Author Archives: Ida

by | August 13, 2012 · 6:24 am

Hospitality Industry Legal Risks: Restaurant Owners Need To Obtain "Product Liability And Completed Operations Insurance" To Cover "Gluten-Free" Menu Items

“…a growing trend toward “gluten-free” menu items at America’s restaurants and catered events is increasing the demand for product liability and completed operations insurance, designed to protect food-service businesses against lawsuits arising from bad reactions to food products…”

The “gluten-free” trend is helping many establishments appeal to millions of Americans who are seeking gluten-free options for a variety of reasons, including gluten sensitivities (claimed by up to 10 percent of Americans, according to the National Institutes of Health) and celiac disease (diagnosed in about 1 percent of the U.S. population, or 3 million people). While offering more options for these customers makes for good public relations, it also opens the door to a new level of potential liability.

While any restaurant could face a lawsuit arising from alleged food poisoning or food allergies, those promising “gluten-free” menu items are at even greater risk of a lawsuit if a customer should choose these options and still have a reaction. Because there are currently no standards that define exactly what constitutes “gluten-free,” some restaurants may be promoting a “gluten-free” product that is prepared in the same area as foods containing gluten, raising the potential for cross-contamination. While many people with sensitivities may not have reactions to small amounts of gluten, others with higher levels of sensitivity could have a severe reaction, raising the potential for lawsuits.

Thankfully, food service businesses — including restaurants, catering businesses, and other food service providers — can protect themselves against the high cost of lawsuits by purchasing a type of insurance known as “product liability and completed operations” coverage. This insurance not only covers lawsuits related to gluten reactions, but also those related to other food allergies, food poisoning, or other injuries or damages caused by the products a restaurant or caterer sells.

For more:  http://www.restaurantnews.com/gluten-free-trend-spurs-demand-for-restaurant-liability-insurance/

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by | August 12, 2012 · 7:05 am

Hospitality Industry Legal Risks: California Hotel Sued By Nine Guests Claiming They Contracted Meningitis From Hotel Pool; Suit Seeks Damages For Premises Liability And Negligence

“…The plaintiffs claim the hotel failed to sanitize the pool, fill it with clean water, use purification chemicals or “obtain proper certification of health & safety codes to reopen pool and water park facilities after pool closure.”

They seek medical costs, damages and punitive damages for premises liability, negligence, gross negligence, public nuisance and loss of consortium.

Nine people claim they contracted meningitis and/or other deadly diseases two years ago from a pool at the Grand Pacific Palisades Resort in Carlsbad. Lead plaintiff Gerald Green claim that during their stay in August 2010 the hotel failed to properly sanitize its family swimming pool. Plaintiff claim that hotel staff told them later that “the pool had been closed due to prior fecal or other form of contamination.”

“Plaintiffs were caused to sustain severe personal injuries, including, but not limited to symptoms of fever, headache, myalgias [muscle pain], vomiting and diarrhea, resulting in diagnoses to include meningitis and aggravated multiple sclerosis,” the complaint states.
Meningitis is a potentially fatal disease caused by inflammation of the protective membranes of the brain and spinal cord. Multiple sclerosis, which causes damage to nerves in the brain and spinal cord, is a debilitating disease with no known cure.

For more:  http://www.courthousenews.com/2012/08/06/49015.htm

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by | August 11, 2012 · 7:24 am

Hospitality Industry Security Risks: Louisiana Hotels' Guest Rooms Burglarized By Thieves Who "Checked For Unlocked Doors"; Suspects Walked Out With Laptops And Electronics

“…(suspects were) walking in the hotel, walking out with the victim’s property…laptops, electronics, iPods, and iPads…cell phones, bags of clothing, jewelry…in some cases thieves got into rooms by checking for unlocked doors…”

After arresting two suspects in a string of downtown hotel burglaries, New Orleans Police confiscated loads of property. Police say rooms at several hotels in the downtown area were burglarized in early July. It was later determined to be the work of the same set of crooks.

“I noticed my door in my room even if I just walk out it doesn’t close,” one hotel guest said. Carroll says an anonymous tip from the public led detectives to arrest this modern day Bonnie and Clyde.

A search warrant executed at her home turned up loads of evidence.

For more:  http://www.abc26.com/news/local/wgno-property-stolen-from-hotels-returned,0,6918670.story

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by | August 10, 2012 · 6:41 am

Hospitality Industry Crime Risks: Wisconsin Hotel Employee Arrested And Charged With 65 Counts Of Credit Card Fraud And Identity Theft

“…(the former employee) used customer credit card numbers to pay tuition and insurance bills. An alert customer notified police and an investigation led to his arrest…”

 A 19-year-old who worked at a hotel in Medford is facing 65 credit card theft charges. He worked at the AmericInn until late last year, and was accused of using the card numbers that hotel guests had put on-file to cover room-expenses. Nicholas Johnson is facing 59 counts of identity theft, and six counts of fraudulently using a credit card for more than $10,000. He’ll be back in court on August 14th.

Police began looking for things in common among several reports of fake credit card charges. They focused on Johnson when several of the card-holders who’d been ripped off had stayed at the same hotel. Johnson hasn’t worked there since late last year.

For more:  http://wsau.com/news/articles/2012/aug/10/hotel-worker-charged-in-credit-card-fraud-scheme/

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by | August 9, 2012 · 6:46 am

Hospitality Industry Insurance Risks: Hotel And Restaurant Owners Face "Greatest Cost Increases" From Healthcare Reform Laws; Must Cover Employees Currently Not Eligible

“…Many retail and hospitality industry employers face a “double whammy” due to the upcoming health care reform law requirements…employers that do not offer qualified coverage face a $2,000 assessment per full-time employee—those working at least 30 hours a week—starting in 2014…”
Employers in the retail and hospitality industries face the greatest cost increases when provisions of the healthcare reform law imposing financial penalties on employers that do not offer qualified coverage go into effect in 2014, according to a survey released Wednesday.Forty-six percent of employers in the retail and hospitality industries and 40% of employers in the health care services industry expect health care cost increases of at least 3% due to health care reform law requirements, according to the Mercer L.L.C. survey of 1,203 employers.

Some will face stiff cost increases as they must extend coverage to employees who are not eligible for coverage currently. In other cases, the coverage they provide, such as through what are known as mini-med plans, will not meet 2014 standards. That includes a ban on annual dollar limits on essential benefits as laid down by the Patient Protection and Affordable Care Act.

Read more: Retail, hospitality industries face big reform costs | Modern Healthcare http://www.modernhealthcare.com/article/20120808/INFO/308089995#ixzz233mGPu1M

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by | August 8, 2012 · 7:09 am

Hospitality Industry Property Risks: Michigan Restaurant "Grease Fire" Spreads Through Vent To Roof, Damaging Building And Other Businesses

“…a vent behind the restaurant was fully engulfed in fire…It went from smelling smoke to the roof being engulfed in flames…”  

A grease fire that started in Hunan House Chinese restaurant destroyed the building and several others in the same strip mall Monday afternoon. There was heavy smoke and visible flames when fire crews arrived on the scene. The roof on Hunan House collapsed shortly after.  Firefighters spent several hours battling the blaze, which also spread to other businesses including Central Barbershop and MetroPCS.

The Central Barbershop owner, Jon Dancer, told The Morning Sun that he was in mid-haircut when his business started smelling like smoke. Ali L. Bazzi said he closed the cellphone store quickly and went outside, where he watched the fire “spread like crazy.”

For more: http://www.mlive.com/news/saginaw/index.ssf/2012/08/grease_fire_that_started_in_mo.html

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by | August 7, 2012 · 6:37 am

Hospitality Industry Theft Risks: Former Pennsylvania Hotel Manager Pleads Guilty To Stealing $52,000 During Two Year Period

He was charged with stealing from the Wingate Inn in Unity Township from April 2007 to August 2009 — which he managed while also serving as mayor — before he left to buy a competing business, the Mountain View Inn.

The former mayor of Latrobe has pleaded guilty to misdemeanor charges that he stole about $52,000 from hotel restaurant where he worked and will serve two years’ probation after paying back the money.

Forty-two-year-old Thomas Marflak was charged by Westmoreland County detectives in September 2010, a few months after finishing a four-year term as the first Republican mayor in Latrobe since 1965.

Marflak has claimed the money he spent using hotel credit cards was for legitimate expenses, not his own use, but pleaded guilty Friday to avoid trial and possible prison time on felony charges.

Read more: http://www.sfgate.com/news/article/Ex-mayor-pleads-guilty-to-theft-from-W-Pa-hotel-3765751.php#ixzz22s3DAuN6

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by | August 6, 2012 · 7:26 am

Hospitality Industry Legal Risks: South Carolina Restaurant Group Pays $1.1 Million To Settle "Alcohol-Related Death" Lawsuit Caused By Assistant Manager

“…the 32-year-old (defendant) has just left his job as an assistant manager at Husk restaurant last December when he rear-ended a car being driven by 32-year-old Quentin Miller on the Ravenel Bridge. Miller died in the fiery wreck, and police say Burnell’s blood-alcohol level was 0.24 percent…”

The parent company of a Charleston restaurant will pay $1.1 million to the family of a man killed in a drunken driving crash that authorities say was caused by one of the restaurant’s employees.

The Post and Courier of Charleston reports the settlement calls for Miller’s parents to get $518,000, Miller’s common-law wife to get $91,500 and the remaining $490,000 to go to attorneys’ fees and costs. The settlement should be finalized at a hearing later this week.

Read more here: http://www.charlotteobserver.com/2012/08/05/3432731/charleston-restaurant-to-pay-1m.html#storylink=cpy

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by | August 5, 2012 · 6:52 am

Hospitality Industry Employee Risks: Kentucky Restaurant Employee Arrested For "Falsely Reporting A Crime" And Stealing Over $500

“…police discovered Dyer took the money and made up the story to cover up the theft…Police arrested Dyer and charged her with falsely reporting an incident and theft by unlawful taking over $500 – a felony charge…”

A local restaurant employee who told police she was robbed at gunpoint Thursday night at work has been arrested for theft and falsely reporting a crime. According to a statement released Friday by Frankfort Police, 28-year-old Amanda Dyer, of Frankfort, reported around 11 p.m. Thursday that she was robbed at gunpoint by a black male while working at the Sonic restaurant on Louisville Road.

Dyer told investigators the man pointed a gun at her when she went outside to take an order, said Maj. Fred Deaton. She told police he threatened to kill her and other customers if she didn’t give him money, Deaton said.

Deaton said police interviewed other employees and customers and found “none of them said anything that helped corroborate her story.”

Dyer was lodged in Franklin County Regional Jail but has since been released.

For more:  http://www.state-journal.com/local%20news/2012/08/03/sonic-employee-accuses-black-man-of-theft

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by | August 4, 2012 · 8:47 am

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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