Tag Archives: Restaurants

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 22, 2013 · 6:49 am

Hospitality Industry Legal Risks: North Carolina Hotel And Restaurant Sued By Woman “Sickened By Salmonella Infection”; Lawsuit Claims Failure To Maintain Sanitary Conditions Of Food

“…(the plaintiff), who claims to have become ill after eating at the hotel restaurant, filed a lawsuit in the Cumberland County Superior Court Salmonella Enteritidisalleging the hotel owners served food that was ‘not fit for human consumption’…she also alleges that the defendant failed to ‘maintain and monitor the sanitary conditions of it’s food, drink, water, premises and employees’…”

A Fayetteville woman is seeking in excess of $10,000 in damages after she claims she became sick after eating at a restaurant at a Holiday Inn. Last week the Cumberland County Department of Public Health alerted the public of a possible salmonella outbreak after dozens of people claimed to have gotten sick after eating at the Holiday Inn Fayetteville – Bordeaux.

The Cumberland County Department of Public Health says at least 70 people have reported signs or symptoms consistent with salmonella infections and five people were hospitalized. Twelve of those who reported symptoms are out of state. All of the people appear to have eaten at the All American Sports Bar and Grill and The Café Bordeaux within the hotel.

Health officials are worried that the outbreak could spread nationwide because the hotel is alongside Interstate 95.

For more:  http://www.wncn.com/story/22309597/woman-files-lawsuit-against-fayetteville-hotel-linked-to-salmonella-outbreak

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by | May 20, 2013 · 6:09 am

Hospitality Industry Health Insurance: Restaurant Chains Considering “Skinny Plans” That Offer “Acceptable Minimum Coverage” Under Federal Health Law; Preventative Services, Annual Doctors’ Visits And Generic Drugs Covered But Surgeries And Hospital Stays Are Not

“…(the “skinny plans”) cover minimal requirements such as preventive services, but often little more…Some of the plans wouldn’t cover surgery, X-rays or prenatal care at all…others will be paired with limited packages to cover additional services,  for instance, $100 a day for a hospital health insurance nationalvisit…Federal officials say this type of plan, in concept, would appear to qualify as acceptable minimum coverage under the law, and let most employers avoid an across-the-workforce $2,000-per-worker penalty for firms that offer nothing. Employers could still face other penalties they anticipate would be far less costly…”

San Antonio-based Bill Miller Bar-B-Q, a 4,200-worker chain, will replace its own mini-med with a new, skinny plan in July and will aim to price the plan at less than $50 a month, about the same as the current policy, said Barbara Newman, the chain’s controller. The new plan will have no dollar limits on benefits, but will cover only preventive services, six annual doctors’ visits and generic drugs. X-rays and tests at a local urgent care chain will also be covered. It wouldn’t cover surgeries or hospital stays.

Because the coverage is limited, workers who need richer benefits can still go to the exchanges, where plans would likely be cheaper than a more robust plan Bill Miller has historically offered to management and that costs more than $200 per month. The chain plans to pay the $3,000 penalty for each worker who gets an exchange-plan subsidy.

But, “those are going to be the people who will be ill and need a more robust plan,” and insuring them directly could cost even more, Ms. Newman said.

Many more workers, she expects, will continue to go without insurance, despite the exchanges and the limited plan. Currently, only one-quarter of workers eligible for the mini-med plan take it. Ms. Newman said, “We really feel like the people who are not taking it now will not take it then.”

Tex-Mex restaurant chain El Fenix also said it would offer limited plans to its 1,200 workers, covering doctors visits, preventive care and drugs, but not hospital stays or surgery. “What our goal was all along was to make [offering coverage] financially palatable for the company as a whole, so we didn’t do damage and have to let people go or slow down our growth,” said Brian Livingston, chief financial officer of Dallas-based Firebird Restaurant Group LLC, owner of El Fenix.

For more:  http://online.wsj.com/article/SB10001424127887324787004578493274030598186.html

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by | May 19, 2013 · 7:27 am

Hospitality Industry Property Risks: Ohio Restaurant Fire Caused By “Outside Propane Smoker Being Too Close To Wall”; Building A “Complete Loss” Estimated At $300,000

“…the fire chief (stated that) a restaurant cook was outside smoking prime rib when a propane fire got too close to the building…The building was Restaurant Firebuilt to code (but) it’s just the nature of the beast…they had a lot of fire moving fast, and it was hard to get to because it was under the roof, and the roof keeps water out like it is supposed to…firefighters said the building is a complete loss, about $300,000…”

A fire in North Ridgeville destroyed a local restaurant Saturday. It happened around 3 p.m. at the Black Dog Pub and Eatery on Sugar Ridge Road. Because of the disaster, the building couldn’t be saved. Crews had to demolish it. Crews with the North Ridgeville Fire Department said it was an accidental fire.

The owner of the restaurant, who didn’t want to be identified, was heartbroken as she looked on while several different agencies sprayed down the building.

“She just put a lot of money into the floors. She just remodeled the place you know. She was doing really good on business. Everything was going great,” said Xevier Neider, who was a chef at Black Dog. “It’s sad that she did a lot here, for it to just go up like that.”

For more:  http://fox8.com/2013/05/18/local-restaurant-catches-fire-with-patrons-inside/

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by | May 18, 2013 · 6:48 am

Hospitality Industry Legal Risks: EEOC Issues Revised Protections Against “Disability Discrimination” Including “Employees With Cancer, Diabetes, Epilepsy And Intellectual Disabilities”

Disability discrimination also occurs when a covered employer or other entity treats an applicant or employee less favorably because she has a history of a disability (such as cancer that is controlled or in remission) or because she is believed to have a physical or mental impairment that EEOCis not transitory (lasting or expected to last six months or less) and minor (even if she does not have such an impairment).

The law requires an employer to provide reasonable accommodation to an employee or job applicant with a disability, unless doing so would cause significant difficulty or expense for the employer (“undue hardship”).

The law also protects people from discrimination based on their relationship with a person with a disability (even if they do not themselves have a disability). For example, it is illegal to discriminate against an employee because her husband has a disability.

The U.S. Equal Employment Opportunity Commission (EEOC) today issued four revised documents on protection against disability discrimination, pursuant to the goal of the agency’s Strategic Plan to provide up-to-date guidance on the requirements of antidiscrimination laws.

The documents address how the Americans with Disabilities Act (ADA) applies to applicants and employees with cancer, diabetes, epilepsy, and intellectual disabilities. These documents are available on the agency’s website at “Disability Discrimination, The Question and Answer Series,” http://www.eeoc.gov/laws/types/disability.cfm.

“Nearly 34 million Americans have been diagnosed with cancer, diabetes, or epilepsy, and more than 2 million have an intellectual disability,” said EEOC Chair Jacqueline A. Berrien. “Many of them are looking for jobs or are already in the workplace. While there is a considerable amount of general information available about the ADA, the EEOC often is asked questions about how the ADA applies to these conditions.”

In plain, easy-to-understand language, the revised documents reflect the changes to the definition of disability made by the ADA Amendments Act (ADAAA) that make it easier to conclude that individuals with a wide range of impairments, including cancer, diabetes, epilepsy, and intellectual disabilities, are protected by the ADA. Each of the documents also answers questions about topics such as: when an employer may obtain medical information from applicants and employees; what types of reasonable accommodations individuals with these particular disabilities might need; how an employer should handle safety concerns; and what an employer should do to prevent and correct disability-based harassment.

For more:  http://www.eeoc.gov/eeoc/newsroom/release/5-15-13.cfm

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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 15, 2013 · 5:44 am

Hospitality Industry Technology Solutions: Hotel And Restaurant “Integrated Ordering Systems” Feature Online Tablets Located On Tables; Increase In Productivity, Inventory Control And Customer Satisfaction

“…By eliminating the traditional step of taking down orders with pen and paper, the hotel has been able to cut down manpower needs Hotel Restaurant Online Tablet Ordering Systemby one staff member per shift (reducing walking time)…”

  • The new system also removes the extra time taken to check the availability of certain items with the kitchen
  • Customer satisfaction has climbed by five percentage points since the system was implemented
  • The new format of ordering allowed us to provide personalized service to patrons who needed it more
  • Sales of food at the atrium lounge have gone up since the automated ordering system was implemented
  • The system also allows guests to give instant feedback about the service, with comments popping up on the employees’ phones.

An initiative that was implemented last November involved linking the hotel’s atrium lounge to a full integrated ordering system. Unlike other restaurants and cafes, where tablet computers are used as electronic menus or ordering devices, the hotel goes one step further. Information is keyed in by patrons and sent via the tablets to mobile phones which are carried by all service staff.

“Guests can self-order and customise their meals by looking through the menu and browsing through the pictures,” said Mr Wehinger. “With the tablet, they can press a ‘call for service’ button, type out dietary restrictions, give feedback and view the inventory level of items which are selling fast or out of stock.

“Instead of waving their hands in the air to get the attention of a waiter, a pop-up with the corresponding table number will appear on the mobile phones issued to our staff. They will then attend to the guests’ needs.”

The atrium lounge, which is manned by about seven employees during the evening peak period, takes up much of the hotel’s fourth floor and spans an area about as large as two basketball courts, so cutting down walking time is a key improvement.

For more:  http://www.asiaone.com/News/Latest%2BNews/Relax/Story/A1Story20130515-422603.html

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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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by | May 8, 2013 · 6:10 am

Hospitality Industry Health Risks: Nevada Restaurant Sued After “Salmonella Food Poisoning” Outbreak; “Inadequate Hand Washing, Handling Of Food With Bare Hands, Improper Food Storage” Violations Found

“…health inspectors were sent to the restaurant to investigate…they found multiple violations including: employees handling ready-to-eat food with bare hands, inadequate hand washing by foodhandlers; inadequate or missing cooling and heating logs for food; raw ground beef stored Salmonella Enteritidisover cooked chicken and raw seafood; fruit flies and small moths in the cooking area; and broken cooking thermometers and foods not being held at proper temperatures…”

A Pennsylvania woman has filed a lawsuit against the Firefly on Paradise, a Las Vegas restaurant. She is seeking compensation for allegedly contracting Salmonella food poisoning from the restaurant. She is being represented by Fred Pritzker, Brendan Flaherty and Ryan Osterholm, who are also representing several other people allegedly sickened in the outbreak.  Pritzker, Flaherty and Osterholm are part of PritzkerOlsen law firm’s Bad Bug Law Team.

The firm’s client is one of the 89 people sickened in a Salmonella outbreak associated with the Firefly. She and her husband were visiting Las Vegas in late April. On April 24, they ate dinner at Firefly on Paradise. Two days later, she developed symptoms that included nausea, fever, abdominal cramps and bloody diarrhea. She is still receiving medical treatment.

According to the complaint, those foods include but are not limited to: pork, calamari, garlic in oil, potatoes, tortilla empanada, lettuce, shrimp, mussels, claims, chicken and fish. The restaurant has been closed during the outbreak investigation to reduce the risk to public health.

For more:  http://foodpoisoningbulletin.com/2013/salmonella-lawyers-file-lawsuit-against-firefly-restaurant-in-las-vegas/

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