Tag Archives: Restaurants

Hospitality Industry Property Risks: New Jersey Restaurant Fire Started With “Motor On Top Of Walk-In Cooler”; Floor Collapses And Dining Room Destroyed By Smoke Damage

“…the preliminary investigation indicates the fire might have started with a motor on top of a walk in cooler but this is still under Restaurant Fireinvestigation…the outside structure is still standing but the bar fell into the basement and the dining room was destroyed by smoke damage…”

The Ridgewod Restaurant was severely damaged in an early morning fire, police said. Firefighters and police were called to the restaurant on Brooklyn Stanhope Road at 2:23 a.m. on Saturday by the owners, who said that they had left the business after closing to go out and when they returned they found smoke cinside, according to Lt. Thomas Kmetz, a police department spokesman.

Police arrived to find kitchen door was hot to the touch and they could heard popping noises coming from inside, Kmetz said. The fire department arrived on the scene and found that there was smoke coming out of every possible area of the building that it could get out of, Kmetz said.

Firefighters extinguished the fire but the middle floor where the bar used to be collapsed into the basement and the dining room was destroyed by smoke damage, Kmetz said.

The Hopatcong, Roxbury, Netcong, Mount Arlington and Stanhope fire departments all responded to the blaze.  The restaurant specializes in Portugese and Italian cuisine.

For more:  http://www.dailyrecord.com/article/20130506/NJNEWS/305060057/Hopatcong-restaurant-severely-damaged-fire

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Filed under Fire, Insurance, Liability, Risk Management

Hospitality Industry Legal Risks: New Mexico Restaurant Sued By Family Of Man Killed After “Leaving While Intoxicated”; Lawsuit Claims Corporate Policy Of “Driving Up Liquor Sales”

“…The lawsuit says the restaurant’s employees shouldn’t have served Varela the 20-ounce “Brewtus” beers and should have Alcohol Drink Responsiblystopped him from leaving while intoxicated…It also accused Applebee’s corporate leadership of encouraging its restaurants to drive up liquor sales, especially late at night, a policy it says “created a dangerous situation…”

The estate of a man who was struck and killed by a truck filed a lawsuit against the Taos restaurant that served him several 20-ounce beers, saying he was over served before he walked out of the restaurant and into the street where he was killed. The Albuquerque Journal reports Julian Varela, 49, had a blood alcohol level four times the legal limit for driving when he left the Applebee’s Neighborhood Grill and Bar on Dec. 29, 2011.

He was killed by a teen driver who wasn’t cited in the incident. The lawsuit names the 17-year-old as a defendant, saying he was negligent.

An attorney for Varela’s estate wouldn’t say where they got the internal emails and records those accusations are based on. The lawsuit references police reports from 2008 to 2011 that list 90 incidents, and the chain’s own log entries of gunshots, fights, assaults and other incidents at the restaurant.

It seeks punitive and other damages.

For more:  http://www.azcentral.com/news/free/20130501new-mexico-applebees-sued-over-drunk-pedestrians-death.html

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

Hospitality Industry Insurance Risks: Hotels Must Purchase “Additional Terrorism Clause” To Have Losses Covered When Government Classifies Bombing Incidents “Acts Of Terror”

“…(after September 11 attacks) “acts of terror”  were excluded from (regular insurance) policies. They made it an optional add-on that businesses Acts of Terror Insurance Coveragehad to purchase separately to have damage covered that resulted from officially declared acts of terrorism, meaning the government’s categorization of the incident will determine who pays for what…”

The hotels located on or near Boylston Street are still trying to get their feet back under them after the tragedy in Boston, reeling from the lack of business associated with the incident’s aftermath. Hotels are looking to their insurance companies to cover their losses, but, interestingly enough, the payout depends upon whether or not the government officially declares the marathon bombings an “act of terror.”

 According to ABC News, President Obama called the bombings an “act of terror,” but the treasury secretary, attorney general, and secretary of state have yet to speak on the designation, and have set no time frame in which to do so.

“If there is no terror finding, damages would be covered in general under regular property-and-casualty policies,” Robert Hartwig, president of the trade group Insurance Information Institute, told ABC News. If it’s declared an “act of terror,” however, only those who purchased the additional terrorism clause would have their losses covered by insurance.

For more:  http://www.hotelchatter.com/story/2013/5/2/114339/2751/hotels/%22Terrorism_Insurance%22_a_Hot_Debate_as_Boston_Hotels_Still_Struggle_

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

Hospitality Industry Property Risks: Michigan Restaurant Electrical Fire Caused By “Kitchen Materials Improperly Stored”; Heat Causes Pipes To Burst And Extensive Water Damage

“…the cause was improper storage of materials from the kitchen in an area not intended for storage…the heat caused pipes to burst, so there is Restaurant Firewater and smoke damage to the entire building…Normally the cleanup contractors can get things cleaned up if they can get in there right away, but the major issue will be damage to the electrical system…”

An early morning electrical fire has closed Culver’s restaurant on 9th street for at least a few weeks, general manager Jennie Atteberry said Tuesday morning. Texas Township fire chief Mike Corfman said his department was dispatched at 4:32 a.m. Tuesday when a delivery man noticed a haze at the  restaurant and  called 911.

When firefighters arrived they found heavy smoke coming from the utility room, he said.

It took only 10 minutes to put out the fire, which was contained to the utility room. There were no injuries in the fire.

For more:  http://www.mlive.com/news/kalamazoo/index.ssf/2013/04/electrical_fire_closes_culvert.html

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Filed under Fire, Insurance, Liability, Maintenance, Risk Management

Hospitality Industry Property Risks: Texas Restaurant Is A “Total Loss” After Kitchen Fire Destroys Building; “Old Structure” Was Not Insured

“…No one was injured but the Yum Yums building was a total loss…it was not insured. Fire officials believe the fire sparked in Restaurant Firethe restaurant’s kitchen downstairs, but the exact cause is unknown. The structure is unsafe for fire investigators to go inside, so the department will not be able to determine an exact cause…”

Three people were uninjured following an early morning fire at a downtown Jacksonville restaurant Sunday. At 12:12 a.m., a man who lived in an apartment above Yum Yums Restaurant and Bakery, in the 200 block of South Main Street, woke up to an explosion sound and ran downstairs, said Jacksonville Fire Chief Paul White.

The structure fire was located about a block from the fire station, and firefighters arrived on scene at 12:13 a.m., White said. There was fire at the back of the building and heavy smoke in the front when firefighters arrived, he said. Flames were soon shooting from the roof and out windows.

The fire quickly consumed the old structure, making it unsafe for crews to be the inside the building. Five ladder trucks from numerous departments were on scene to help, White said.

“It was a big fire, and the ladder trucks saved the day,” White said. “It as too dangerous to go inside so it was basically a defensive fire. (firefighters) basically put a lot of water on it.”

For more:  http://www.tylerpaper.com/article/20130428/NEWS01/130429754

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Filed under Fire, Liability, Maintenance, Management And Ownership, Risk Management

Hospitality Industry Property Risks: Illinois Restaurant Limits Floodwater Damage Through Installation Of “Special Flood Prevention Equipment”; $700,000 Cleanup Costs In 2008 Lowered To Under $1000 In 2013

“…special flood prevention equipment (was installed) at the McDonald’s after the 2008 flooding; including shutoff valves for the sewer lines, and Restaurant Flood Risksrubberized door dams… only about a half an inch seepage (from this flood) in the building through penetrations in pipes, and stuff like that, unlike 2008, (when there was) 27 inches…(the owner estimated there was) as much as $700,000 on cleanup from the 2008 flood, but only several hundred dollars this year…”

Two eateries next door to each other in northwest suburban River Grove were in very different stages of cleanup on Tuesday, as flood waters from the Des Plaines River slowly receded. WBBM Newsradio’s Bernie Tafoya reports, next door at the famous Gene and Jude’s Red Hot Stand, a big flood cleanup was underway on Tuesday. Workers were seen donning respirators while cleaning up inside on Tuesday, and tossing out flood-damaged debris, while the McDonald’s next door was getting ready to open for business.

It’s not that the flooding wasn’t as bad at the McDonald’s, it was the result inside the two restaurants.

“It’s money well-invested,” Karayanes said.

For more:  http://chicago.cbslocal.com/2013/04/23/a-tale-of-two-restaurants-flood-damage-varies-depending-on-preparations/

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Filed under Flood Insurance, Maintenance, Management And Ownership, Risk Management

Hospitality Industry Legal Risks: California Restaurant Franchisee Settles EEOC “Disability Discrimination Lawsuit” For $100,000; Former Floor Supervisor With “Intellectual Disability” Demoted To Janitorial Position

“…The EEOC contends that once Alia took over,  Alia management demoted Morgan to a janitorial position, cut his hours and reduced  his hourly EEOCwages, thereby forcing him to find other employment and resign by  June 2009.   The EEOC’s lawsuit argued  that Alia Corporation thus engaged in disability discrimination that violated  the Americans with Disabilities Act  (ADA)…”

Alia Corporation, a franchisee  with over 20 fast-food chain restaurants throughout Central California, agreed  to pay $100,000 to settle a disability discrimination lawsuit filed by the U.S.  Equal Employment Opportunity Commission (EEOC), the federal agency announced  today.

The EEOC originally filed suit against the Merced,  Calif.-based company in 2011 on behalf of Derrick Morgan, a former floor  supervisor with an intellectual disability (EEOC v. Alia Corporation, Case  No. 1:11-cv-01549-LJO-BAM, U.S. District Court, Eastern District of  California).  Morgan was known to be a good employee and  promoted by previous management from crew member to super­visor in 2008.

As  part of the settlement announced today, the parties entered into a three-year  consent decree requiring Alia to hire an equal employment opportunity (EEO) monitor  to create anti-discrimination policies and procedures; a complaint process and  impartial investigations; a centralized tracking system for discrimination  complaints; a system to hold employees accountable for discrimination; and,  annual live disability discrimination training for all management and human  resources employees.  The $100,000 in  monetary relief shall be paid entirely to Morgan.  The EEOC will monitor compliance with the agreement.

“Employers cannot allow biases and stereotypes to factor  into employment decisions,” said Anna Y. Park, regional attorney for the EEOC’s  Los Angeles District Office, which includes Fresno in its jurisdiction.  “The EEOC commends Alia Corporation for  today’s settlement, as it marks a new path for Alia — one which includes equal  employment opportunity for all of their employees, regardless of disabilities.”

Melissa  Barrios, director of the EEOC’s Fresno Local Office, said, “Disability discrimination  charges are on the rise in California, comprising 30% of all charges  filed.  Workers who are unjustly  penalized due to their disabilities have protections under federal law, and the  EEOC is here to help.”

For more:  http://www.eeoc.gov/eeoc/newsroom/release/4-18-13.cfm

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

Hospitality Industry Legal Risks: Pennsylvania Restaurant Franchisee Sued By Manager Who Fractured Ankle After Slipping In Puddle Of Water; Seeking Over $50,000 In Damages

“…The suit alleges that (plaintiff) sustained an ankle fracture that required surgery after she slipped on a puddle of water at the KFC restaurant Hospitality Industry Injury Lawsuitsthat she managed…she sustained the ankle fracture, contusions, abrasions, lacerations and nerve damage, as well as trauma, mental upset, anguish and humiliation…”

A case involving a Philadelphia-area fast food manager who claims she broke her ankle after slipping on a puddle of water at her place of employment may have to proceed in federal, not state court, after defense attorneys filed a motion to transfer the litigation. Nicholas J. Renzi, of Adams Renzi Law in Philadelphia, filed a personal injury complaint at the Philadelphia Court of Common Pleas on April 2 on behalf of his client, city resident Benet Moultrie-Long and her husband, Curtis Long.

On that same day, employees with Temple, Texas-based McLane Foodservice Inc. and McLane Company had delivered frozen items to the fast food restaurant, which is located in Conshohocken, Montgomery County.

This week, attorney Jon Michael Dumont, of the Philadelphia firm Rawle & Henderson, filed a petition with the U.S. District Court in Philadelphia seeking to move the litigation to that venue.

The defense lawyers contend that in reading the plaintiff’s lawsuit, it appears damages would exceed the $50,000 jurisdictional limit at the Court of Common Pleas.

For more:  http://pennrecord.com/news/9790-defense-lawyers-petition-to-remove-kfc-injury-case-to-federal-court

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

Hospitality Industry Theft Risks: Illinois Restaurant Employees Plead Guilty To “Skimming Credit Card Information Of Paying Customers”; Over $200,000 In Fraudulent Purchases Made By Ring Leaders

“…(the ring leader) organized the scheme by paying the defendants, who were employees at the various establishments, to skim credit card information of paying customers using a small credit card reader provided to them by Woods and Washington. The employees swiped identity theftapproximately 175 cards through the readers, enabling Woods to reproduce counterfeit credit cards and allowing Woods, Washington and Alex Houston to rack up thousands of dollars in charges…”

Sentences were handed down against seven defendants who illegally obtained personal banking information from patrons visiting Chicago area restaurants and attractions, including Wrigley Field and the Magnificent Mile’s RL Restaurant, according to Illinois Attorney General Lisa Madigan.

Defendants Joseph Woods, Britain E. Woods, Alex Houston, Jenette Farrar, Essence S. Houston, Kenyetta Davis and William Washington pled guilty and were sentenced for “skimming” personal banking information, which was used to make purchases of more than $200,000. The banking and credit card account information was stolen from customers who patronized Chicago area establishments, including Wrigley Field, RL Restaurant, a Chicago Taco Bell location and a McDonald’s restaurant in Berwyn.

Madigan said financial institutions with accounts that were compromised in the scheme include Chase, U.S. Bank, Citibank, Harris Bank, American Express, Bank of America and Fifth Third Bank. The banks assisted in the investigation and notified victims to secure their personal information.

Madigan said identity theft is a significant threat to Illinois consumers. Last year, more than 2,500 identity theft complaints were filed with her office’s Consumer Fraud Bureau. Consumers reported incidents of fraudulent charges on their existing accounts, thieves opening new accounts in their names (including credit card, utility and cell phone accounts) and instances of bank fraud, such as stolen checks or fraudulent withdrawals made to a victim’s bank account.

For more:  http://www.claimsjournal.com/news/midwest/2013/04/18/227236.htm

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Filed under Crime, Guest Issues, Labor Issues, Liability, Management And Ownership, Risk Management, Theft

Hospitality Industry Legal Risks: Hotel And Restaurant Hiring Policies Must Be Neutral On Employee “Sex Stereoyping”; EEOC To Enforce “Broad Definition Of Sex Discrimination”

The EEOC Title VII effort to protect LGBT (Lesbian, Gay, Bisexual and Transgender) workers relies on a broad definition of sex discrimination, treating harassment and discrimination claims under a “sex stereotyping” theory…The EEOC’s new emphasis on LGBT protections will shape its EEOCfuture en­­force­­ment and litigation against private employers, especially in states that don’t protect gender identity or sexual orientation. Expect the EEOC to educate the LGBT community about its recent rulings. Also expect more charges and more vigorous investigations…Make sure your policies are neutral with regard to sexual orientation, gender identity and expression, and prohibit harassment based on sexual preference, gender stereotypes or intolerance.

Federal law doesn’t prohibit discrimination against lesbian, gay, bisexual and transgender (LGBT) workers. Instead, LGBT protections are a varied patchwork of judicial and agency interpretations and state and local laws that make discrimination actionable only under specific circumstances. LGBT workers continue to face employment discrimination with relatively few legal protections.

In response, the EEOC has begun an effort to protect LGBT workers’ rights by broadly interpreting Title VII of the Civil Rights Act of 1964. The EEOC’s newly released Strategic Enforcement Plan for 2013-2016 lists “coverage of lesbian, gay, bisexual and transgender individuals under Title VII” as one of its top six national en­­forcement priorities. Expect the EEOC to take significant enforcement actions soon and litigate issues more aggressively.

No national law explicitly bans workplace discrimination based on sexual orientation or gender identity. Title VII’s language only protects individuals on the basis of “race, color, religion, sex, or natural origin.” LGBT advocates have tried to amend Title VII to add sexual orientation, expression and identity, but have consistently failed.

For more:  http://www.businessmanagementdaily.com/35121/eeoc-steps-up-efforts-to-protect-against-lgbt-bias-harassment

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