Category Archives: Management And Ownership

by | December 29, 2012 · 7:43 am

Hospitality Industry Legal Risks: California Restaurant Chain Sued By Handicapped Woman For ADA Violations; Claims "Severe And Pervasive Accessibility Barriers"

“…(accessibility) barriers include having to cross the drive-through lane to reach the restaurant’s main entrance from the accessible parking area, excessive slopes in the path of travel to that entrance and ordering Hospitality Industry ADA Lawsuitslines too narrow for wheelchair users. The suit also claims wheelchair-using customers can’t reach the drinks and condiments on the service counter or slide the chair under the tabletops to dine…”

A wheelchair-bound woman who has eaten at a Redwood City Taco Bell at least twice a month for several years is suing the company for not complying with handicap access standards, saying she has been left humiliated by having others place her order or only procuring food through the drive-through window.

Susan Seales was part of a decade-old class action lawsuit against Taco Bell in which a federal judge ultimately ordered the upgrade of more than 200 California restaurants. However, in July 2012, the court also decertified the class for damage claims and Seales is now seeking that relief though the San Mateo County Superior Court.

Seales has lumbar stenosis which leaves her unable to walk or stand, according to the lawsuit filed Dec. 27. Between roughly 2002 and now, Seales has visited the Taco Bell at 2693 El Camino Real several times and from 2002 to 2009 dined inside the restaurant twice a month. From 2009 on, though, she has only used the drive-through to buy food which she eats in the parking lot because of the “severe and pervasive” accessibility barriers, the suit states.

Seales’ daughter or another customer would have to place her order as a result, giving her “discomfort, embarrassment and distress.”

For more:  http://www.smdailyjournal.com/article_preview.php?id=1760625&title=Woman%20suing%20Taco%20Bell%20for%20ADA%20issues

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by | December 28, 2012 · 6:50 am

Hospitality Industry Theft Risks: Wisconsin Hotel Manager Charged With Stealing More Than $28,000; Purchased Prepaid Credit And Gift Cards From Company Accounts

A police audit of credit card purchases made by Huff on her company account revealed $19,603 in prepaid Visa and other gift card purchases made at a local grocery store during a six-month period. Investigators also employee theftdiscovered checks Huff wrote for personal use as well as additional credit card purchases for a cellphone, a computer, auto insurance and auto repairs.

A Schofield woman charged with stealing more than $28,000 from two hotels she managed will be sentenced Jan. 10 after reaching a plea deal with prosecutors. Gretchen Huff, 32, was charged in March with embezzlement after investigators discovered thousands of dollars in unauthorized charges to her employer’s credit card for personal purchases. Huff is the former general manager of two Ghidorzi Co. hotels, the Country Inns and Suites in Schofield and the Fairfield Inn and Suites in Weston.

Managers at Ghidorzi Cos. became suspicious of Huff in January after discovering a one-week van rental in August 2011 for $1,029. Police say Huff paid for the rental with a business credit card issued in her name. Huff admitted renting the van to go on vacation with her children in Nebraska and offered to pay back the money. Further investigation by Ghidorzi officials uncovered additional unauthorized charges, including $2,000 for a used car and stereo equipment Huff said she purchased for a boyfriend in Chicago.

For more:  http://www.stevenspointjournal.com/article/20121228/SPJ0101/312280278/Sentencing-set-woman-charged-hotel-thefts?odyssey=mod|newswell|text|FRONTPAGE|s

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by | December 27, 2012 · 10:09 am

Hospitality Industry Legal Risks: Family Of Man Who Died At "After-Hours Party" Files "Wrongful Death" Lawsuit Against Washington Restaurant; Victim Was "Over-Served" Alcohol, Did Not Receive Assistance

“…The injury occurred during an after-hours party hosted by the establishment’s general manager, who allegedly gave Lee liquor and marijuana…(the lawsuit alleges) that the restaurant broke the law by hosting an Alcohol Drink Responsiblyafter-hours party and put Patrick Lee in danger by over-serving him liquor, then failing to summon assistance when he was injured…”

The father of a man who died after allegedly falling and hitting his head during a party at a Puyallup restaurant has filed a wrongful-death lawsuit against the business. Attorneys for David Lee filed the lawsuit on his behalf this month in Pierce County Superior Court.

Lee is the father of Patrick Lee and the representative of the younger man’s estate. He seeks unspecified damages from Mis Tres Amigos, a family-owned Mexican restaurant with locations in Puyallup and Lakewood.

Patrick Lee, 22, died in November 2010 allegedly after becoming extremely intoxicated at the restaurant, the lawsuit states.

Instead of summoning help for Lee, the general manager and one of Lee’s friends “left him in a booth and continued to party,” the lawsuit alleges.

Lee was found the next morning unresponsive and having difficulty breathing. The general manager and Lee’s friend took him to Good Samaritan Hospital in Puyallup. He eventually was transferred to Harborview Medical Center in Seattle, where he was declared brain dead and removed from life support.

Read more here: http://www.thenewstribune.com/2012/12/25/2414300/man-sues-puyallup-eatery-says.html#storylink=cpy

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by | December 26, 2012 · 6:57 am

Hospitality Industry Legal Risks: Workplace Discrimination Lawsuits Increase As Companies Employ "Ethnically Diverse Labor Force"; Hotel Worker Mocked For His "Accent" Awarded $500,000 Settlement

Earlier this year, an Iraqi hotel worker in Phoenix won a $500,000 settlement from the Four Points Sheraton. EEOCHe claimed his co-workers mocked his accent and called him derogatory names. According to the EEOC, the worker’s managers didn’t take his complaints seriously, which made his workplace situation intolerable.

Workplace discrimination complaints based on national origin, including those involving language ability, increased by 76 percent from 1997 to 2011, according to the EEOC. The agency says the trend reflects a more ethnically diverse labor force.

Civil rights advocates say workplaces have become more hostile toward workers who don’t speak perfect English.

“There’s definitely a climate of fear that’s bad for everyone,” John Mejia, legal director for the American Civil Liberties Union (ACLU), told Insurance Journal.

Some workers have won large settlements in accent-related lawsuits.

For more:  http://www.insidecounsel.com/2012/12/26/accent-related-discrimination-suits-on-the-rise-sa

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by | December 25, 2012 · 8:25 am

Hospitality Industry Legal Risks: Oregon Restaurant Employee Awarded $70,000 In "Unlawful Employment Practices" Lawsuit; Woman Claimed Discrimination After Filing For Workers' Compensation

“…the (plaintiff) was placed in a position to work near heat, which caused a re-blistering of the wound, according to the lawsuit…(her) physician contacted the worker’s compensation carrier again to say she was to Hospitality Industry Lawsuitwork on modified duties without exposure to heat, the lawsuit states KFC continued to expose Vargas to heat in the workplace…”

“…her physician instructed her not to return to work because KFC was not able to follow the modified duty requirement. Vargas then told her employer she could not return to work until her burn healed…two days later, KFC terminated her employment, stating that Vargas had resigned…”

A Salem woman was awarded more than $70,000 after a lawsuit she filed against Chick Inc., the Salem company that owns three KFC franchises, for unlawful employment practices. Jurors unanimously found in favor of plaintiff Sarai Vargas, who claimed she was wrongfully discharged and that she experienced discrimination after filing for workers compensation because of a workplace burn. A four-day trial ended Dec. 14.

While wearing protective gloves, Vargas suffered second-degree burns after grease splattered on her right arm as she pulled chicken from the grill oven May 9, 2010, Vargas’ lawyer Larry Linder said.

Vargas was treated by a doctor for the burn and was cleared to return to work on a modified duty, which included light activity with no exposure to heat, Linder said.

For more:  http://www.statesmanjournal.com/article/20121225/NEWS/312250021/Woman-who-took-KFC-court-wins-70-000

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by | December 24, 2012 · 7:32 am

Hospitality Industry Employment Risks: South Carolina Restaurants Ordered To Pay $391,000 In Back Wages To Workers; Servers Paid Below Mandated $2.13 Per Hour And Received Tips Only

“…the restaurants agreed to maintain future compliance with the FLSA by keeping accurate records of employees’ work hours, wages and other required employment information; paying all employees at least the Hospitality Industry Wage and Hour Litigationfederal minimum wage; and providing overtime compensation and informing employees in advance that the tip credit will be used…”

Three restaurants in South Carolina have been ordered to pay $391,000 in back wages to workers, as the result of a Department of Labor investigation. The restaurants, all individually owned branches of the San Jose Mexican restaurant chain, owe 37 employees wages for overtime and minimum wages. The DOL’s Wage and Hour Division also found violations in record-keeping provisions.

Following widespread noncompliance in the state’s restaurant industry, the Wage and Hour Division began a multiyear enforcement initiative. Since 2009, more than $2.5 million has been paid to workers, following 2,500 investigations.

All three of the restaurants failed to properly compensate employees. Servers were paid below the mandated $2.13 per hour and made to rely on tips for pay. Other employees were paid flat salaries below the minimum wage requirements, with no regard to hours worked.

For more:  http://ohsonline.com/articles/2012/12/21/three-restaurants-must-pay-391000-in-employee-back-wages.aspx?admgarea=news

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by | December 23, 2012 · 8:00 am

Hospitality Industry Legal Risks: Connecticut Hotel Guilty In "Wrongful Death" Lawsuit Filed By Family Of Man Killed By Hotel Van; Jury Awards $2.3 Million For Driver's Negligence

The jurors ruled both Coleman and Campos were at fault in the accident. But the jurors said Coleman, and thus LaQuinta as well, were responsible for 58 percent of the negligence and Campos was responsible for 42 Hospitality Industry Lawsuitpercent…the (victim) was found to share some of the negligence probably because “no one can say for sure” if he obeyed a stop sign…the (driver) did not have a stop sign…”

“…The lawsuit also alleged (driver) was using a cellphone in violation of state law…the jurors awarded $1,709,840 in damages to the victim’s estate and $580,000 in damages to the widow…”

The family of Jose Mauricio Campos Thursday won a jury verdict of nearly $2.3 million in a wrongful death lawsuit against a hotel corporation and its employee, the driver of a van that struck Campos. Campos, 52, was riding a bicycle at about 6:45 p.m. Sept. 15, 2008 when he was hit by the van, operated by Robert Edward Coleman, near the intersection of Westfield and Gilbert streets in West Haven.

Coleman was a defendant in the civil suit, along with his employer, LaQuinta Inn and Suites, owned by LQ Management. He and the corporation were found to be equally liable.

Campos, who was not wearing a helmet, was thrown to the pavement by the impact and suffered a serious head injury. He died three days later at Yale-New Haven Hospital after emergency surgery. The plaintiff was his wife, Gregoria Campos of West Haven. The Camposes had three sons, now adults.

For more:  http://nhregister.com/articles/2012/12/22/news/new_haven/doc50d67c73417dd288959464.txt

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by | December 20, 2012 · 9:57 am

Hospitality Industry Property Risks: Minnesota Restaurant Kitchen Fire Results In Extensive Equipment, Inventory And Water Damage

An insurance adjuster was on the site to assess the damage…based on how the bids come in to repair damage and replace equipment and inventory, the determination would be made about fixing and opening again.

Restaurant Fire“…the Red-wood Falls Fire Department called Thursday night to put out the fire and then called back Friday and Saturday to address persistent smoldering… the sprinklers went off water damage also became an issue…three inches of water that had to be removed…”

At 6:30 p.m. this past Thursday, a Christmas party was being held at The Rusty Bucket. About that time Oman noticed something that would dramatically change what she would be doing for the next few months. “I noticed there were flames coming out from behind the broiler,” she said.

After attempts were made to put the fire out with a fire extinguisher, it was determined the fire was not going down.
So, everyone in the facility was sent out of the building, and Oman called 911. Just four days later Oman stood looking at the damage that fire caused to the entire restaurant and bar.

For more:  http://www.redwoodfallsgazette.com/article/20121219/NEWS/121219465/1001/NEWS

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by | December 19, 2012 · 8:48 am

Hospitality Industry Property Risks: West Virginia Restaurant Fire Caused By "Malfunction Of Freezer Compressor Unit"; Court Rules Owners May Not Seek Damages To Rebuild Business

After an investigation, the cause of the fire was found to have been a malfunction of the compressor unit and/or power cord…the plaintiffs claim the freezer was not safe for its intended use and also made claims of Restaurant Firedefective design, breach of implied warranty and negligence.

Porker’s made claims for destroyed property and lost business during restoration, but Goodwin’s Dec. 7 ruling concerned three types of other damages requested. They were the cost to build a new Porker’s, lost franchise and royalties fees and the cost of preparing the franchise agreement…Goodwin wrote Porker’s was harmed by the fire but not destroyed, and the insurance payouts were designed to get business resumed. The company requested $105,935 to rebuild in its lawsuit.

After being told it could not seek damages to rebuild itself, Porker’s Bar-B-Q settled its lawsuit against General Electric and Wal-Mart on the eve of trial. The lawsuit claimed they were responsible for property damages from a fire caused by a freezer GE made and Wal-Mart sold. It was filed in 2011 by Jack Bruer and Pam Napier, the owners of Jack and Pam’s who operated Porker’s, and the settlement was entered 10 days after U.S. District Judge Joseph Goodwin granted the defendants’ motion for summary judgment.

The plaintiffs claimed a General Electric freezer bought three years earlier at a Sam’s Club store caught fire and destroyed the business premises of Porker’s, located in Cross Lanes, on Aug. 19, 2009.

Despite insurance company payouts, Porker’s has been out of operation since the fire. During its years of operation, Porker’s never turned a profit, Goodwin wrote.

“The defendants rightfully point out that the plaintiffs stated in their deposition testimony that Porker’s restaurant closed not because of the fire but because the landlord refused to renew their lease,” Goodwin wrote.

Bruer planned to go back to business after repairs were completed, but they never got the chance. The plaintiffs claim the fire was still the proximate cause of the restaurant because it led to the breakdown in the relationship between them and the landlord.

Goodwin found that a reasonable jury could not agree with that argument.

For more:  http://wvrecord.com/news/256425-bbq-restaurant-settles-case-over-fire

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by | December 18, 2012 · 7:40 am

Hospitality Industry Insurance Risks: Workers' Comp Insurance Fraud Costs Businesses $7.2 Billion Annually

In 2007 State Fund discovered Safehome Inc. was under reporting their employee payroll to avoid paying the proper premium. An audit was completed and indicated that Safehome Inc. had failed to pay the proper workers compensation insurancepremiums for their workers’ compensation policy in the amount of $477,285. Additionally, State Fund determined the business was operating out of its classification, and related payroll was never reported to either State Fund or EDD, according to investigators.

“…the three types of most common workers’ comp fraud – injured worker fraud, provider fraud and premium fraud – haven’t changed much…”

Workers’ compensation fraud costs businesses $7.2 billion annually, roughly a fifth of all workers’ compensation payments, according to the National Insurance Crime Bureau.

In the past, it’s been challenging to prosecute workers’ compensation fraud, but recently passed legislation is making it easier for agencies like State Fund to work together to fight fraud. In June, as a result of a joint task force that included State Fund, more than 100 enforcement actions were taken against companies for failure to comply with state contracting, insurance and payroll requirements.

And earlier this year, State Fund partnered with other agencies on a fraud case that resulted in a conviction with restitution orders to both State Fund and the Employment Development Department.

For more:  http://www.insurancejournal.com/news/west/2012/12/12/273777.htm

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