Exam 3 Ch 7 11 Ch 7 Guests and Other Patrons Who qualifies as a guest Visit must be for the primary purpose for which an inn operates People are not guests unless they require over night accommodations Intent of parties pg 269 Innkeeper guest relationship is contractual Registration at the hotel is not essential for an innkeeper guest relationship to exist Termination of guest innkeeper relationship pg 275 Contracted time for the room has elapsed Bill not paid when due Proper notice is given to vacate the hotel Reasonable time has passed since checkout Bill has been settled and paid Ch 8 Protecting Patrons Property Key Points this chapter discusses the liability of a hotel restaurant when property disappears Hotel Theft Limited Liability Statutes Bailment Hotel Theft pg 282 Guests insurance if guest does have insurance and recovers the loss from the insurance company the hotel is not relieved from liability The insurance company can sue the hotel from the money they paid to the guest Absolute liability has been modified Used to apply to guests property that was infra hospitium or within the in Exceptions to the absolute liability rule pg 283 o Outdated rule of infra hosptium was outdated by 3 exceptions 1 Loss was attributed to what the law call an act of God which includes earthquakes lightning snowstorms tornadoes and floods 2 Loss caused by a public enemy which includes wartime and terrorist activities 3 Negligence by a guest such as leaving luggage unattended in lobby Prima Facie Liability Rule don t need to know if seen on test it is the wrong answer Limiting liability statutes pg 284 Most important to know for the test Statutes mandated for hotels to only face liability of a few hundred dollars even if guests property valued at many thousands of dollars is stolen Statutes adopted by states to protect hotels 1 The hotel must provide a safe for use by guests to protect their property 2 Hotel must post notices announcing to guests the availability of the safes 3 Hotel must post notices announcing that liability for guests property is limited a EX if limited liability is 500 your only getting up to 500 in settlement even if property was valued higher 4 Max recovery allowed for stolen lost property is prescribed by statute and usually substantially less than missing property is valued As discussed in class on pg 289 o Why is the example in paragraph 3 wrong This is should be comparative negligence not contributory negligence as the book states If guests contribute at all they don t receive What property belongs in the safe pg 291 o Not all property brought to a hotel by a guest is appropriate for a safe if diamonds are stolen it must be from the safe or hotel can argue they shouldn t have been left out o Required to be put in safe Money jewels ornaments banknotes bonds negotiable securities precious stones and other articles of similar value A watch is neither a jewel nor an ornament but a time piece o Property not required to be put in a safe such as watches clothes sporting equipment camera does not have unlimited liability Typical limiting statutes restricts a hotel s liability of such items unless caused by negligence of hotel in that case hotel is liable for full amount of guest s loss It is different only in FL In FL statutes relieve hotel from any liability unless hotel was negligent but hotel s liability is limited to 500 o Watch your comments to guests because you could lose benefits of a limiting liability statute If it gets stolen we cover up to 500 o Defense your stopped from over claiming o Doctrine of equitable estoppel a legal principle that precludes a person from claiming a right or benefit because that person made a false representation to another person who relied on the untruthful statement to his detriment Estoppel loss of limited liability pg 295 Bailment pg 304 Bailment a transfer of possession of personal property from one person to another with the understanding that the property will be returned Bailor the person transferring possession of the property Bailee person receiving possession o Bailor gives property to bailee Essential elements of bailment 1 Personal property has to be tangible and moveable cars clothing equipment does not apply to real property land bildings or liquor license Different levels of care pg 306 possession of the personal property must be 2 Delivery of possession transferred to the bailee 3 Acceptance of possession by the bailee possession of the bailed property implied by the bailee to return the bailed good to the bailor 4 Bailment agreement bailee must knowingly accept part of every bailment is an agreement expressed or a Ex go to restaurant and get ticket from valet Ticket is a bailment because they must give it back to you the same way but this does not include a bailment on property inside the car like rings b Ex laundry ticket from hotel laundry service bailee is the hotel o Know 3 types of bailment and level of care you have to give for each one 1 For the sole benefit of the bailor slight degree of care a Ex during a hurricane giving your computers to another hotel outside the line of the storm the second hotel does not charge a fee to protect them 2 For the sole benefit of the bailee great care a Bailor lends property to the bailee and receives nothing in return b Ex restaurant lends serving dishes at no cost to a catering service who is low on plates for a big event 3 Mutual benefit is most common ordinary care a Bailment for hire both parties receive some benefit form the bailment b Ex rental car or tent for a wedding Proof of negligence in bailment cases pg 309 o Bailor need only prove delivery of the bailed property to the bailee acceptance by the bailee and either a failure by the bailee to return the bailed property or return of the property in a damaged condition Items inside bailed property pg 313 o Question is bailee liable when valuable property is located inside the bailed property and its presence is unknown to the bailee o Answer no bailee not liable when presence of valued property is unknown The bailee must knowing except possession of the property o Case pg 314 o Should always have security procedures and protection of key boards Significance of a car key o Proof of bailment of a car was a key given o If you give your key to someone it will be easier to prove Ch 8 Review Pg 324 preventative law tips Instruct employees about the hotels limiting liability and the importance of them not overstating that