Chapter 11 – Protection of Guests and Their Property
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Transcript Chapter 11 – Protection of Guests and Their Property
Chapter 11
Protection of Guests
and Their Property
Summary of Objectives
To determine the liability of innkeepers
for guest property and the role of
insurance
To examine the law of bailment as it
applies to innkeepers
Copyright © 2007 by Nelson, a division of
Thomson Canada Limited
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Introduction
In medieval England, reivers and thieves
created a high degree of risk for travellers.
Innkeepers sometimes collaborated in these
thefts.
Common law judges consequently imposed
on innkeepers absolute liability for the
safety of guests and their property.
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Thomson Canada Limited
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Absolute Liability Rule
Under common law, if there is an
innkeeper-guest relationship, and if
the guest suffers a loss, the innkeeper
is liable for it.
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Thomson Canada Limited
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Absolute Liability Rule
2
When defining an innkeeper-guest
relationship, it is important not to
confuse the lesser duties owed by a
restauranteur and landlord with the
absolute liability of an innkeeper.
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Exceptions to the
Absolute Liability Rule
The innkeeper will not be held
absolutely liable if one of the following
factors is involved in the guest’s loss:
• The guest’s own negligence
• Acts of public enemies
• Acts of God
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Infra Hospitium
The term infra hospitium
• means within or on the premises of the
inn
• includes a limousine belonging to the
inn or engaged by the inn
• includes stables, parking lots and
garages
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Statutory Limitations
Legislation has been enacted to soften the
harsh effect of absolute liability on
innkeepers.
Liability limits are set by posting a notice to
guests as required by statute.
Exceptions to the limit on liability occur
upon the default, neglect or wilful act of an
innkeeper or the innkeeper’s staff.
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Disclosure of Value
If a guest’s valuables or the amount of money to be
stored is excessive, outside storage at a bank may
be suggested.
Whether the inn can refuse storage varies among
provinces and territories.
A secure vault and adequate insurance are
important.
Express deposit is required to create innkeeper
liability for valuables stored in a vault.
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Thomson Canada Limited
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Posting Requirements
Innkeepers who fail to abide by the
statutory posting of limited liability
requirements will not be protected by
the statute.
Postings must be conspicuous and
must include the amount of the
limitation.
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Seller’s Samples
Liability of the innkeeper applies only
to personal use items of the guest,
unless the guest
• notifies the hotel that samples are
being brought in, and
• provides the value of the samples.
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Equitable Estoppel
An innkeeper will be prevented from
relying on the statutory limitation if
the innkeeper or an employee assures
the guest that
• the hotel will be responsible for the full
value of an item, or
• there is no need to use the vault since
the rooms are safe and secure.
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Liened Property
Guest property is liened when
• an innkeeper holds the property for non
payment of the guest’s account.
• But, before the property can be sold, a
notice of sale is required to be
published in the local newspaper
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Guest’s Conduct
Negligence of a guest with respect to
his or her property may reduce or
eliminate the innkeeper’s liability.
Failure to provide information at the
time of an express deposit may also
reduce or negate the liability of the
hotel.
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Categories of Property
Left Behind by a Guest
Lost property – a reasonable attempt to
locate the guest must be made using
registration card information
Mislaid property – the owner placed the
item in a special location, and then forgot it
Abandoned property – the owner has given
up ownership of the property
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Access to the Guest’s
Room
Once a guest occupies a room, there are
restrictions upon the rights of others based
upon the guest’s
• right to privacy, and
• right to exclusive use of the room.
Front desk clerks and switchboard
operators should not reveal any guest
information.
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Insurance
The following types of insurance are
recommended for innkeepers:
• Fire insurance
• Theft insurance
• Business interruption insurance
• Public liability insurance
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Property of Nonguests
There is no innkeeper-guest duty with
respect to the property of nonguests.
The statutory limitation on liability of
an innkeeper does not apply.
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Bailment
Bailment is the temporary transfer of
possession (not title) of personal
property from the bailor to the bailee.
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Elements of Bailment
Bailment applies only to personal property.
The bailor transfers physical possession of
the property.
The bailee acknowledges receipt of the
property.
There is an express or implied agreement
that the property will be returned to the
bailor upon request.
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Types of Bailment
Bailment for the sole benefit of the
bailor- gratuitous bailment
Bailment for the sole benefit of the
bailee
Bailment for hire
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Liability in Bailment
Cases
The bailor must establish
• the property was delivered to the bailee
• the bailee accepted it
• the property was not returned or was
damaged
• the bailee breached the duty owed to
the bailor
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Thomson Canada Limited
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