The U.S. Supreme Court in Shute v. Carnival Cruise Lines, 499 U.S. 585 (1991) held the Shutes, who were injured on a Carnival Cruise ship in waters off Mexico, must file suit in Florida pursuant to the forum selection provision printed on the back of their ticket.   The Shutes filed suit in their home state of Washington.  The cruise ship departed from California.  Shute is still one of the most far reaching holdings enforcing adhesion-like forum selection provisions.  The Shutes also had a strong argument that they lacked notice of the forum selection/choice of law provisions.  

For all of you attending Annual Meeting this week – you might want to take a fire extinguisher to the cocktail mixer. Lawyerist.com has an interesting story regarding a lawsuit against the manufacturers of Bacardi 151. It seems that Bacardi’s popularity as a novelty in certain cocktails is contributing to its potential liability. Should the manufacturer be held liable for the tricks of a bartender? Have you had a close call or witnessed a trick like this at a bar? Let us know. In the interim, wear a fire retardant jacket if you are standing to close to the bar.

The recent spate of stage collapses resulting in injuries, death and property destruction highlights an important area of consideration for hospitality providers.  What are the providers duties in terms of guest safety and monitoring external conditions that may alter the usual conditions.  Of course, no hospitality provider wants their guests injured, but how far does their potential liability extend?  Natural disasters and acts of terrorism are frequent exclusions for coverage as well, further complicating this analysis.

To get the most up-to-date information on cutting-edge hospitality topics, look into the Strictly Hospitality Seminar, September 22-23, 2011 in Scottsdale, Arizona.  Download the brochure.

Sometimes in the hospitality industry, you can’t win for trying.  Hilton Hotels is learning this lesson the hard way.  Last week, a former guest commenced a class action suit in federal district court in California against the Hilton hotel group based on the fact that he was charged $.75 for a newspaper he received, but did not request.  The suit alleges that the newspaper charge was fraudulent because it was disclosed in small print on the key-card sleeve, which he admittedly received upon check-in, and because the paper charge was not itemized on his bill at check out.  The plaintiff, Rodney Harmon, asserts claims of Unfair Business Practices, Violation of the Consumer Legal Remedies Act,  and Unjust Enrichment. 

Of course the only winners in the suit, which seeks an injunction, monetary damages and legal fees, are the plaintiff’s attorneys who will seek huge class action counsel fees for a case that involves only nominal damages and questionable liability for the putative class.

It seems quite plausible that Hilton, in an attempt to accommodate guests who did not want a paper, came up with the system of providing a $.75 credit for those guests who affirmatively asked not to receive one.  The deed has not gone unpunished as now Hilton must defend claims that it was intentionally deceiving customers by not itemizing the paper charge bill.   It is these unique issues faced by the Hospitality industry that will be covered in depth at the upcoming Hospitality Seminar, Sept 22-23 in Scottsdale. Download the brochure describing the full breadth of topics covered and sign up today!