Showing posts with label hotel liability. Show all posts
Showing posts with label hotel liability. Show all posts

Tuesday, November 27, 2012

CHECKING OUT FOR GOOD: Liability of Hotels for a murdered guest

By Siesta-friendly

Back in November 2009, we talked about the Liabilities of Hotels and Inns and the applicable provisions - Articles 1998-2004 - of the Civil Code. The Civil Code only covers liability for personal effects, not personal security and safety. But at the end of our piece, we mentioned the then recent Court of Appeals decision (affirming the Quezon City Regional Trial Court’s judgment) ordering the Makati Shangri-la hotel to pay actual and compensatory damages, inter alia, to the heirs of a guest who was murdered in the hotel.


Well, the Supreme Court just affirmed said Court of Appeals decision. It is worth noting that for a death which occurred in 1999, the final decision of the Supreme Court came out in 2012, a span of more than eleven (11) years.   Justice here has been long delayed.

The petitioners sought relief before the Supreme Court when the Court of Appeals ruled against them. 

It is interesting to note the main rationale in both courts’ decisions.  The Supreme Court succinctly states its decision in its introductory line[1] -

“The hotel owner is liable for civil damages to the surviving heirs of its hotel guest whom strangers murder inside his hotel room.”

So how could the hotel be liable despite the lack of any legal provision applying squarely to the facts of the case?  Negligence.  And the CA was able to determine that the proximate cause of the victim’s death was the hotel’s, and not the victim’s, negligence.

Let’s read the facts: The Makati Shangri-la’s closed circuit television (CCTV) tapes showed that the victim, Christian Fredrik Harper, “entered his room at 12:14 a.m. of November 6, 1999, and had been followed into the room at 12:17 a.m. by a woman; [and] that another person, a Caucasian male, had entered Harper’s room at 2:48 a.m.; that the woman had left the room at around 5:33 a.m.; and that the Caucasian male had come out at 5:46 a.m.”

Fast forward a few hours later:

“around 11:00 am … a Caucasian male of about 30–32 years in age, 5’4” in height, clad in maroon long sleeves, black denims and black shoes, entered [a jewelry store in] Makati City and expressed interest in purchasing a Cartier lady’s watch valued at P320,000.00 with the use of two Mastercard credit cards and an American Express credit card issued in the name of Harper. But the customer’s difficulty in answering the queries phoned in by a credit card representative sufficiently aroused the suspicion of [the] saleslady … who asked for the customer’s passport upon suggestion of the credit card representative to put the credit cards on hold. Probably sensing trouble for himself, the customer hurriedly left the store, and left the three credit cards and the passport behind.

In the meanwhile, Harper’s family in Norway must have called him at his hotel room to inform him about the attempt to use his American Express card. Not getting any response from the room, his family requested … the Duty Manager of the Shangri-La Hotel, to check on Harper’s room. Alarcon and a security personnel went to [the room] at 11:27 a.m., and were shocked to discover Harper’s lifeless body on the bed.”

On direct examination, the Makati Shangri-la’s then Chief Security Officer stated that “at the time he assumed his position as Chief Security Officer … he noticed that some of the floors of the hotel were being guarded by a few guards, for instance, 3 or 4 floors by one guard only on a roving manner” prompting him to make “a recommendation that the ideal-set up for an effective security should be one guard for every floor, considering that the hotel is L-shaped and the ends of the hallways cannot be seen. At the time he made the recommendation, the same was denied … as the hotel was not doing well and it was not fully booked so the existing security was adequate enough ...”  The “one guard, one floor” policy was put in place only after Harper’s murder. 

Turns out that “the male culprit who entered Christian Harper’s room was never checked by any of the guards when he came inside the hotel.” The guards also said that no one knew “said man entered the hotel and it was only through the monitor that they became aware of his entry. It was even evidenced by the CCTV that before he walked to the room of the late Christian Harper, said male suspect even looked at the monitoring camera. Such act of the man showing wariness, added to the fact that his entry to the hotel was unnoticed, at an unholy hour, should have aroused suspicion on the part of the roving guard in the said floor, had there been any.”

Further, “there were prior incidents that occurred in the hotel which should have forewarned the hotel management of the security lapses of the hotel. As testified to by Col. De Guzman, “there were ‘minor’ incidents” (loss of items) before the happening of the instant case.  The CA noted that the “minor” incidents may be of little significance to the hotel, yet relative to the instant case, it speaks volume [sic]. This should have served as a caveat that the hotel security has lapses.”

Based on the foregoing facts, the Court of Appeals held that the Makati Shangri-la “was negligent in providing adequate security due its guests” and did not exercise “reasonable care to protect its guests from harm and danger by providing sufficient security commensurate to it being one of the finest hotels in the country.”  

The CA stated that “the hotel business like the common carrier’s business is imbued with public interest. Catering to the public, hotelkeepers are bound to provide not only lodging for hotel guests but also security to their persons and belongings. The twin duty constitutes the essence of the business.”

This inadequate security was thus deemed the proximate cause of Harper’s murder as explained by the CA:  

“Proximate cause is defined as that cause, which, in natural and continuous sequence, unbroken by any efficient intervening cause, produces, the injury, and without which the result would not have occurred. More comprehensively, proximate cause is that cause acting first and producing the injury, either immediately or by setting other events in motion, all constituting a natural and continuous chain of events, each having a close causal connection with its immediate predecessor, the final event in the chain immediately effecting the injury as natural and probable result of the cause which first acted, under such circumstances that the person responsible for the first event should, as an ordinarily prudent and intelligent person, have reasonable ground to expect at the moment of his act or default that an injury to some person might probably result therefrom.”

In affirming the CA’s findings and judgment, the Supreme Court further stated that:

“Applying by analogy Article 2000, Article 2001 and Article 2002 of the Civil Code (all of which concerned the hotelkeepers’ degree of care and responsibility as to the personal effects of their guests), we hold that there is much greater reason to apply the same if not greater degree of care and responsibility when the lives and personal safety of their guests are involved. Otherwise, the hotelkeepers would simply stand idly by as strangers have unrestricted access to all the hotel rooms on the pretense of being visitors of the guests, without being held liable should anything untoward· befall the unwary guests. That would be absurd, something that no good law would ever envision.” 

Cost-cutting measures are understandable – even for 5-star hotels - but those that place someone’s personal safety and security at risk are never worth taking. Guests have an expectation that they will find safe repose in such places, and not an eternal one.




[1]  Makati Shangri-La Hotel and Resort, Inc., vs  Harper, et al., G.R. No. 189998, August 29, 2012.

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Tuesday, May 10, 2011

PARK AND PAY: Liability of hotels for guest’s vehicle

By Obiter07

In “DURBAN APARTMENTS CORPORATION doing business under the name and style of City Garden Hotel vs. PIONEER INSURANCE AND SURETY  CORPORATION,” G.R. No. 179419  (January 12, 2011),  the Supreme Court passed upon the liability of hotels for providing valet parking to guests.

This arose after a hotel guest, and Pioneer’s insured, checked into the City Garden hotel in Makati. The hotel’s parking attendant and co-defendant got the keys to the guest’s vehicle and parked it an adjacent lot owned by a third party.  The guest was subsequently awakened so as to be advised that his car had been taken. The guest made the necessary reports and thereafter filed a claim for insurance with Pioneer which paid the same as indemnity for the vehicle’s loss.  Pioneer alleged that the loss was an offshoot of the hotel’s negligence and accordingly filed a claim by means of subrogation, against the hotel and its parking valet. It was established that there was a previous similar incident and yet no “no necessary precautions were taken to prevent its repetition xxx”.  Pioneer argued that the hotel was “was wanting in due diligence in the selection and supervision of its employees particularly its parking valet.”

On a procedural note, Pioneer was allowed to present evidence ex parte in view of the hotel’s failure to file a pre-trial brief and to appear at pre-trial.

The Hotel argued that the insured was not a guest of the hotel but a visitor therein, that its valet did not get his keys but it was the insured who requested him to find a space wherever one was available, that valet parking was provided for convenience of its customers and that it was a special privilege that was given to the insured.  The vehicle was taken without using the key which was even turned over to the owner. Its valet even tried to run after the carnappers to no avail.

 The guest testified that he drove his vehicle in front of the hotel where the parking attendant approached and asked him for his key, and issued a “valet parking customer’s claim stub.”  He then checked in at the hotel with a companion.  At around 1 a.m., he was advised of the carnapping incident.   An adjuster testified that based on his investigation, the hotel would assist guests in parking, and with only 12 parking slots, entered into an agreement with an adjacent bank to use the latter’s space at night. He discovered that a van had been carnapped from the same lot barely a month before.

The lower court ruled in favor of Pioneer and ordered Durban to pay the “sum of P1,163,250.00 with legal interest thereon from July 22, 2003 until the obligation is fully paid and attorney’s fees and litigation expenses amounting to P120,000.00.”   This was affirmed by the Court of Appeals.

The High Court upheld the ruling that the hotel was in “default for failure to appear at the pre-trial conference and to file a pre-trial brief, and thus, correctly allowed respondent to present evidence ex-parte.”  It also affirmed the finding that it was liable for the loss of the vehicle. The procedural aspect will not be dealt with in detail here.

Despite the finding of default, the Supreme Court emphasized that “defendant’s (petitioner’s) preclusion from presenting evidence during trial does not automatically result in a judgment in favor of plaintiff (respondent). The plaintiff must still substantiate the allegations in its complaint.” 

It found that the allegations of Pioneer in the complaint were substantiated, “i.e., a contract of necessary deposit existed between the insured xxx and petitioner. On this score, we find no error in the following disquisition of the appellate court:

[The] records also reveal that upon arrival at the City Garden Hotel, See gave notice to the doorman and parking attendant of the said hotel, x x x Justimbaste, about his Vitara when he entrusted its ignition key to the latter. x x x Justimbaste issued a valet parking customer claim stub to See, parked the Vitara at the Equitable PCI Bank parking area, and placed the ignition key inside a safety key box while See proceeded to the hotel lobby to check in. The Equitable PCI Bank parking area became an annex of City Garden Hotel when the management of the said bank allowed the parking of the vehicles of hotel guests thereat in the evening after banking hours. “
          
Interesting is the finding that the bank’s parking area was deemed an “annex” to the hotel.  A hotel’s use of an adjacent lot appears to subject the same to its control.  

The Court cited Article 1962, in relation to Article 1998, of the Civil Code:
           
“Art. 1962. A deposit is constituted from the moment a person receives a thing belonging to another, with the obligation of safely keeping it and returning the same. If the safekeeping of the thing delivered is not the principal purpose of the contract, there is no deposit but some other contract.

Art. 1998. The deposit of effects made by travelers in hotels or inns shall also be regarded as necessary. The keepers of hotels or inns shall be responsible for them as depositaries, provided that notice was given to them, or to their employees, of the effects brought by the guests and that, on the part of the latter, they take the precautions which said hotel-keepers or their substitutes advised relative to the care and vigilance of their effects.”

The insured deposited the vehicle for safekeeping with the hotel, through its employee.  This employee issued a claim stub to the insured. The contract of deposit was perfected from the delivery of the vehicle, when the keys were handed over to the hotel’s employee, and which he “received with the obligation of safely keeping and returning it.”   

This could conceivably be used as basis for users of mall and other public parking lots to claim indemnity for loss or damage to their vehicles.  It would be interesting to see if the practice of placing disclaimers of liability in the parking stub, as well as in signages, would be upheld by the courts as binding on the users. It does stand to reason that when you are made to park and pay, parking lot providers owe a degree of care to insure your vehicle is kept safe and sound.  And if they fail to adhere to this standard, then they should be sorry they didn’t, as in this case.

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Monday, November 2, 2009

INN AND OUT: Liabilities of Hotels and Inns

By Obiter07

One checks in to hotels, on vacation or on a business trips or on some other less than legal reason. How safe are you and your belongings while you are there? There have been occasions where a guest returns to a room only to have items missing. You may not be aware of it, but there are specific provisions of law governing the liabilities of hotels.

Personal Effects

Under the New Civil Code, hotels are supposed to be responsible for all personal effects brought in by their guests. However, the guest should give notice of the effects, and take the precautions that may be advised:

“ARTICLE 1998. The deposit of effects made by travellers in hotels or inns shall also be regarded as necessary. The keepers of hotels or inns shall be responsible for them as depositaries[1], provided that notice was given to them, or to their employees, of the effects brought by the guests and that, on the part of the latter, they take the precautions which said hotel-keepers or their substitutes advised relative to the care and vigilance of their effects. (1783)”

There is no need for an actual “deposit” as the responsibility covers all effects brought into the hotel [Padilla, Civil Code Annotated, Vol. VI, (1987), p. 604 citing De los Santos vs. Tan Khey].

Apart from your personal effects, vehicles, articles and even animals are supposed to be kept safe. The lone ranger’s horse, if he’s a hotel guest, should be safe as well too. The law seems dated and looks back to a bygone era of horse-drawn carriages and buggies (or perhaps merely lifted from US law):

“ARTICLE 1999. The hotel-keeper is liable for the vehicles, animals and articles which have been introduced or placed in the annexes of the hotel. (n)”

The hotel’s responsibility extends to losses caused by its personnel and even by third parties but stops at force majeure.

“ARTICLE 2000. The responsibility referred to in the two preceding articles shall include the loss of, or injury to the personal property of the guests caused by the servants or employees of the keepers of hotels or inns as well as strangers; but not that which may proceed from any force majeure. The fact that travellers are constrained to rely on the vigilance of the keeper of the hotels or inns shall be considered in determining the degree of care required of him. (1784a)”

However, there is a distinction between a robber who uses force or who surreptitiously commits robbery. The former is to be deemed force majeure and the hotel is freed from liability.

“ARTICLE 2001. The act of a thief or robber, who has entered the hotel is not deemed force majeure, unless it is done with the use of arms or through an irresistible force. (n)”

But if the guest himself, his servants or his own visitors or the character of thing causes the loss, then the hotel has no liability.

“ARTICLE 2002. The hotel-keeper is not liable for compensation if the loss is due to the acts of the guest, his family, servants or visitors, or if the loss arises from the character of the things brought into the hotel. (n)”

And if some clever hotel owner posts notices that it is not responsible for losses or incorporates this in the agreement for your stay, this will not be effective.

“ARTICLE 2003. The hotel-keeper cannot free himself from responsibility by posting notices to the effect that he is not liable for the articles brought by the guest. Any stipulation between the hotel-keeper and the guest whereby the responsibility of the former as set forth in Articles 1998 to 2001 is suppressed or diminished shall be void. (n)”

But if you don’t pay your hotel bill, they can keep your things as security.

“ARTICLE 2004. The hotel-keeper has a right to retain the things brought into the hotel by the guest, as a security for credits on account of lodging, and supplies usually furnished to hotel guests. (n)”

It may be hard to imagine, but the necessity of having carpets at a hotel was the subject of an actual case. And the court ruled that the hotel can wax and polish floors without having to install rugs or carpets for the safety of guests while this is ongoing. It took notice that these are “luxurious innovations” that at the time were rarely, if ever used in Philippine houses and buildings [Ibid. p. 603-603 citing Evans vs. Manila Hotel Co., et al., 10 CAR (2s) 878.]. This may not hold true now.

Personal Safety and Security

With respect to your personal safety, what could be the rule? While the law covers effects, the person of the guest is not given similar express protection.

In a more recent case, a hotel has been made to answer for the harm that befell its guest. Court of Appeals held the hotel is responsible for the murder of a guest in his hotel room, on the finding that “it would not have occurred if the hotel had provided adequate security." The hotel was made liable to pay P52M in damages to the heirs of the deceased “who was found dead after being bound, gagged and then robbed in his hotel room xxx.”[2]

There is no hotel room, no matter how luxurious, where one can lose everything or is to die for.



[1] ARTICLE 1972. The depositary is obliged to keep the thing safely and to return it, when required, to the depositor, or to his heirs and successors, or to the person who may have been designated in the contract. His responsibility, with regard to the safekeeping and the loss of the thing, shall be governed by the provisions of Title I of this Book.

If the deposit is gratuitous, this fact shall be taken into account in determining the degree of care that the depositary must observe. (1766a)

[2] Luxury Philippine hotel must pay over guest's murder: court By Agence France-Presse, Updated: 10/27/2009, http://news.ph.msn.com/regional/article.aspx?cp-documentid=3671553


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