Tag Archives: Legal Risks

Hospitality Industry Safety Risks: Texas Hotel Sued For "Negligence" After Man Slips And Falls Down Flight Of Stairs; Failure To Post Warning Of Wet Carpet

“…According to the lawsuit, the hotel had washed, shampooed or cleaned its carpets prior to Steele’s arrival and left them in a wet and slippery condition without any warning to Steele…”

The defendant is accused of negligence for failing to inspect its premises to be sure that they were free of unreasonably dangerous conditions, dry its floors after cleaning, limit access to areas in which the floors were not yet dry, warn its invitees of the existence of the wet floors, select and hire competent contractors in such a way as to ensure that they were not creating an unreasonable risk of harm to invitees.

A Louisiana man has filed a lawsuit against the owners of a Comfort Inn claiming that they failed to warn him that the carpet was wet, which caused him to fall down an entire flight of stairs. Walter Steele filed suit against Laxmi Lodging Inc. on Oct. 12 in the Eastern District of Texas, Marshall Division.

The incident occurred on Sept. 9, 2012 as Steele was attempting to exit a Comfort Inn in Palestine, Texas, owned by the defendant by the way of the staircase when his foot slipped on the wet flooring causing him to fall down an entire flight of stairs and onto the concrete floor.  The fall caused Steele serious and permanent disabling injuries to his back and spine.

The plaintiff is seeking damages for medical expenses, lost earnings, physical impairment, pain, suffering, mental anguish, and lost earning capacity.

For more:  http://setexasrecord.com/news/275705-hotel-owner-sued-after-patron-falls-down-flight-of-stairs

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Filed under Claims, Guest Issues, Injuries, Insurance, Maintenance, Management And Ownership, Risk Management

Hospitality Industry Legal Risks: Texas Restaurant Settles "Disability Discrimination" Lawsuit For $41,500 And Agrees To Train Managers On Use Of "Hearing-Impaired Communication Systems"

“…the EEOC alleged that the company violated the Americans with Disabilities Act of 1990 by denying job applicant Michael Harrison employment at its Wendy’s franchise in Killeen, Texas, after learning of his hearing impairment…In addition to paying $41,500 to Mr. Harrison, Wendy’s agreed to provide all managers and supervisory employees training on the ADA and specific training on the use of hearing-impaired communication systems…”

A franchisee of The Wendy’s Co. fast-food restaurant chain has agreed to settle a disability discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission, paying $41,500 to resolve the case and implement employee training.

After successfully interviewing with the Wendy’s shift manager for a cooker position, Mr. Harrison was interviewed by the general manager through a telephonic system for the hearing-impaired. During the course of the interview, the EEOC alleged that the general manager told Mr. Harrison that “there is really no place for someone we cannot communicate with,” the EEOC said in the statement.

After failing to reach a prelitigation settlement, the EEOC filed the lawsuit in the U.S. District Court for the Western District of Texas in Waco.

For more:  http://www.businessinsurance.com/article/20121011/NEWS07/121019971?tags=|70|75|305|303

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

Hospitality Industry Legal Risks: Small California Restaurants Face "Expensive And Time-Consuming" ADA Lawsuits, Forcing Some To Close Down

“…Texas West BBQ in Sacramento faced a lawsuit in 2007…and made the needed changes…but then, in March of this year, a second lawsuit is forcing Texas West BBQ to make more changes to be ADA-compliant…including better striping in the parking lot, wider doors, and a larger bathroom…it will cost nearly $35,000…”

An American with Disabilities Act lawsuit was the last straw for a struggling, longtime burger business. Ford’s Real Hamburgers on Sutterville Road shut down just weeks after the governor signed a new state law that would crackdown on ADA lawsuit abuse.

Several attorneys have filed an exceptional number of lawsuits based on ADA violations. Attorney Scott Johnson has filed nearly 2,200 of them in federal court. More often than not, businesses settle after paying thousands of dollars.

“It scares you because it’s so expensive and time-consuming,” said Louise Haynes.

Gov. Brown just signed a bill co-authored by Senate President pro Tempore Darrell Steinberg, D-Sacramento, that would prevent frivolous lawsuits. It would ban demand letters. It gives the defendant time to fix the ADA violations. It’ll also prevent lawyers from stacking multiple claims to increase pay-outs.

” It prevents what I like to call ‘legalized extortion,'” said Travis Hausauer who is co-chair of Californians Against Lawsuit Abuse. His Squeeze Inn Burger restaurant was sued twice by two different attorneys.

” I got sued in court the first time, then I got sued in federal court the second time around,” said Haushauer.

Many people believe the state law is a positive step. But some say it won’t stop ADA lawsuits because attorneys will continue to file lawsuits in federal court.

For more:  http://landpark.news10.net/news/news/105381-ada-lawsuit-leads-long-time-sac-burger-business-close

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

Hospitality Industry Safety Risks: Hotel Guests At Risk Of Injury As Shower Door Glass Can Shatter With The "Force Of An Explosion"

“…court records (documented)…a federal lawsuit filed earlier this year against the Four Seasons Hotel in Chicago. A woman, who stayed at the hotel in 2007, says she opened a shower door and suddenly “the force of an explosion” threw here “violently across the toilet” and caused her “serious injuries.” Pictures are filed with the lawsuit showing tiny particles of glass layered on the hotel bathroom and filling the toilet…”

Hotels need to be really vigilant about this problem…(says) a glass expert who may soon testify in three cases where guests were injured when their shower doors shattered… “The two main types of injuries are where their bodies get cut and the other ones are where they are walking out on glass and cutting their feet.”

Another couple posts video on Vimeo showing what allegedly happened to them during their Hawaiian honeymoon at the Ohana Hotel in Waikiki West. You can hear the water running from the shower, see his wife standing in the water, and feel her pain as she obviously had to find a way out through shattered glass all over the floor. The new groom, Lance Ogren, looks into his own home video camera and says, “I heard her start to open (the shower) and I heard a big crash.” Ogren tells CBS 11 news the hotel gave them an apology and a new room.

Meshulam says most shower doors have tempered glass which is heated and then cooled creating tension for durability. He demonstrated how hard it is to break slamming a hammer into a tempered glass shower door several times before it finally shatters. He says the door are considered safe because under stress they shatter into tiny pieces; however, he says there are several reasons why a shower door might explode.

One is a small crack, like the one in your windshield, that just slowly grows out like a spider web. “When it hits a certain part of the glass where all those internal tensions are residing then everything blows up.” He also says towel bars might not be installed properly. Or, doors may not slide on the tracks correctly. These can cause pressure over time. Finally, there could be a problem during the manufacturing process if a microscopic grain of nickel sulfide gets trapped inside the glass. This manufacturing defect is a “ticking time bomb.”

For more:  http://dfw.cbslocal.com/2012/09/28/cbs-11-investigates-shattering-shower-doors/

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Filed under Claims, Guest Issues, Injuries, Insurance, Liability, Management And Ownership, Risk Management

Hospitality Industry Legal Risks: California Hotel Sued By Family Of Woman Killed Crossing Street To Parking Lot; "Duty To Ensure Safety Of Guests"

“…The civil complaint alleges The Cliffs Resort has a duty to ensure the safety of its customers but failed to do so…the location is dangerous because resort patrons who do not use valet service must park on the east side of Shell Beach Road…they must cross the busy street without the benefit of a crosswalk, traffic controls, warning signs, or proper lighting…the lawsuit claims.”

The family of a woman struck and killed by an SUV while crossing Shell Beach Road in Pismo Beach nearly a year ago has filed a lawsuit seeking to improve safety at the site. The lawsuit was filed April 11 against The Cliffs Resort and the city of Pismo Beach by San Luis Obispo personal injury lawyer  Ryan Harris on behalf of the family of Tricia Rittger.

The Los Osos resident was 39 when she was struck Nov. 19, 2011, in front of the hotel and subsequently died, leaving behind husband Aaron and a 4-year-old daughter.

Harris said the lawsuit seeks to force The Cliffs and the city to improve safety for customers walking from the parking lot across Shell Beach Road to the hotel and restaurant.

For more: http://www.timespressrecorder.com/articles/2012/09/28/news/news54.txt

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

Hospitality Industry Legal Risks: Restaurants Forced To Settle "Class-Action Lawsuits" For "Wage And Hour" Claims; Potential Damages Are Double Wages Owed Dating Back 2-6 Years

“… a restaurant  is permitted to require front-of-the house employees to “pool” their tips, the  pool may be illegal if it is shared with employees who interact with customers  only indirectly. And if the pool is illegal, regardless of the reason, the  restaurant can incur enormous liabilities to employees, even if those employees  each collect hundreds of dollars per week in tips, which is often the case…”

The hospitality industry is under siege by attorneys who stand to gain big  fees from huge class-action settlements. The same gains do not apply, however,  to the waitstaff and other restaurant employees on whose behalf these lawsuits  are filed.

On a federal level, wage and hour claims are brought under the Fair Labor  Standards Act, passed in the 1930s to address intolerable conditions, such as  child labor and six-day workweeks of 10- to 12-hour days without overtime pay.  Such conditions were long ago eradicated from most restaurants and other  establishments, but the FLSA, as well as state wage and hour laws, have  continued to expand by prohibiting common practices that many eateries have  followed for years.

When faced with class actions, most restaurants have few options. Potential  damages often amount to double the wages or tips owed, dating back from two to  six years. Prejudgment interest rates can be as high as 9%, depending on the  state, and plaintiffs’ “reasonable” attorneys’ fees can be enough to put many  operations out of business. Not included here are the costs of defense counsel,  the hit to the restaurant’s reputation, and the disruption of daily operations.  For many owners, settling the plaintiffs’ claims, regardless of their merit, is  the most reasonable business decision.

Read more: http://www.crainsnewyork.com/article/20120916/OPINION/309169972#ixzz26e5yTkfQ

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

Hospitality Industry Legal Risks: Illinois Restaurant Sued For "Negligence" After Repairman "Set On Fire" By Employee; Seeks $50,000 In Damages

“…a recently filed lawsuit argues the East China Inn was negligent, and seeks more than $50,000 in damages…the man was standing on top of the stove inspecting a sprinkler system and changing a fuse…he needed medical treatment for a year…”

A fire suppression repairman has sued the East China Inn restaurant on Randall Road in Batavia, arguing he was set on fire while working during an October 2010 visit. Matthew Rapp, 25, of Oak Forest sustained severe burns to his left leg after someone turned on a wok while Rapp was atop a stove fixing fuses, his attorney said.

“He got burned quite badly,” said attorney Matt Willens, adding Rapp was burned mostly on his left leg from his ankle to his knee. “Because of the burn, he missed 21 weeks of work. He was burned by grease.”

The suit states that Rapp visited the Chinese restaurant on Oct. 12, 2010, for his job with Fire Science Techniques. “A restaurant employee turned on the stove or continued to work on the stove that the plaintiff was working above which set the plaintiff on fire,” the lawsuit states.

For more: http://www.dailyherald.com/article/20120912/news/709129713/

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Filed under Fire, Injuries, Insurance, Liability, Management And Ownership, Risk Management, Training

Hospitality Industry Legal Risks: Kansas Hotel Owners Indicted For Hiring "Undocumented Workers And Paying Them In Cash"; Government Seeks "Forfeiture Of Properties"

“…the (hotel owners) are charged with one count of conspiracy to harbor  undocumented workers for personal gain, five counts of harboring  undocumented workers for personal gain and four counts of wire fraud…The government is seeking to forfeit the proceeds of the crimes, including the two hotels the couple own. The government would seize the properties and then sell them, gaining money for taxpayers. The couple failed to pay the government the payroll taxes that they should have…”

The owners of two Kansas City-area Clarion hotels have been indicted on charges of knowingly hiring undocumented workers who were paid less than other employees. Munir Ahmad Chaudary, 51, and his wife, Rhonda R. Bridge, 40, both of Overland Park, own the Clarion Hotel at 7000 W. 108th St. in Overland Park and the Clarion Hotel at 11828 NW Plaza Circle near the Kansas City International Airport.

Both pleaded not guilty on Tuesday. U.S. Attorney Barry Grissom said the grand jury’s indictment alleges Chaudary and Bridge knew they were hiring undocumented workers to serve as housekeepers. This gave them a competitive advantage over law-abiding hotel owners, Grissom said.

“They paid the undocumented workers less and they paid them in cash. Their economic motive was to cut their costs and to get an advantage on other hotels that abided by the law,” Grissom said.

“This prosecution is aimed at unscrupulous employers who are a driving force behind illegal immigration,” Grissom said. “We’re going to go after people who are hiring them.”

The indictment alleges that in December 2011 investigators from DHS Homeland Security Investigations and the Kansas Department of Revenue received information that the two hotels were employing undocumented workers.

Investigators interviewed hotel employees and found out that most of them were illegally in the United States.

In June 2012, an undercover agent took a job as a housekeeper at the Clarion hotel in Overland Park, Grissom said.

The agent made it clear to Chaudary and Bridge when he was hired that he was unlawfully in the United States and had no documents allowing him to be employed, according to the indictment.

For more: http://www.kctv5.com/story/19512719/us-attorney-barry-grissom-holds-news-conference

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

Hospitality Industry Employment Risks: Florida Restaurant Group Faces Lawsuit For "Failing To Pay Minimum Wages" And Forcing Employees To Work "Off-The-Clock" (Video)

The lawsuit accuses the Orlando, Florida-based company of failing to pay federally mandated minimum wages and forcing its waiters and waitresses to work “off-the-clock” before or after their shifts.

[youtube=http://www.youtube.com/watch?v=PoEWJzbMDw0]

The lawsuit accuses the Orlando, Florida-based company of failing to pay federally mandated minimum wages and forcing its waiters and waitresses to work “off-the-clock” before or after their shifts.

Darden Restaurants Inc, best known for its Olive Garden and Red Lobster chains, was hit with a lawsuit in federal court in Miami on Thursday accusing one of the largest U.S. restaurant operators of violating federal labor laws by underpaying workers at its popular eateries across the country.

Filed under the Fair Labor Standards Act, it also claims many Darden employees have failed to receive appropriate overtime wages for work in excess of 40 hours per week.

Only two plaintiffs are named in the 19-page complaint filed on Thursday in U.S. District Court for the Southern District of Florida.

For more:  http://in.reuters.com/article/2012/09/06/usa-darden-lawsuit-idINL2E8K6HAN20120906

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Filed under Employment Practices Liability, Insurance, Labor Issues, Liability, Management And Ownership, Training

Hospitality Industry Legal Risks: Hotel And Restaurant Owners Should Maintain "Employment Practices Liability Insurance" And Institute Complaint Procedures To Reduce Employee Lawsuits

 “…these suits catch employers by surprise since, even if they terminate an employee for a business reason, every separated employee can claim discrimination on the basis of a protected class such as race, gender or sexual orientation…”

Employers who can afford it purchase Employment Practices Liability Insurance (EPLI) to protect their businesses.

In the last three to four years, HR lawsuits have been on the rise, and unfortunately, there does not seem to be any end in sight. The U.S. Department of Labor reports the number of lawsuits related to the Fair Labor Standards Act, alone, increased 35 percent in three years. And this is only one small area that an employer can be sued. The following steps can be taken to minimize lawsuits:

  • Your employee handbook must contain broad and multi-tiered complaint procedures so employees have sufficient recourse when they feel victimized by harassing or discriminating behavior.
  • Provide annual employment law training to all of your supervisors and require them to sign acknowledgments.
  • Educate your employees at the time of hire – during orientation, for instance – about the avenues open to them should they have a problem and need to complain.
  • Most critically, take prompt remedial action when someone complains. In other words, do something about it within 48 hours or less of receiving the complaint. It is best to seek legal advice when such a complaint occurs.

For more:  http://www.floridatrend.com/article/14575/more-employees-are-suing-employers

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Filed under Claims, Insurance, Labor Issues, Liability, Maintenance, Risk Management