Protecting Patrons’ Property Chapter 8 Protecting Patrons’ Property Many slides Copyright © 2008 by Delmar Learning

Introduction Hotel guests bring a variety of personal property to hotels Theft issues

Absolute Liability for Guests’ Goods According to common law, hotelkeepers were liable for any loss of guests’ property occurring on hotel premises Doctrine was called absolute or strict liability

Absolute Liability for Guests’ Goods Three exceptions: Loss caused by an act of God Loss caused by a public enemy Negligence by the guest

Prima Facie Liability Rule - Minority View Six states have adopted a rule that modified absolute liability as follows: Hotelkeepers are liable for property laws only if the loss occurs through their negligence If the innkeeper can prove the loss resulted from some other cause

Limited Liability - Modern Limitations to the Absolute Liability Rule Hotel complies with mandated rules Faces only liability of a few hundred dollars, even if items are valued at much more

Limited Liability - Modern Limitations to the Absolute Liability Rule If the innkeeper deviates from requirements of the statute in any manner, common law rule will apply and the innkeeper will have unlimited liability

Florida Law Theft of personal property See Section 509.162(4), Florida Statutes, regarding employee theft http://www.leg.state.fl.us/statutes/index.cfm?mode=View%20Statutes&SubMenu=1&App_mode=Display_Statute&Search_String=509.162&URL=0500-0599/0509/Sections/0509.162.html

Posting Notice of Availability of Safe Posting means displaying a sign that calls attention to the availability of a safe and that states that, by law, the hotel’s liability for valuables is limited Must be posted at the registration desk, on the check-in form, and in guest rooms

Strict Interpretation of Posting Requirements Failure by the hotel to comply strictly with the posting requirements will result in loss of limited liability

Conspicuous Posting Notice must be displayed in such a way that people are likely to see it Must be easily readable

Languages Other Than English If a hotel can anticipate guests who speak languages other than English, it is well-advised to post written notices in other languages as well as English

Clothes and Other Personal Property Hotel liability is limited for clothing, inexpensive watches, sporting equipment, or merchandise samples If loss is due to negligence on the part of the hotel, it will be liable for the full amount of a guest’s loss

Property Not Covered Statutes do not cover all property that might be stolen Applies only to hotel guests, not to non-guests Cars, property of nonguests, and property of restaurant patrons is covered by law of bailments

Estoppel: Loss of Limited Liability Equitable estoppel - legal principle that precludes a person from claiming a right because that person made a false representation to another who relied on the untruthful statement

Hotel’s Negligence Most limiting statutes do not protect an innkeeper in situations where the loss of guests’ property is due to the hotel’s negligence

Comparative Negligence Hotel and guest are both negligent - loss is due to combined negligence Hotel’s liability will be reduced by the percentage of responsibility attributed to the guest

Liability for Guest Property Bailment The delivery of a property item for some purpose With the expressed or implied understanding That the person receiving it will return it in the same or similar condition in which it was received When the purpose has been completed

Bailment (con’t) Bailor Bailee Gratuitous bailment A person who gives property to another in a bailment arrangement Bailee A person who received and holds property in a bailment arrangement Gratuitous bailment A bailment in which there is no payment (consideration) in exchange for the promise to hold the property

Bailment (con’t) Types of Bailments (liability may be different, but…) Bailments that benefit the bailor (repairmen tools) Bailments for the benefit of the bailee (restaurant borrow supplies from another restaurant) Bailments for the benefit of both parties (valet service)

Bailment (con’t) Detained Property Personal property held by a bailee until the bailor makes lawful payment

Bailment http://www.youtube.com/watch?v=HE3On9YVyzU http://www.youtube.com/watch?v=U51qiEXdPpM http://www.youtube.com/watch?v=i5UbII_Q0_c

Property of Unknown Ownership Mislaid Property Personal property put aside on purpose but then forgotten by the rightful owner Manager required to use reasonable care to protect until rightful owner claims At some point ownership may transfer

Property of Unknown Ownership (con’t) Lost Property Personal property inadvertently put aside and then forgotten by the rightful owner Manager has duty to make a reasonable effort to locate rightful owner Time may differ based on the property found http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0705/0705ContentsIndex.html&StatuteYear=2011&Title=%2D%3E2011%2D%3EChapter%20705

Florida Law Unclaimed Property, see Section 509.191, Florida Statutes http://www.leg.state.fl.us/statutes/index.cfm?mode=View%20Statutes&SubMenu=1&App_mode=Display_Statute&Search_String=509.191&URL=0500-0599/0509/Sections/0509.191.html

Property of Unknown Ownership (con’t) Abandoned Property Personal property deliberately put aside by the rightful owner with no intention of returning for it Manager has no obligation for safe keeping or to locate owner Broken items Trash