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

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

3. 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

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

5. 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

6. 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

7. 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

8. Florida Law Theft of personal property
See Section (4), Florida Statutes, regarding employee theft

9. 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

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

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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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)

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

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

23. 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

24. 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

25. Florida Law Unclaimed Property, see Section 509.191, Florida Statutes

26. 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