Category Archives: Risk Management

by | November 14, 2012 · 7:10 am

Hospitality Industry Legal Risks: Kentucky-Based Restaurant Group Faces "Telephone Consumer Protection Act" Class-Action Lawsuit For "Unsolicited Text Message Advertising"

“…each alleged violation of the act, which consists of a brand sending an unsolicited advertisement via phone call or text message without prior consent, carries up to $500 in statutory damages…text messages allegedly were sent to thousands of Papa John’s customers without their consent because OnTime4U obtained the cell phone numbers of customers from the implicated franchisees…”


A U.S. District Court judge in Seattle has certified a class-action lawsuit against Papa John’s International Inc., calling for as much as $250 million in damages for the alleged transmission of 500,000 text messages to consumers who claim they did not consent to receive such texts.

Three named Papa John’s customers and potentially many more are suing the Louisville, Ky.-based operator or franchisor of 4,000 Papa John’s Pizza restaurants for allegedly violating the Telephone Consumer Protection Act.

The lawsuit, first filed in February by Washington state resident Maria Agne, stems from text messages Agne claims she received without her consent in April 2010. The texts, which promoted Papa John’s products and offers, allegedly came from marketing services provider OnTime4U, which had contracted with several Papa John’s franchisees in the Pacific Northwest.

OnTime4U allegedly indicated to the franchisees — who operate as many as 21 Seattle-area units in Rain City’s case and 12 Portland, Ore.-area restaurants in Rose City’s case — that those messages would not be considered spam or violate the TCPA because those customers had previously ordered a pizza from the franchisees, establishing an “existing business relationship,” which exempts calls and texts from oversight of the TCPA.

According to Coughenour’s order, Kevin Sonneborn, franchisee of PJ Sound Pizza LLC, testified that customers were not asked for their permission to send text messages before their phone numbers were given to OnTime4U.

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by | November 13, 2012 · 7:41 am

Hospitality Industry Legal Risks: New Jersey Hotels Sued For "Price Goughing" During Superstorm Sandy; Fines Up To $10,000

“…(the state sued) a Howard Johnson Express in Parsippany…New Jersey law defines price gouging as an “excessive price increase,” or of 10 percent or more, during a declared state of emergency…Businesses sued by the state face penalties of $10,000 for a first offense and $20,000 for a second offense…”

New Jersey accused seven filling stations and a hotel of gouging customers during the state of emergency after Hurricane Sandy by raising prices as much as 59 percent.

The storm last week killed more than 100 people, triggered an almost 14-foot tidal surge, displaced thousands and knocked out power to millions. It crippled mass transit and interrupted supplies of gasoline.

“We warned merchants again and again not to violate the law by taking advantage of people following this catastrophe,” Chiesa said. “The fact that we have these fringe businesses that think that disasters are a profit center is troubling.”

The state Division of Consumer Affairs got 2,000 complaints about price gouging for gasoline, generators, food and lodging, according to Chiesa. About 83 percent involved gas stations, he said. About 4 percent of the state’s 2,400 gas retailers were subject to subpoenas.

For more: http://www.businessweek.com/news/2012-11-09/new-jersey-plans-price-gouging-suits-against-8-businesses

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by | November 12, 2012 · 7:49 am

Hospitality Industry Crime Risks: Florida Restaurant Thieves Steal Safe Containing $35,000 In Cash; Break In Through Wall In Business Next Door

“The burglars got into the restaurant by breaking into a neighboring business and entering through a wall. Once inside the restaurant, they took the safe and the surveillance system…”

Thieves broke into a restaurant on Flagler Street overnight, stealing a safe that contained $35,000 in cash.
According to NBC 6, thieves broke into El Caribe Cafe at 7173 W Flagler Street sometime between midnight and 4 a.m. Monday morning.

About four months ago, thieves broke into the same restaurant, entering through the roof.

Police are investigating the crime, and doubt one thief acted alone. Miami police spokesperson Kenia Reyes confirmed evidence was left at the scene, but is not disclosing what it is at this time.

For more:  http://blogs.miaminewtimes.com/shortorder/2012/11/thieves_steal_35000_in_restaur.php

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by | November 11, 2012 · 7:36 am

Hospitality Industry Fire Risks: New York Restaurant Kitchen Workers Seriously Burned As "Gasoline Stored In Container" Spills And Ignites

“…the sushi chef… had asked a dishwasher to carry a five-gallon soy sauce container filled with gasoline through the kitchen to his car…The gasoline (had been acquired) a day earlier from an acquaintance and had been stored in the restaurant’s basement…as the dishwasher was carrying the gasoline through the kitchen, it spilled and ignited. Another chef was immediately engulfed in fire, receiving first- and second-degree burns to his face, neck, arms and legs before bystanders extinguished the flames…”

A sushi chef has been arrested after a soy sauce container he had filled with gasoline ignited at a restaurant close to Sutton Place in Manhattan, starting a blaze that severely injured three people.

The fire, which occurred about 10 p.m. Friday, raced through the kitchen of Eno Asian Bistro and Lounge on 1066 First Avenue at East 58th Street, the Fire Department said.

A busboy and another woman also sustained second- and third-degree burns to their legs. As of Saturday, the victims were still recovering at NewYork-Presbyterian/Weill Cornell Medical Center.

For more:  http://cityroom.blogs.nytimes.com/2012/11/10/chef-charged-in-fire-at-restaurant/

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by | November 10, 2012 · 7:57 am

Hospitality Industry Employee Risks: California Hotel Settles "Sexual Harassment And Retaliation Lawsuit" With EEOC For $195,000

In 2010, a female employee filed the EEOC charge of discrimination alleging that a male supervisor made sexual comments and referenced an image of a sexual nature.  The female employee further alleged that upon reporting the sexual harassment, the male supervisor retaliated against her by issuing written discipline and treating her differently.

DNC Parks & Resorts at Tenaya, Inc. which operates Tenaya Lodge, a hotel and resort near Yosemite National Park in California, will pay $195,000 and furnish other relief to settle a federal charge of sexual harassment and retaliation filed with the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency announced today.

Following an EEOC investigation, the director of EEOC’s Fresno Local Office determined that there was reasonable cause to believe that the female employee was sexually harassed due to her gender, female, and that she was subjected to retaliation for reporting the harassment, a violation of Title VII of the Civil Rights Act.  The EEOC also found reasonable cause to believe that a class of other female employees was also sexually harassed due to gender.  Tenaya Lodge denied the allegations of sexual harassment and retaliation, and the company did not admit to liability while agreeing to settle the matter.

Following the EEOC’s determination, the EEOC entered into a one-year conciliation agreement with Tenaya Lodge and the female employee in question.  The agreement effectively settles the case administratively, thereby avoiding litigation.  The agreement provides for $100,000 in monetary relief for the female employee who filed the EEOC charge.  An additional $95,000 is designated as a class fund for eligible claimants who also encountered sexual harassment and/or retaliation while working at Tenaya Lodge.

Aside from the monetary relief, Tenaya Lodge will provide equal employment opportunity training for all current employees and, thereafter, for all new hires in the language that the employee understands, along with additional training for managerial and human resources staff on how to deal with discrimination, harassment and retaliation.  Tenaya Lodge also agreed to post a notice about the settlement in English and Spanish; to report future instances of discrimination to the EEOC; and to publicize the settlement via press release.

Workers have the right to report sexual harassment or other forms discrimination on the job without negative repercussions,” said Melissa Barrios, director of the EEOC’s Fresno Local Office.  “We commend Tenaya Lodge for working with the Commission to resolve this matter and for agreeing to implement measures to protect their employees from harassment, discrimination and retaliation.”

For more:  http://www.eeoc.gov/eeoc/newsroom/release/11-7-12.cfm

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by | November 9, 2012 · 6:49 am

Hospitality Industry Crime Risks: Tennessee Hotel Rooms Broken Into By "Convicted Burglar" Using "Chiseled Tip Knife" And Keycards Stolen From Cleaning Carts

“…Police said Brown was carrying seven keycards from several hotels as well as knife with a chiseled tip that could be used to defeat locking mechanisms…He told police he had taken the keys from a cleaning cart…”

Police are investigating whether a man who allegedly broke into a hotel room in downtown Nashville had any involvement in ten other similar hotel burglary since January.

Police said the victims were inside their hotel room on the 13th floor of the Renaissance Hotel when 35-year-old Antoun Brown came in and asked where the ice machine was, and then made his way into the bathroom before leaving.

The victims told police they heard someone messing with their door lock before he came inside.

Hotel security apprehended him on the 4th floor and held him until police arrived to take him into custody.

Brown, who is a convicted burglar, was charged with aggravated burglary and possession of a burglary tool.  His bond was set at $13,000.

For more:  http://www.newschannel5.com/story/20040554/man-allegedly-broke-into-downtown-hotel-room

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by | November 8, 2012 · 11:50 am

Hospitality Industry Safety Risks: California Hotel Evacuated As "Carbon Monoxide" Gases From Malfunctioning Boiler Force Ventilation Of Building

A carbon monoxide alarm forced hundreds of guests out of their hotel rooms overnight at the Embassy Suites in Burlingame, near San Francisco International Airport. The hotel’s emergency alarms started sounding around 1 a.m. Thursday morning.

Ralph Gallegos said he didn’t think much of it at first.”At first I thought someone had tripped the alarm,” he said. “About 15 minutes later the police department came on and said we had to evacuate the building.”

“I got out of bed thinking it was a prank and started looking around for some hoodlums so I could give ’em some grief,” said Jim Heller. “Then I looked out the window and saw first responders waving their flashlights at us, so I decided to evacuate.”

Between 400 and 500 people could be seen wrapped in blankets and curled up on benches outside the hotel, trying to get some sleep as emergency crews went in to test for carbon monoxide.

Investigators traced the poisonous gas to a malfunctioning boiler. Fire crews opened windows and doors in most of the hotel rooms to ventilate the building.

For more:  http://www.nbcbayarea.com/news/Hotel-Evacuated-for-Carbon-Monoxide-Gas-177864481.html

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by | · 7:48 am

Hospitality Industry Property Risks: Iowa Restaurant Fire Burns "Undetected For More Than An Hour"; More Than $450,000 In Damage

Fire fighters crawled through the restaurant and extinguished small fires and burning embers throughout the interior…They spent hours on scene dealing with hot spots in the above-ceiling crawl space and attic of the one-story building…the building didn’t have a sprinkler system and damage is estimated at more than $450,000.

A fire in a Des Moines restaurant likely burned for more than an hour before being detected and it took firefighters several more hours to completely extinguish all the hot spots, officials said. Crews responded to Montana Mike’s, 5030 NE 14th St., around 5:10 a.m. Tuesday to find dark gray smoke from floor to ceiling, fire officials said.

Heavy smoke and heat made seeing initially impossible and limited the use of a thermal imaging camera, officials said.

The fire started in the back of the restaurant, near office equipment, storage and laundry machines, authorities said. The cause is still under investigation.

For more:  http://blogs.desmoinesregister.com/dmr/index.php/2012/11/07/fire-burns-undetected-for-an-hour-at-local-restaraunt/article?nclick_check=1

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by | November 7, 2012 · 7:48 am

Hospitality Industry Security Risks: Florida Hotel And Management Company Ordered To Pay $1.7 Million To Victim Of "Car Jacking" In Parking Lot; "Inadequate Hotel Security And Burned Out Lights In Parking Area"

“…evidence showed “security was present, but spent more time delivering bed items, towels, and bell carts to guests rather than patrolling the exterior of the hotel and serving as a deterrent to crime. The hotel provided a ‘uniformed housekeeper,’ not security…”

In addition, lights that would have illuminated the area where the crime occurred were burned out and hadn’t been replaced for months.

An Orange County jury Friday ordered Hilton Embassy Suites, Interstate Management Company, and SecurAmerica to pay a combined $1.7 million dollars in restitution to Troy Anderson, who was shot in 2008 while parking his car at the Hilton Embassy Suites on Jamaican Court, near International Drive.

Anderson filed a lawsuit in 2009 for the shooting that occurred on the premises of the Hilton Embassy Suites on September 26, 2008, when he was shot multiple times during a car jacking. He sustained serious and life-threatening injuries as a result. (Troy Anderson v. Hilton Hotels, et al., Case No. 2009-CA-040473-O, Fla. 9th Judicial Cir.).

A former Regional Manager, Chuck Klawitter, testified the hotel would “wait until enough lights were burned out to justify getting a ‘hi-light’ to replace the burned out lights.” Klawitter and two other former SecurAmerica employees, Emmanuel Denau, a former Quality Assurance Supervisor, and Rob Wombolt, a former Operations Manager, testified they brought their security concerns to the attention of the hotel and the security company.

Witnesses testified that the area where hotel personnel instructed Mr. Anderson to park his vehicle was “very dark,” even though it was only 50 or 60 feet from the hotel entrance. Crime Scene Investigator (CSI), Gerardo Bloise, Orange County Sheriff’s Department (OCSO), photographed and documented the scene and his photographs confirmed that a critical floodlight intended to illuminate the area where Mr. Anderson parked was not working on the night he was shot. CSI Bloise confirmed in his testimony the area was “very dark.”

Assistant Hotel General Manager, Victor Vergara, claimed and testified at trial, contrary to the evidence, that all the lights were working and the parking lot lighting was “perfect.”

Jurors also learned that a similar strong-armed robbery had occurred in the parking lot of the Embassy Suites ten days prior. Deputy Lourdes Clayton of the OCSO appeared on the scene of the armed robbery ten days earlier and was on the Hilton Embassy Suites’ property for approximately an hour. The hotel and security company denied knowing she was on the property though in following protocol she would have arrived with lights and sirens on as the call was a Code 3 emergency. She also completed an “incident report,” which is a public record and which was brought out in her testimony at trial where she verified she was on the property for “approximately an hour.” The victim who was robbed at gunpoint, 72-year-old Roger Kraft from Ohio, stayed an additional two nights at the hotel, yet the hotel and security company argued he did not tell anyone about being robbed despite the fact his wallet, cash, and credit cards were stolen. Allen told the jury the assertion was “ridiculous.” Mr. Kraft unfortunately passed away a year and a half ago.

For more:  http://news.yahoo.com/orlando-hotel-ordered-pay-1-7-million-dollars-082430903.html;_ylt=A2KJjakMeZpQcGcAaXDQtDMD

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by | November 6, 2012 · 6:56 am

Hospitality Industry Property Risks: Indiana Hotel Fire Caused By "Electrical Malfunction Of Room's Heating Unit"

“…investigators discovered an electrical malfunction in the room’s heating unit…the sprinkler system put the fire out, saving a large portion of the building from catching fire…”

An electrical malfunction forced several occupants of the Fort Wayne Marriott to evacuate after a fire broke out in a second floor room. Fort Wayne firefighters were called to the hotel on East Washington Center Road just after 11:30 Monday night.

According to Fort Wayne Fire Department Battalion Chief Mike Pinkham, the fire was confined to a second floor room on the hotel’s west side.

Fire officials and hotel management didn’t know how many occupants were in that wing of the building, but 12 to 14 rooms were occupied. No one was inside the room where the fire started.

Heavy smoke filled the entire wing on the second floor. Fire alarms sent most occupants outside into frigid temperatures. Pinkham said officers with the Fort Wayne Police Department helped evacuate several occupants while fire crews were arriving.

For more:  http://www.wane.com/dpp/news/local/marriott-hotel-evacuated-after-electrical-fire

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