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The Global
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By Julia L. Rider, September 2004
Since the specter of terrorist activity has risen in our collective consciousness--and the images of hurricanes Charley and Frances have swept across out television screens--hotel owners and operators worldwide are blowing the dust off of their disaster plans. Whether the cause is terrorists or hurricane, fire, flood, earthquake, or other disaster, the smart money knows that the best time to deal with an emergency is before it happens. Be Prepared Maintain safe conditions. Keeping your premises safe can save lives. It can also help in defending against allegations of negligence should a disaster occur. Consider the lesson of the hotel that let dust and linen accumulate in linen chutes: when the accumulation caused an otherwise containable fire to spread and cause substantial damage, they were held liable. Liability check: In my states, failure to comply with fire or building and safety codes is considered negligent. Test he alarm and emergency communications systems regularly. During an emergency, you must be able to alert your guests, deploy personnel, and summon emergency services quickly. Liability check: For example, checking to see how bad a fire is before calling the fire department may make fighting the fire more difficult and subject the hotel to liability. Keep your emergency plan current. The evacuation guides on the back of hotel room doors do not constitute an �emergency plan.� Your plan should ensure that guests receive adequate warning of an emergency and provide for their effective evacuation. Your plan should provide for ongoing education to employees and for conducting periodic drills to ensure compliance with the plan. Employee training should reflect geographic realities: danger comes in the form of hurricanes in the Caribbean and Southeast, tsunamis in the Pacific Rim, tornados in the Midwest, and earthquakes in California. Liability check: Hotels may be held liable for losses caused by a disaster if they don�t have a plan, if the plan is inadequate, or if they fail to follow the plan. When Disaster Strikes Warn guests of the emergency. You have a duty to warn guests of an emergency: do not delay! Liability check: Hotels can be held liable for a failure to warn guests of an emergency or for an unduly delayed warning. You may not have to physically accompany guests out of the hotel, but you can be held liable if blocked exists or inadequate lighting in halls and stairwells impedes evacuation. Call for medical assistance. Hotels have a legal obligation to call for medical assistance when a guest is seriously ill or suffers serious injury. Liability check: Unnecessary delays in summoning emergency help can subject the hotel to liability. Also keep in mind the hotel that provided a physician�s assistant to treat guests was held liable when the assistant prescribed the wrong medicine resulting in the death of the guest: be wary of providing your own medical care. The Immediate Aftermath If your hotel is safe, don�t raise the rates. If your hotel survives a disaster and other hotels in the vicinity do not survive, the market value of your safe hotel rooms will skyrocket. However, think twice before raising your rates. In Florida, Attorney General Charlie Crist has filed at least two civil complaints against hotels for alleged price gouging an deceptive and unfair trade practices of consumers seeking shelter from Hurricane Charley. Liability check: Hotels may be held liable for price gouging under state law and be ordered to refund the costs of rooms to customers. (In Florida, violators are subject to civil penalties that can total as much as $10,000 per violation in cases involving senior citizens or handicapped persons.) Hotels may also be held liable for deceptive business practices. Demonstrate goodwill. If your hotel is no longer able to house
and provide services to guests after a disaster, it is unlikely you have
a legal obligation to find your guests other housing. Of course, in the
interest of customer relations and goodwill, providing as much service
as possible is the wisest course for those in the hospitality industry.
Julia J. Rider is a senior member of the Global Hospitality Group and a partner in the Litigation Department. She has represented hotels throughout her career in insurance, contract and construction disputes and in one of the largest mass disaster cases ever tried. She also specializes in insurance-related matters as they affect hotel properties. You may reach Julia at 310.201.3527 or at [email protected]. The Global Hospitality Group® is a registered trademark of Jeffer, Mangels, Butler & Marmaro LLP ©2004 Jeffer, Mangels, Butler & Marmaro LLP |
Jeffer, Mangels, Butler & Marmaro LLP web site: http://www.jmbm.com Email Jim Butler at [email protected] Or contact Jim Butler at the Firm Jeffer, Mangels, Butler & Marmaro LLP 1900 Avenue of the Stars Los Angeles, CA 90067 Phone: 310-201-3526 The premier hospitality practice in a full-service law firm |