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Chapter 11 Protection of Guests and Their Property
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Page 1: Chapter 11 Protection of Guests and Their Property.

Chapter 11 Protection of Guests and Their Property

Page 2: Chapter 11 Protection of Guests and Their Property.

Copyright © 2007 by Nelson, a division of Copyright © 2007 by Nelson, a division of Thomson Canada LimitedThomson Canada Limited

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Summary of Objectives

To determine the liability of To determine the liability of innkeepers for guest property and innkeepers for guest property and the role of insurancethe role of insurance

To examine the law of bailment To examine the law of bailment as it applies to innkeepersas it applies to innkeepers

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Copyright © 2007 by Nelson, a division of Copyright © 2007 by Nelson, a division of Thomson Canada LimitedThomson Canada Limited

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Introduction

In medieval England, reivers and thieves In medieval England, reivers and thieves created a high degree of risk for created a high degree of risk for travellers.travellers.

Innkeepers sometimes collaborated in Innkeepers sometimes collaborated in these thefts.these thefts.

Common law judges consequently Common law judges consequently imposed on innkeepers absolute liability imposed on innkeepers absolute liability for the safety of guests and their for the safety of guests and their property.property.

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Copyright © 2007 by Nelson, a division of Copyright © 2007 by Nelson, a division of Thomson Canada LimitedThomson Canada Limited

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Absolute Liability Rule

Under common law, if there is an Under common law, if there is an innkeeper-guest relationship, and innkeeper-guest relationship, and if the guest suffers a loss, the if the guest suffers a loss, the innkeeper is liable for it.innkeeper is liable for it.

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Copyright © 2007 by Nelson, a division of Copyright © 2007 by Nelson, a division of Thomson Canada LimitedThomson Canada Limited

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Absolute Liability Rule 2 When defining an innkeeper-When defining an innkeeper-

guest relationship, it is important guest relationship, it is important not to confuse the lesser duties not to confuse the lesser duties owed by a restauranteur and owed by a restauranteur and landlord with the absolute liability landlord with the absolute liability of an innkeeper.of an innkeeper.

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Exceptions to theAbsolute Liability Rule The innkeeper will not be held The innkeeper will not be held

absolutely liable if one of the absolutely liable if one of the following factors is involved in the following factors is involved in the guest’s loss:guest’s loss:

• The guest’s own negligenceThe guest’s own negligence

• Acts of public enemiesActs of public enemies

• Acts of GodActs of God

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Infra Hospitium

The term The term infra hospitiuminfra hospitium

• means within or on the premises means within or on the premises of the innof the inn

• includes a limousine belonging to includes a limousine belonging to the inn or engaged by the innthe inn or engaged by the inn

• includes stables, parking lots and includes stables, parking lots and garagesgarages

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Statutory Limitations

Legislation has been enacted to soften Legislation has been enacted to soften the harsh effect of absolute liability on the harsh effect of absolute liability on innkeepers.innkeepers.

Liability limits are set by posting a Liability limits are set by posting a notice to guests as required by statute.notice to guests as required by statute.

Exceptions to the limit on liability occur Exceptions to the limit on liability occur upon the default, neglect or wilful act of upon the default, neglect or wilful act of an innkeeper or the innkeeper’s staff.an innkeeper or the innkeeper’s staff.

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Disclosure of Value

If a guest’s valuables or the amount of If a guest’s valuables or the amount of money to be stored is excessive, outside money to be stored is excessive, outside storage at a bank may be suggested.storage at a bank may be suggested.

Whether the inn can refuse storage varies Whether the inn can refuse storage varies among provinces and territories.among provinces and territories.

A secure vault and adequate insurance are A secure vault and adequate insurance are important.important.

Express deposit is required to create Express deposit is required to create innkeeper liability for valuables stored in a innkeeper liability for valuables stored in a vault.vault.

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Posting Requirements

Innkeepers who fail to abide by Innkeepers who fail to abide by the statutory posting of limited the statutory posting of limited liability requirements will not be liability requirements will not be protected by the statute.protected by the statute.

Postings must be conspicuous Postings must be conspicuous and must include the amount of and must include the amount of the limitation.the limitation.

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Seller’s Samples

Liability of the innkeeper applies Liability of the innkeeper applies only to personal use items of the only to personal use items of the guest, unless the guestguest, unless the guest

• notifies the hotel that samples are notifies the hotel that samples are being brought in, andbeing brought in, and

• provides the value of the samples.provides the value of the samples.

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Equitable Estoppel

An innkeeper will be prevented An innkeeper will be prevented from relying on the statutory from relying on the statutory limitation if the innkeeper or an limitation if the innkeeper or an employee assures the guest thatemployee assures the guest that

• the hotel will be responsible for the the hotel will be responsible for the full value of an item, orfull value of an item, or

• there is no need to use the vault there is no need to use the vault since the rooms are safe and since the rooms are safe and secure.secure.

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Copyright © 2007 by Nelson, a division of Copyright © 2007 by Nelson, a division of Thomson Canada LimitedThomson Canada Limited

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Liened Property

Guest property is liened when Guest property is liened when

• an innkeeper holds the property an innkeeper holds the property for non payment of the guest’s for non payment of the guest’s account.account.

• But, before the property can be But, before the property can be sold, a notice of sale is required to sold, a notice of sale is required to be published in the local be published in the local newspapernewspaper

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Guest’s Conduct

Negligence of a guest with respect Negligence of a guest with respect to his or her property may reduce to his or her property may reduce or eliminate the innkeeper’s or eliminate the innkeeper’s liability.liability.

Failure to provide information at Failure to provide information at the time of an express deposit the time of an express deposit may also reduce or negate the may also reduce or negate the liability of the hotel.liability of the hotel.

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Categories of Property Left Behind by a Guest Lost property – a reasonable attempt Lost property – a reasonable attempt

to locate the guest must be made to locate the guest must be made using registration card informationusing registration card information

Mislaid property – the owner placed Mislaid property – the owner placed the item in a special location, and then the item in a special location, and then forgot itforgot it

Abandoned property – the owner has Abandoned property – the owner has given up ownership of the propertygiven up ownership of the property

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Access to the Guest’s Room Once a guest occupies a room, there Once a guest occupies a room, there

are restrictions upon the rights of are restrictions upon the rights of others based upon the guest’s others based upon the guest’s

• right to privacy, andright to privacy, and

• right to exclusive use of the room.right to exclusive use of the room.

Front desk clerks and switchboardFront desk clerks and switchboard operators should not reveal any operators should not reveal any guest informationguest information..

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Copyright © 2007 by Nelson, a division of Copyright © 2007 by Nelson, a division of Thomson Canada LimitedThomson Canada Limited

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Insurance

The following types of insurance The following types of insurance are recommended for innkeepers:are recommended for innkeepers:

• Fire insuranceFire insurance

• Theft insuranceTheft insurance

• Business interruption insuranceBusiness interruption insurance

• Public liability insurancePublic liability insurance

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Property of Nonguests

There is no innkeeper-guest duty There is no innkeeper-guest duty with respect to the property of with respect to the property of nonguests.nonguests.

The statutory limitation on The statutory limitation on liability of an innkeeper does not liability of an innkeeper does not apply.apply.

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Copyright © 2007 by Nelson, a division of Copyright © 2007 by Nelson, a division of Thomson Canada LimitedThomson Canada Limited

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Bailment

Bailment is the temporary Bailment is the temporary transfer of possession (not title) transfer of possession (not title) of personal property from the of personal property from the bailor to the bailee. bailor to the bailee.

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Copyright © 2007 by Nelson, a division of Copyright © 2007 by Nelson, a division of Thomson Canada LimitedThomson Canada Limited

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Elements of Bailment

Bailment applies only to personal Bailment applies only to personal property.property.

The bailor transfers physical possession The bailor transfers physical possession of the property.of the property.

The bailee acknowledges receipt of the The bailee acknowledges receipt of the property.property.

There is an express or implied There is an express or implied agreement that the property will be agreement that the property will be returned to the bailor upon request.returned to the bailor upon request.

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Types of Bailment

Bailment for the sole benefit of Bailment for the sole benefit of the bailor- gratuitous bailmentthe bailor- gratuitous bailment

Bailment for the sole benefit of Bailment for the sole benefit of the baileethe bailee

Bailment for hireBailment for hire

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Liability in Bailment Cases The bailor must establishThe bailor must establish

• the property was delivered to the the property was delivered to the baileebailee

• the bailee accepted itthe bailee accepted it

• the property was not returned or the property was not returned or was damagedwas damaged

• the bailee breached the duty owed the bailee breached the duty owed to the bailorto the bailor