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COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. Hotel, Restaurant, and Travel Law: A Preventive Approach, Seventh Edition Chapter 9 Rights of Innkeepers

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Page 1: COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED. Hotel, Restaurant, and Travel Law: A Preventive Approach, Seventh Edition Chapter 9 Rights of

COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Hotel, Restaurant, and Travel Law:A Preventive Approach, Seventh Edition

Chapter 9Rights of Innkeepers

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Introduction Patrons are the lifeblood of hotels and

restaurants

Unruly or belligerent customers can

Interfere with the enjoyment of other patrons Damage the reputation of the business

Hotels and restaurants may not want to serve such people

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Right to Exclude Nonguests Innkeepers and restaurateurs extend an

implied invitation to all, including nonguests, to enter their facility

Public’s presence on the premises does not constitute trespass

Trespass—legal wrong consisting of entering or remaining unlawfully on a premises

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Right to Exclude Nonguests (continued)

Implied license for nonguests can be revoked by the innkeeper at any time

Persons entering a hotel who are not guests and do not intend to contract for a room are required to leave the premises if asked

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Right to Exclude Nonguests (continued)

Person who has been requested to leave and fails to do so becomes a trespasser

Operator may use reasonable force to evict a trespasser—only after being asked and trespasser refuses

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Right to Exclude Nonguests (continued)

Only amount of force that is reasonably necessary to remove trespasser is permitted

More force than is reasonably necessary is considered excessive force and may be grounds for a lawsuit

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Right to Exclude Nonguests (continued)

Best practice (if time permits) is to call the police

Officers are trained how to effectuate the removal of a troublesome patron

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Refusing Lodging to a Would-Be Guest

A hotel cannot refuse accommodations to anyone seeking them if rooms are available

True regardless of the time of the guest’s arrival

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Refusing Lodging to a Would-Be Guest (continued)

Exceptions:

Hotel has no vacancies

No vacancies can exist even if rooms are unoccupied

Being painted, refurbished, repaired Being held for reservations

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Refusing Lodging to a Would-Be Guest (continued)

Exceptions: (continued)

Can refuse persons who are:

Criminals Intoxicated Disorderly Unclean and unkempt Suffering from contagious disease

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Refusing Lodging to a Would-Be Guest Cont’d.

Exceptions: (continued)

Persons of bad reputation

Persons not able or willing to pay in advance a reasonable price for a room

Persons with: Firearms or explosives Pets (excluding service animals)

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Consequences of Wrongful Refusal

Excluded guests can sue for damages

May include additional expenses of staying at another hotel

If refusal is based on race, religion, sex, or disability Hotel must pay fine for wrongful exclusion in

addition to damages Remedy under civil rights law would bar further

discrimination

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Age Not a protected class in places of

public accommodation

Restaurateurs can refuse to serve a young person

A young person is entitled to hotel accommodations unless an exception applies

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Selecting Accommodations for a Guest

Which room is assigned to a guest has always been the innkeeper’s prerogative

A hotel might be well-advised to accommodate guest preferences

Guests have no legal recourse if denied their preference

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Changing a Guest’s Accommodation

Not good policy to change a room or move a guest’s possessions without notice or permission

Should be avoided unless reasons are compelling

Inform guest of impending change and provide an explanation

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Entering a Guest’s Room Innkeeper may enter only for

reasonable purposes:

Normal maintenance and repair

Imminent danger

Nonpayment

When entry is requested by the guest

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Entering a Guest’s Room (continued)

Emergency conditions impose a duty to enter a guest’s room to eliminate the danger

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Evicting a Guest

Innkeeper has the right to withdraw hotel privileges and evict a guest

No more force is used than is necessary

Evict—remove someone from property

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Evicting a Guest (continued)

Grounds for eviction: Failure to pay bill

Overstaying

Persons of ill repute

Intoxication and disorderly conduct

Contagiously ill guests

Breaking house rules

Persons not registered

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Persons without Baggage

Historically, hotels could refuse a room to would-be guests without baggage

Today, absence of luggage does in itself indicate illegal intent

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Business Competitors Cannot be refused for seeking

accommodation

Can be refused for coming to solicit customers

Court order may be obtained to bar competitors from continuing such solicitations

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Process of Eviction Evicting someone for cause is proper

Should be carried out Considerately With no harsh words Force should not be used unless absolutely

necessary

Wrongful eviction can result in liability For physical injuries For mental and emotional distress

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How to Evict

First—inform person he is no longer welcome on the premises and should leave

If he remains—second request should be made

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How to Evict (continued)

If he still refuses to leave

Call the police

Use force

Forceful eviction should always be the last resort

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Verbal Abuse

Defamation—tort of making false and demeaning statements about a person to a third person

Libel—written defamatory statements

Slander—oral defamatory statements

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Evicting a Hotel Tenant

A tenant is considered by law to have a greater interest in the apartment than a guest has in a hotel room

Greater interest prevents a hotel/ landlord from evicting the tenant without a court order

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Refusing a Diner

A restaurant not associated with a hotel has more leeway than a hotel to exclude people

A restaurant has the right to select its customers and to refuse any person

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Statutory Protection for the Hotelkeeper

A hotel lien gives an innkeeper the right to retain the personal property of a nonpaying guest

Fraud statutes authorize innkeepers and restaurateurs to pursue criminal charges against those patrons who receive services but intentionally fail to pay

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Innkeeper’s Lien Lien—security interest in the property of

someone who owes money

Lien entitles creditor to take possession of the debtor’s property, sell it, and apply proceeds to unpaid debt

Many states require the hotel obtain a court ruling that the guest is in fact delinquent

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Applicable Property Most property a guest brings to a hotel is

covered by the lien

Coverage does not extend to a person’s necessary apparel and certain personal jewelry (wedding rings)

Goods of one’s spouse are not subject to lien when indebtedness is solely that of the other spouse

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Applicable Charges Guest room charges

Service charges for delivery of a guest’s baggage to and from the hotel

Valet service

Room service

C.O.D. charges

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Termination of Lien

Lien terminates when bill is paid

Hotelkeeper must then return any property seized pursuant to the lien

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Termination of Lien (continued)

If payment is not paid, the innkeeper can Sell property

Use proceeds to satisfy the bill

Including expenses associated with the sale Advertising

Storage of goods pending sale

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Termination of Lien (continued)

Following sale:

The innkeeper can retain from the proceeds the amount of the unpaid bill and expenses incurred

Any surplus must be paid to the guest

If innkeeper cannot locate the guest, money can be paid to a designated public official

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Not an Exclusive Remedy

The hotelier can also sue the guest for breach of contract

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Defrauding the Hotelkeeper or Restaurateur

All states seek to protect the innkeeper and restaurateur from guests who attempt to defraud by leaving without paying

Many statutes provide varying penalties depending upon the amount and value of the goods/services received by the absconder

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Defrauding the Hotelkeeper or Restaurateur (continued)

Larceny—theft of property

Theft of services—receipt of services without payment

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Intent to Defraud

Criminal cases are different from civil cases

Civil case—plaintiff seeks compensation

Criminal case—penalties can include jail time and resulting loss of freedom

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Intent to Defraud (continued)

To justify penalization requires that the defendant act with a criminal mental state, usually meaning intentionally

A person acts intentionally when his conscious objective is to engage in the illegal conduct

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Intent to Defraud (continued)

To establish a defendant’s guilt of a crime, prosecutor must prove two elements

Defendant obtained food or lodging without paying for it

Defendant intended to avoid payment

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Fraudulent Payment Bad checks

Check for which the maker has insufficient funds

Check written on a closed account

Credit card The person knows is stolen and who

signs the card owner’s name

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Fraudulent Payment (continued)

Criminal possession of stolen property—when a person knowingly possesses stolen property with intent to benefit someone other than the owner

Forgery—unauthorized alteration, completion, or making of a written instrument (check or credit card) with intent to defraud or deceive

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Fraudulent Payment (continued)

A guest who steals property is liable for the crime of larceny

Misdemeanor or felony depending on the state involved and value of goods stolen