Category Archives: Liability

by | July 12, 2010 · 10:48 am

Hospitality Industry “Employee Theft” Risk Management: Hospitality Business Owners Must Amend Employment Manuals To Specifically Prohibit Employee Access To Company Records Once “Employment Ceases”

“…employers should amend their employment manuals to assert that any authorization granted to an employee to access the company’s networks, files or data automatically ceases when the employee has been terminated, tenders a resignation or forms an intent to leave the employer for any reason — irrespective of whether the employer has actually blocked the employee’s access…”

“…employers should make clear in their employment handbooks, manuals and employment agreements that any authorization to access company data is granted only in furtherance of the employer’s business purposes. They should state explicitly that any other access is unauthorized. Such language has been cited by courts in several cases where employer CFAA claims have been allowed…”

“…employers must remain vigilant to retrieve laptop computers from employees immediately after an employee gives notice. They should also immediately change passwords and close remote access upon learning of an employee’s intention to leave the company…”

According to “A Statistical Analysis of Trade Secret Litigation in Federal Courts,” that was recently published in the Gonzaga Law Reform, the number of trade secret cases has grown “exponentially” in recent years. “Most alleged misappropriators are someone the trade secret owner knows,” the authors write. “Specifically, in over 85 percent of cases, the alleged misappropriator was either an employee or business partner.”

Cases of employee-related data theft more than doubled between 2006 and 2008, according to a study conducted by accounting and consulting firm KPMG. Based on its findings, the firm concluded that the number of such incidents is “almost certain” to increase further, especially in a difficult economic environment.

For more:  http://www.hreonline.com/HRE/story.jsp?storyId=475264808

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by | July 9, 2010 · 5:52 am

Hotel Industry Employment Liability: National Labor Relations Board Orders Illinois Hotel To Rehire Employees, Restore Health Insurance Plan And Cease Refusal To Negotiate With Union

The hotel, at 636 S. Michigan Ave., was ordered by the board to offer jobs back to 14 employees who were laid off last month, and provide them with back wages, according to a news release. A board judge also ordered the hotel to restore its 2008-2009 insurance plan and pay employees to compensate for increases to health care costs that were deemed unlawful.

The hotel was also ordered to stop refusing to bargain with the union on the health care package and layoffs, the release said.

The union estimates that the lost earnings and increased benefit costs amounted to at least $250,000, the release said.

For more:   http://cbs2chicago.com/local/blackstone.hotel.union.2.1793955.html

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by | July 7, 2010 · 6:19 am

Hotel Pool Safety Risks: Glass Enclosures Around Hotel Pools Still Deemed Hazardous By FEMA

“…in 2008, FEMA decided that the practice is hazardous, apparently because glass walls could become projectiles in a hurricane. If FEMA doesn’t allow hotels to have indoor pools, Patricia Grand’s president says it would be devastating to the hotel’s winter business. “

All the people who come during the weekends in the wintertime would not come back anymore if they don’t have anywhere to go and have a swimming pool available to them,” said Frans Mustert, Oceana Resorts.

Hotel operators and the Myrtle Beach Area Chamber of Commerce have managed to hold FEMA off for two years while trying to get the agency to change its mind.

Dean said they’ve tried to point out that hotels in other beach cities have similar pool enclosures and they haven’t been targeted by FEMA. That argument didn’t change the agency’s mind. “Everyone we’ve talked to, in Washington and here at home agrees, this makes no sense, we need to get this law changed,” Dean said.

Congress is working on a rewrite of the Flood Insurance Program, to include a change in the pool enclosure law.

For more:   http://www.carolinalive.com/neighborhood/story.aspx?id=479236

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by | July 5, 2010 · 10:42 am

Hotel Industry Theft Risks: Thieves Are Targeting “Unlocked” Vehicles Parked In Secure Parking Areas

According to police, the group had entered a secure parking area and stolen items from at least five vehicles. All of the stolen items were recovered, and police are in the process of identifying all of the victims with the assistance of hotel staff, Kravetz said.

Police allegedly found numerous items which appeared to have been stolen, including iPhones, iPods, bicycling equipment, Mercedes Benz entertainment headphones, phone chargers, and exercise equipment with an estimated value of $2,500.

Four men were arrested at 7:45 a.m. today on suspicion of stealing items from unlocked vehicles at the Montage Resort Laguna, Laguna Beach Police Lt. Jason Kravetz said.

For more:   http://articles.coastlinepilot.com/2010-07-02/news/tn-cpt-0702-burglaries-20100702_1_burglaries-items-officers

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by | July 4, 2010 · 10:30 am

Future Hotel Liability Issues: 3D Televisions Will Begin To Be More Common In Hotel Rooms But Will Bring Health Risks In Form Of Seizures And Headaches Along With Theft Of Glasses

 “…there have been reported issues with 3-D causing seizures and headaches in certain segments of the population—which could be a liability issue for hotels…”

.. if 3-D becomes commonplace in the home, expect hoteliers to feel the pressure to bring it into the guestroom sooner or later.

“There needs to be content and a way for hotels to collect more for investing in these TVs,” said Anthony Fonzo, senior product marketing manager, Philips Hospitality. “The 3-D television sets are a significant additional investment for the hotelier. There are also a number of questions—will guests pay to watch 3-D, be comfortable wearing glasses and will the glasses stay in the rooms or become another item that is frequently stolen?”

“We don’t believe 3-D will be relevant for the high majority of hotel rooms,” said Rick Albert, VP sales, hospitality, Panasonic. “TVs would have to be completely replaced and we just don’t see 3-D as enough of an incentive for a property to spend the dollars to do another compete renovation. Plus, until the cost of glasses comes down, it is far too cost-prohibitive to keep glasses in rooms and to replace them often.”

For more:   http://www.hotelworldnetwork.com/0710design

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by | July 3, 2010 · 5:36 am

Hotel Industry Liability Risks: Is Criminal Danger And Liability Posed By Employing And Housing “Convicted Sex Offenders” At Hotels?

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

When you check into a hotel, you’d never expect they would have a registered sex offender working behing the front desk and making your room key. But that’s just what our investigation found. Here’s Lisa Guererro’s report that raises troubling questions about whether sex offenders should be given jobs that allow them to interact with families and children.

Robert Mitchell worked the overnight shift at the Holiday Inn in Fort Worth, Texas. So you might be surprised to learn this mild mannered desk clerk is a registered sex offender. In 1995, he pleaded guilty to molesting a 10-year-old girl.

And this from a Huntington Beach, CA hotel investigation:

Huntington Beach police said they had a specific reason for targeting the hotel. While residents can research sex offenders near their homes, visitors may be less apt to research offenders at a hotel where they are staying, said police spokesman Lt. Russell Reinhart.

 

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by | July 2, 2010 · 8:47 am

Hotel Industry Fitness Center Risk Management: Hotel Operators Must Keep Detailed Equipment Maintenance Records And Use Caution With Trainers To Limit Injury Liability

What many facility operators fail to realize is that when it comes to defending legal claims, keeping detailed maintenance records for all equipment is just as important as the maintenance itself. “Somebody will get hurt and they’ll say either that the piece of equipment was defective or broken or not maintained well,” says Bradley. “Even if you did do regular maintenance, the question will be, ‘Where are your records showing that?’ If you reply, ‘Well, our records aren’t very good,’ then your case falls apart.”

“…most trainer-related injuries occur during the trainer’s first or second meeting with a new client, when trainers sometimes try to push out-of-shape exercisers beyond their abilities. “There’s a mentality among some people that ‘the more someone pushes me, the better that is,'” Fried says. “You end up with a trainer trying to make a good impression on the client, and they give them a full boot-camp-style treatment, and the client may just not be ready for that.”

Proper risk management in the fitness center begins, but does not end, with an industry-specific insurance plan. “Make sure you’re dealing with a broker who understands the risks that might be facing a health and fitness center,” Bradley says. “I’ve come across numerous cases where people thought they had the right kind of insurance plan, and, lo and behold, there was some kind of strange or vague exclusion in the policy that precluded coverage.”

Unfortunately, even the perfect insurance package can only go so far in protecting fitness facilities if a range of other risk management practices aren’t also in place. “There are enough competent brokers out there who understand the risks specific to the industry and who can sell you the right policy, so most clubs end up fairly well protected,” Bradley says. “But if you don’t do all the little things — like regular equipment maintenance logs — and you get hit and start to lose a couple lawsuits, you may still find a broker to write you a policy, but your premiums are going to be frightening.”

Facility owners may also put too much stock in their waivers, which have been deemed insufficient by some courts in protecting organizations from liability. Bradley notes that waivers remain a state-by-state issue, but says he has noticed a trend in the past three or four years in cases involving health and fitness facilities in which many courts “are finding ways to chip away at, find their way around and invalidate waivers.”

For more:  http://www.athleticbusiness.com/articles/article.aspx?articleid=3579&zoneid=28

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by | June 29, 2010 · 8:08 am

Hotel Pool Safety Legal Risks: Hotel Owners Must “Go Above And Beyond” Pool Safety Standards To Avoid “Negligence Per Se” Lawsuits

“…In a Negligence Per Se case, once the plaintiff demonstrates the defendant failed to comply with an applicable statute, it creates a presumption that the duty was breached.”

“…compliance with…statutory requirements alone may not be sufficient to ward off a lawsuit in the event of a swimming pool-related injury because the Swimming Pool Industry Standards recommend safety precautions that go above and beyond the statutory requirements of the building and/or health codes…”

 For example, depending on the size and configuration of the pool(s), the building and/or health codes of most jurisdictions typically require that, at a minimum, the water depth be indicated by signs that are mounted in the pool deck at specified intervals and on the vertical wall in the tile line. Additionally, if there is no lifeguard on duty, then most jurisdictions require a sign advising swimmers of that fact.

For more:   http://findarticles.com/p/articles/mi_m3072/is_15_224/ai_n48840673/

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by | June 25, 2010 · 5:33 am

Hospitality Industry Employment Risk Management: Costly Immigration-Related Legal Issues Can Be Covered With Employment Practices Liability Insurance Enhancements

With the average defense cost of a single plaintiff suit hovering around $100,000 and the average award at about $500,000 based on lawyers’ anecdotal reports, employment practices liability insurance has become a must-buy policy for most businesses for protection against claims of wrongful termination, sexual harassment, and age and race discrimination.

If the U.S. Immigration and Customs Enforcement opened a costly investigation of your business and employment practices, would the legal costs be covered under your existing employment practices liability insurance policy?

For many companies, the answer is surprisingly no.

When underwritten with the right enhancement, an EPLI policy can also provide valuable protection against immigration-related issues and government inquiries, which have risen dramatically in recent years.

The U.S. Immigration and Customs Enforcement (ICE) reports:

  • Onsite employment eligibility verification (known as I-9 inspections after the I-9 form required for each new employee) more than doubled in 2009 versus the previous year to 1,069 cases. 
  • Notice of Intent to Fine (NIF) cases have also risen substantially, from 32 cases totaling $2.3 million in fines in 2008 to 142 cases totaling $15.8 million in fines in 2009.

For more:   http://www.property-casualty.com/Issues/2010/June-1421-2010/Pages/Employment-Practice-Issues-Surface-As-Immigration-Policy-Debate-Rages-.aspx

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by | June 24, 2010 · 11:39 am

Hotel Internet And Cybercrime Risks: Texas Hotel Management Company Is Targeted By Thieves Who Steal Dozens Of Customer Credit Card Accounts From Accounting System

“…the thieves made off with the credit card information of dozens of customers who ate at various Destination Hotels & Resorts properties, which are located in a total of 15 states…”

The Austin Police Department said thieves hacked intoThe Driskill Hotel management company’s accounting system and stole customer credit card information.

Authorities said they do not yet know exactly how many victims may have been affected, however, locally, police have received about three dozen complaints of fraudulent transactions, averaging $2,000-$3,000 each.

Losses are expected to total hundreds of thousands of dollars.  The United States Secret Service is also investigating.

For more:   http://www.news8austin.com/content/headlines/272023/driskill-hotel-customers-affected-by-credit-card-theft

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