Legally Speaking: Cases offer timely reminders for hoteliers

A potpourri of instructive cases presented themselves in the past few months. Here are some highlights.

Dram Shop

After dining and drinking for several hours at defendant hotel, a customer drove a snowmobile into the side of an overpass and died. His blood alcohol content was 0.16 percent. His wife and daughter sued the hotel based on dram shop law. His companions that night and hotel staff all testified he did not appear to be visibly intoxicated. The Dram Shop Act imposes liability where a liquor licensee serves a visibly intoxicated customer. Based on the testimony, the lawsuit was dismissed.

Race Discrimination

A Black hotel security guard sued defendant hotel for discrimination based on race and color. His lawsuit alleged he had been falsely accused of stealing; the white hotel manager called him “loud” and “ghetto;” the manager repeatedly stared at plaintiff; and the chef allowed non-Black employees to eat restaurant food but denied plaintiff. The court dismissed the claim because plaintiff provided no evidence that the conduct was motivated by racial animus. 

Public Safety

Defendant hotel failed to maintain a compliant fire-suppression system. The municipality sued, alleging the property was a nuisance. The case resolved with defendant agreeing to cure the deficiencies by a specified date. However, defendant failed to do so. The court assessed a fine of $79,500.

Union Rights

Unable to reach a collective bargaining agreement with defendant Hilton hotel, a union sought to convince guests to go elsewhere. Targets of the campaign included two groups scheduled to hold conferences at the hotel. Board members received up to four emails and one letter from the union over a six-month period. The communications, which were neither threatening or coercive, stated the union’s grievances and urged conference leaders to relocate. When leafleting, union staffers did not obstruct any entryway and were not menacing. The hotel claimed violation of the National Labor Relations Act. The court dismissed the case, ruling the activity was protected by freedom of speech.

Lessons from these cases: Serve alcohol responsibly. Treat all workers respectfully. Timely comply with all safety regulations. Minimize friction with unions. 

Karen Morris is a lawyer, municipal judge and Distinguished Professor at Monroe Community College in Rochester, N.Y., where she teaches hospitality law.