1. Chapter 11 Protection of Guests and Their Property

2. Copyright © 2007 by Nelson, a division of Thomson Canada Limited
Summary of Objectives
To determine the liability of innkeepers for guest property and the role of insurance
To examine the law of bailment as it applies to innkeepers
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Introduction
In medieval England, reivers and thieves created a high degree of risk for travellers.
Innkeepers sometimes collaborated in these thefts.
Common law judges consequently imposed on innkeepers absolute liability for the safety of guests and their property.
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4. Absolute Liability Rule
Under common law, if there is an innkeeper-guest relationship, and if the guest suffers a loss, the innkeeper is liable for it.
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5. Absolute Liability Rule 2
When defining an innkeeper-guest relationship, it is important not to confuse the lesser duties owed by a restauranteur and landlord with the absolute liability of an innkeeper.
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6. Exceptions to the Absolute Liability Rule
The innkeeper will not be held absolutely liable if one of the following factors is involved in the guest’s loss:
The guest’s own negligence
Acts of public enemies
Acts of God
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Infra Hospitium
The term infra hospitium
means within or on the premises of the inn
includes a limousine belonging to the inn or engaged by the inn
includes stables, parking lots and garages
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8. Statutory Limitations
Legislation has been enacted to soften the harsh effect of absolute liability on innkeepers.
Liability limits are set by posting a notice to guests as required by statute.
Exceptions to the limit on liability occur upon the default, neglect or wilful act of an innkeeper or the innkeeper’s staff.
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Disclosure of Value
If a guest’s valuables or the amount of money to be stored is excessive, outside storage at a bank may be suggested.
Whether the inn can refuse storage varies among provinces and territories.
A secure vault and adequate insurance are important.
Express deposit is required to create innkeeper liability for valuables stored in a vault.
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Posting Requirements
Innkeepers who fail to abide by the statutory posting of limited liability requirements will not be protected by the statute.
Postings must be conspicuous and must include the amount of the limitation.
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Seller’s Samples
Liability of the innkeeper applies only to personal use items of the guest, unless the guest
notifies the hotel that samples are being brought in, and
provides the value of the samples.
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Equitable Estoppel
An innkeeper will be prevented from relying on the statutory limitation if the innkeeper or an employee assures the guest that
the hotel will be responsible for the full value of an item, or
there is no need to use the vault since the rooms are safe and secure.
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Liened Property
Guest property is liened when
an innkeeper holds the property for non payment of the guest’s account.
But, before the property can be sold, a notice of sale is required to be published in the local newspaper
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Guest’s Conduct
Negligence of a guest with respect to his or her property may reduce or eliminate the innkeeper’s liability.
Failure to provide information at the time of an express deposit may also reduce or negate the liability of the hotel.
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15. Categories of Property Left Behind by a Guest
Lost property – a reasonable attempt to locate the guest must be made using registration card information
Mislaid property – the owner placed the item in a special location, and then forgot it
Abandoned property – the owner has given up ownership of the property
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16. Access to the Guest’s Room
Once a guest occupies a room, there are restrictions upon the rights of others based upon the guest’s
right to privacy, and
right to exclusive use of the room.
Front desk clerks and switchboard operators should not reveal any guest information.
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Insurance
The following types of insurance are recommended for innkeepers:
Fire insurance
Theft insurance
Business interruption insurance
Public liability insurance
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Property of Nonguests
There is no innkeeper-guest duty with respect to the property of nonguests.
The statutory limitation on liability of an innkeeper does not apply.
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Bailment
Bailment is the temporary transfer of possession (not title) of personal property from the bailor to the bailee.
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Elements of Bailment
Bailment applies only to personal property.
The bailor transfers physical possession of the property.
The bailee acknowledges receipt of the property.
There is an express or implied agreement that the property will be returned to the bailor upon request.
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Types of Bailment
Bailment for the sole benefit of the bailor- gratuitous bailment
Bailment for the sole benefit of the bailee
Bailment for hire
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22. Liability in Bailment Cases
The bailor must establish
the property was delivered to the bailee
the bailee accepted it
the property was not returned or was damaged
the bailee breached the duty owed to the bailor
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