employees of a McDonald’s restaurant in Mulberry have filed a federal lawsuit, accusing a manager of creating a hostile work environment. The women allege they were retaliated against after making complaints known to the restaurant’s owner. Cowles’ hours were drastically reduced, and she was left with “no choice” but to quit her job when the manager’s behavior continued, the lawsuit states.

Potts went on maternity leave, and when she attempted to return to work, she was informed “there was no job for her, despite the nearly perpetual turnover of employees at the restaurant,” according to the lawsuit.

For more: http://www.theledger.com/article/20131116/NEWS/131119396/1374?Title=Ex-McDonald-s-Employees-File-Lawsuit

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by | October 31, 2013 · 8:02 am

Hospitality Industry Legal Risks: New Jersey Hotel Settles “Price Gouging” Lawsuit For $75,000; Raised Prices 70 Percent During Hurricane Sandy

New Jersey’s price gouging law prohibits excessive price increases during a declared state of emergency or for 30 days after the termination of Hotel Price Gougingthe state of emergency. Excessive price increases are defined as more than 10 percent higher than the price at which merchandise was sold during the normal course of business prior to the state of emergency.  If a merchant incurs additional costs during the state of emergency, prices may not exceed 10 percent above the normal markup from cost.

A Hazlet Hotel has agreed to pay penalties for allegedly price gouging in the aftermath of Hurricane Sandy, Acting Attorney General John Hoffman said Wednesday in a press release. The Riya Hazlet Hotel, a Holiday Inn at 2870 Rt. 35, Hazlet, will pay $75,000 to settle the suit, which includes $2,951 in consumer restitution.  The state will receive $52,121 in civil penalties and $19,926 in attorneys’ fees and investigative costs, Hoffman said.

In December 2012, a N.J. state lawsuit alleged that the Hazlet Holiday Inn raised its prices more than 70 percent, from under $135 to almost $230 a night, between Oct. 27 and Nov. 5 during a declared state of emergency.

The Office of the Attorney General and its Divisions of Consumer Affairs and Law have reached settlements with another eight companies alleged to have price gouged customers following Superstorm Sandy, Hoffman said.  Under terms of these settlements, the State will obtain more than $437,000 in penalties, fees and consumer restitution.

For more:  http://www.nj.com/monmouth/index.ssf/2013/10/monmouth_county_hotel_will_pay_75k_for_alleged_price_gouging_during_sandy.html

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by | October 30, 2013 · 6:01 am

Hospitality Industry Legal Risks: New York Restaurant Found Guilty Of “Anti-Semitic Harassment”; Ordered To Pay $900,000 To Former Deliveryman

A New York restaurant deliveryman was awarded a $900,000 jury verdict for  enduring 16 years of anti-Semitic harassment by three Hospitality Industry Harassment Lawsuitssupervisors…(who) called him a “dirty Jew” and threw pennies at him while making  anti-Semitic comments; they also docked his tips.

A deliveryman for New York’s Manhattan  restaurant Mangia 57 has won a $900,000 jury verdict for the anti-Semitic  harassment he endured while working at the establishment. According to the lawsuit, night shift manager Artur Zbozien often “passed  gas” in front of Adam Wiercinski and said it was Zyklon B, the poison German  Nazis used to exterminate Jews during the Holocaust, the New York Post reported.

Mr. Wiercinski endured the abuse for  16 years because “he was 50 years old,” his lawyer said. “He said, ‘Who else is  going to hire a 50-year-old delivery man?’ He was afraid.”

The jury reached a verdict in just four hours after hearing much of the  testimony in Polish — used by many of the restaurant’s employees, the Post  reported.

Read more: http://www.washingtontimes.com/news/2013/oct/28/jewish-man-awarded-900k-employers-anti-semitism/#ixzz2jDH9AcJ0

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by | October 19, 2013 · 6:12 am

Hospitality Industry Legal Risks: Louisiana Hotel Sued For “Negligence” By Woman Who Tripped On “Elevated Transom” In Bathroom; Seeks Damages For Surgeries For Fractures To Leg, Physical Therapy, Loss Of Consortium

“…(the plaintiff) allegedly made her way to the bathroom and “literally stumbled upon a hidden trap in the form of an unexpected change in Hospitality Industry Injury Lawsuitselevation between the bathroom and the bedroom, causing her to stumble and suffer severe injuries to her left leg, including a fracture”…The defendant is accused of failing to warn, failing to fix the change of elevation, failing to properly design the floor, failing to act as a reasonable or prudent person would under the same or similar circumstances and being otherwise negligent…(the lawsuit) seeks an unspecified amount of damages for severe and permanent injuries to her body and mind, multiple surgeries fracture necessitated, the implementation of hardware and many doctors and physical therapy visits…”

A woman who broke her leg after allegedly tripping and falling on an elevated transom is suing a local hotel where the incident occurred. Rebecca Bofinger, husband and William, filed suit against Hotel Provincial LLC, Provincial Motels Inc. and Zurich American Insurance Company in the Orleans Parish Civil District Court on August 8.

The suit states that on Aug. 9, 2012, the plaintiffs, both Baton Rouge residents, traveled to New Orleans, where they stayed at the Hotel Provincial.

Additionally, as a consequence of the accident, plaintiff William Bofinger has suffered a loss of his wife’s services, including but not limited to loss of society, loss of services, loss of consortium, and loss of love and affection.

For more:  http://louisianarecord.com/news/256016-hotel-provincial-sued-on-claims-that-hidden-trap-caused-guest-to-fracture-leg

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