Tag Archives: Lawsuits

Hospitality Industry Legal Risks: Illinois Hotel Sued For $250,000 For "Bed Bug Infestation" During 2010 Stay; Violation Of "Consumer Fraud And Deceptive Practices Act" Alleged

The suit claims hotel employees did not warn guests of the bugs before they stayed in the hotel from March 19, 2010 through May 21, 2010, according to court documents.

A couple from Nashville, Tennessee is suing an O’Fallon hotel for more than $250,000 following an alleged infestation of bed bugs during their stay. The hotel’s attorneys are fighting to dismiss the case and the hotel manager says bed bugs are not a problem.

Antwaine and Woodrow Ross allege the Days Inn O’Fallon hotel knew the critters Cinex lectularius, commonly known as bed bugs due to their tendency to be found in bedding, infested their rooms.

The Rosses seek more than $50,000 from each of five counts, which include claims the hotel violated the Consumer Fraud and Deceptive Practices Act by concealing the infestation. Days Inn attorneys have filed a motion to dismiss four of the five counts claiming in part that the Rosses “misapprehend what constitutes a nuisance and a concurrent suit to stop an alleged nuisance” and they fail to show the Days Inn acted with “deliberate intention to harm.”

To prevent bed bug issues, the hotel states a program was instituted in 2010 that included:
• purchasing special box spring covers designed for bed bugs at a cost of $2,600 a piece,
• treating each with room approved anti-bed bug powder every three days,
• any room suspected of having bed bugs is locked down for three days and professionally treated,
• increasing the frequency of routine monthly extermination services,
• inspecting 5 to 10 rooms at random during each extermination service and providing a report to management, and
• cleaning each headboard with bleach.

Read more here: http://www.bnd.com/2012/05/10/2171520/days-inn-ofallon-sued-following.html#storylink=cpy

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Filed under Guest Issues, Health, Insurance, Liability, Maintenance, Management And Ownership

Hospitality Industry Legal Risks: Texas Hotel Sued By Former Conference Meetings Director For "Employment Discrimination"; Woman Claims Termination Due To Cancer Diagnosis

“…(the Texas woman) believes Crowne Plaza Hotel fired her because of insurance, knowing she had more follow-up surgeries required…(she) is now cancer free and has a new job, hopes to collect financial damages for medical bills and mental anguish…”

A Texas grandmother of five says she was wrongfully fired from her job because she got cancer. Now, she’s suing for employment discrimination.

Janet Hustus, 53, was working as the Conference Meetings Director for Crowne Plaza Houston in January 2011 when she was diagnosed with breast cancer. “I was devastated. When you hear those words it is very devastating,” Hustus said. “You have cancer, and you don’t know what to do. You have so many emotions.”

She went to her general manager a few days later to discuss her schedule and surgery dates. Hustus says Mathers assured her the company would work around her schedule and “support her any way possible,” including keeping her job open for her.

For more: http://abcnews.go.com/Business/texas-grandma-fired-cancer/story?id=16304786

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

Hospitality Industry Legal Risks: "Americans With Disabilities Act" (ADA) "Website Accessibility" Lawsuits Will Force Hotels To Update Websites To Service Disabled Guests

“…Charles Schwab… announced last week that they settled a year-long claim by a blind customer that its website was inaccessible to blind, low vision and cognitively challenged customers….”

 Not only does your website need to comply with the substantive requirements for listing hotel accessible features, for example, but the website itself needs to be accessible to disabled customers.

You need to ask yourself some questions. For example:

  • What standards of accessibility is your website hosting?
  • How do you measure website compliance?
  • How often do you audit your website for ADA compliance?

Charles Schwab joins a list of 15 prominent companies which have settled website accessibility complaints. Charles Schwab agreed that it will make its website more accessible and inclusive for all customers, and agreed to implement the Web Content Accessibility Guidelines (WCAG) Version 2.0 Level AA which will make its website navigable by disabled customers.

An informal complaint backed by the threat of litigation and administrative investigations was lodged with Charles Schwab by the lawyer for a blind day trader. The claimant was a long-time Schwab customer and herself a computer programmer. One morning, she found that she could no longer navigate the Schwab website using JAWS software and was prevented from making trades on-line. The

The Department of Justice (DOJ) has not approved and adopted any formal standards for website accessibility and recently withdrew its Notice of Proposed Rule Making for web access standards. The Web Accessibility Initiative (WAI) has been working for years and has promulgated the WCAG which is widely recognized as the “gold standard” for web access. However, given the almost daily changes in technology and the complexities of cyberspace, there are no official website standards.

Most recent DOJ investigations and settlements have focused on website accessibility. Target Corp. recently paid over $6 million to settle a website ADA class action.

For more:  http://hotellaw.jmbm.com/2012/05/ada_compliance_-_charles_schwab_settlement.html

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Filed under Guest Issues, Legislation, Liability, Maintenance, Management And Ownership, Technology, Training

Hospitality Industry Legal Risks: California Restaurant Found "40% Liable" In $2.5 Million Jury Award To Woman Who Had "Chicken Bone" Stuck In Her Throat While Eating

“…In a verdict delivered April 26 in Contra Costa County, a jury determined Foster Farms, which supplied the poultry for the chicken strips on the pizza, was 60 percent liable for her injuries and Pizza Bytes, which runs several Round Table restaurants in the San Francisco area, was 40 percent responsible…”

A California jury has ordered a poultry producer and a pizza restaurant franchisee to pay $2.5 million to a woman who got a chicken bone stuck in her throat. Calla Felicity, 59, told the Contra Costa Times damage from the bone has turned her from a healthy woman to someone who becomes completely exhausted after walking two blocks. She said she spent 33 days in the hospital immediately after the injury in 2010 with 11 operations and has been back in the hospital several times.

Felicity was eating a barbecued chicken pizza with her mother at a Round Table restaurant in South San Francisco when the bone got stuck.

Read more: http://www.upi.com/Top_News/US/2012/05/04/Woman-awarded-25M-for-chicken-bone/UPI-68391336149120/#ixzz1tvRtzM61

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

Hospitality Industry Health Risks: $6 Million "Negligence Lawsuit" Filed Against Maryland Hotel After "Legionnaires' Disease" Outbreak Confirmed In Water System

“…The lawsuit seeks damages of $6 million dollars, $5 million for negligence and $1 million for loss of consortium…”

“…The Virginia resident who filed the claim reportedly spent 6 weeks in the hospital suffering a number of severe medical conditions and that cost hundreds of thousands of dollars in medical bills…”

The Maryland Department of Health and Mental Hygiene announced the illnesses in October 2011, which occurred after the individuals stayed at an Ocean City hotel. The hotel was later closed for several days to perform tests on the water systems to try and locate the bacteria that cause the disease.  Earlier this month, it was reported that one of those who contracted Legionnaires’ disease while staying at the hotel has filed a lawsuit against the hotel. 

[youtube=http://www.youtube.com/watch?v=HB7g81JxCq0]

  • Each year, between 8,000 and 18,000 people are hospitalized with Legionnaires’ disease in the U.S.
  • It is believed that many infections are not diagnosed or reported, so this number may be significantly higher.
  • More cases are usually found in the summer and early fall, but it can occur any time of year.
  • “Legionnaires’ disease is caused by Legionella bacteria,”
  • “Legionella bacteria can sometimes be found in manmade environments that contain warm water. 
  • These may include hot tubs, cooling towers, hot water tanks, large plumbing systems, or parts of the air-conditioning systems in large buildings. 
  • Proactive testing for Legionella can help prevent outbreaks of the disease. 
  • If an outbreak has occurred, testing for the bacteria can pinpoint sources of the potentially deadly pathogen to prevent further illnesses,”

For more:  http://www.environmental-expert.com/news/victim-of-legionnaires-disease-files-lawsuit-against-maryland-hotel-292018

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

Hospitality Industry Flood Risks: Tennessee Hotel Owners Sue Federal Government For "Negligence" In Managing Spillway Resulting In "100-Year Flood" Levels Two Years Ago

Gaylord wants $250 million for damages to its Gaylord Opryland Hotel and the Grand Ole Opry House

 “…the Corps opened the spillway at Old Hickory Dam…the discharges were so high they caused the Cumberland River to rise above the 100-year flood plain and cause all this damage…”

Gaylord Entertainment plans to file a lawsuit today against the federal government, alleging U.S. Army Corps of Engineers and National Weather Service negligence led to major damage to its luxury hotel during the Cumberland River flood two years ago.

The suit will contend that the Corps was negligent in opening the spillway at the Old Hickory Dam on May 2, 2010, and the Weather Service failed to notify the public that water levels would reach the 100-year flood levels that devastated homes and businesses.

Gaylord and A.O. Smith filed initial claims with the Corps and the Weather Service for compensation in October, a requirement under the 1946 Federal Tort Claims Act, which governs how legal action can be filed against the federal government.

Once the two agencies rejected the Gaylord and A.O. Smith claims, the companies were free to file a lawsuit but had to endure a six-month waiting period.

For more:  http://www.tennessean.com/article/20120430/BUSINESS01/304300044/Gaylord-to-sue-Corps-over-2010-flooding

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

Hospitality Industry Health Risks: Two Wisconsin Women File "Salmonella Sushi Lawsuit" After Eating Sushi Rolls At Local Restaurant; Any Party In "Chain Of Distribution" Potentially Liable Under Product Liability Laws

Food-poisoning cases like the Salmonella sushi lawsuit generally fall under product liability laws. Any party in the product’s chain of distribution — including manufacturers, retailers, and middlemen — can potentially be held liable, depending on the source of contamination.

“…distributors may have removed the packaging before selling it to restaurants, which may not know they’re serving a potentially contaminated product, the Wisconsin victims’ lawyer told MSNBC…”

In a Salmonella sushi lawsuit filed last week, two Wisconsin women, 22 and 33, claim they were severely sickened after eating tuna sushi rolls at a local restaurant, MSNBC reports. The sushi rolls allegedly contained ground yellowfin tuna with Nakaochi Scrape.

California-based Moon Marine USA has recalled 59,000 pounds of raw, ground yellowfin tuna from India, which was packaged as “Nakaochi Scrape AA” or “AAA.”

But distributors may have removed the packaging before selling it to restaurants, which may not know they’re serving a potentially contaminated product, the Wisconsin victims’ lawyer told MSNBC.

Salmonella infections generally lead to diarrhea, fever, and abdominal cramps within 72 hours, according to the FDA. Victims usually recover after about a week.

But the Wisconsin women’s infections were more severe, and required hospital treatment. One woman was diagnosed with an ulcerated colon, which her personal-injury lawsuit blames on contaminated Nakaochi Scrape.

Scientific tests show the Salmonella sushi victims were sickened by a rare type of bacteria called Salmonella Bareilly, the women’s lawyer said. Investigations are underway to determine where bacteria came from.

For more:  http://www.reuters.com/article/2012/04/25/tagblogsfindlawcom2012-injured-idUS319130664220120425

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

Hospitality Industry Employment Risks: Federal Lawsuit Alleges Miami Employment Agency Forced Thrity "H-2B Status" Guest Workers To Do Unsanctioned Work As Housekeepers At Florida Hotels

According to the lawsuit, thirty guest workers were brought to Miami by Villanueva, purportedly to work at the W South Beach as housekeepers for $8.28 an hour.

“…(plaintiff) had many of the workers do unsanctioned work for less than minimum wage. He charged the workers “security deposits” ranging from 50,000 to 100,000 Filipino pesos– or $1,200 to $2,350– which they would lose if they quit those jobs. He crowded the workers in housing Florida and New Jersey, “on floors, air mattresses, and in hallways”, according to the suit, and in “beds infested with bedbugs.”

According to a new federal lawsuit, the Filipino worker who changed your sheets at W South Beach Hotel, or served you lunch at posh restaurants and country clubs, may have essentially been an indentured servant. Seventeen Filipino immigrants allege that a ring of Miami-based employment agencies charged them outrageous “security deposits,” forced them to work for less than minimum wage and no overtime, and stashed them in overcrowded housing.

In a statement to Riptide, the hotel’s general manager George Cozonis acknowledged that the W had used Villanueva’s workers in the past: “W South Beach does not currently work with Jose Villanueva’s agency, Lincoln Road Employment Advisory Services, to provide staffing to the hotel or any of its affiliated operators. LREAS was used briefly during the opening period of the hotel, but all ties were severed more than 19 months ago.”

Employers such as the W, The Admiral’s Club country club in Jupiter, and the Kiawah Island Club in South Carolina arranged with Villanueva for the workers to immigrate under H-2B status from 2006 to 2009.

For more:  http://blogs.miaminewtimes.com/riptide/2012/04/miami_employment_agencies_supp.php

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

Hospitality Industry Health Risks: Oklahoma Restaurant Chain Faces Multiple Lawsuits After "Salmonella Outbreak"; 68 People Confirmed Infected By Centers For Disease Control (CDC)

 “..(the Plaintiff)..sued the restaurant in February, claiming that she was sick  for two weeks after eating at Taco Bell. She’s seeking more than $75,000 in  damages…”

The Centers for Disease Control said that 68 people — including 16 in Oklahoma  — were infected with salmonella after eating at a “Mexican-style fast-food  restaurant chain.”

Taco Bell is facing a second lawsuit after a Shawnee family said their child  contracted salmonella in Oklahoma. The family said their 9-year-old got sick from eating at the restaurant.  The child spent three days in a hospital with a 105-degree fever, according to  the lawsuit.

A lawsuit filed by a Norman woman who claimed she contracted salmonella  after eating at Taco Bell was transferred to federal court.

In a court filing, Taco Bell denied it was liable for Smith’s illness.  The company asked a federal judge to dismiss it from the lawsuit.
Read more: http://www.koco.com/health/30917551/detail.html#ixzz1t4R5gjdr

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Filed under Food Illnesses, Guest Issues, Health, Insurance, Liability, Management And Ownership, Risk Management

Hospitality Industry Employment Risks: California Supreme Court Ruling Mandates That State's Hotels And Restaurants Need Only Make Employee "Meal And Rest Periods Available"; Not Required To Ensure "Actually Taken"

The Court makes clear the following: “When someone is … employed … for five hours, an employer is put to a choice: it must (1) afford an off duty meal period; (2) consent to a mutually agreed-upon waiver if one hour or less will end the shift; or (3) obtain written agreement to an on duty meal period if circumstances permit. Failure to do one of these will render the employer liable for premium pay.” Brinker, p. 35.

At issue in Brinker Restaurant Corporation v. Superior Court was whether California employers must ensure that their employees actually take their meal and rest periods or merely make them available. To the collective relief of California employers, the court found that an employer must only provide meal and rest periods to its employees, leaving the employees free to use the period for whatever purpose they desire. The employer is not obligated to ensure no work is performed during the period.

The Court continues: “[a]n employer’s duty with respect to meal breaks … is an obligation to provide a meal period to its employees. The employer satisfies this obligation if it relieves its employees of all duty, relinquishes control over their activities and permits them a reasonable opportunity to take an uninterrupted 30-minute break, and does not impede or discourage them from doing so.” Brinker, Slip Opinion, p. 36 (emphasis added).

The Court further acknowledged that what will suffice may vary from industry to industry, but held, “the employer is not obligated to police meal breaks and ensure no work thereafter is performed. Bona fide relief from duty and the relinquishing of control satisfies the employer’s obligations, and work by a relieved employee during a meal break does not thereby place the employer in violation of its obligations and create liability for premium pay.” Brinker, p. 36-7 (emphasis added).

For more: http://hotellaw.jmbm.com/2012/04/brinker_v_superior_court.html

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Filed under Insurance, Labor Issues, Liability, Management And Ownership, Training