A potpourri of cases: Lessons from others’ mistakes

Numerous court cases have recently been decided against hotels on matters that hospitality managers face daily. These lawsuits serve as a reminder of everyday situations that can erupt into lawsuits. Below is an overview of some and suggested precautions to avoid liability.

1. Expedia delisted a hotel because of a social media campaign portraying the inn as racist against Native Americans¹. The hotel relied on the website for 80 percent of its business. The hotel sued and lost because its contract authorized Expedia to refuse to list a hotel “in its sole discretion.” Lesson: Treat all people respectfully and strive to always provide good service.
2. A hotel was denied insurance coverage because it failed to promptly notify the company of a covered loss². Roof shingles broke free in a wind storm. Believing the policy’s deductible was greater than the cost of repairs, the hotel declined to seek coverage. Five months later, damage to the hotel’s phone system was discovered to be caused by water intrusion resulting from the missing roof shingles. Notice was then given to the insurance company. However, the contract required “prompt notification”, and the timing was not prompt. Lesson: Always notify your insurance company timely whenever a loss occurs. 
3. A guest who fell on a stairway that lacked handrails and a broken step sued for her injuries³.   The case is pending; the plaintiff is likely to succeed. Lesson: All facilities must be kept in good order. If part of your facility falls below that standard, remove the area from service with applicable signage until repairs can be made.
4. A hotel hired a worker relying on the recommendation of his mother, a long time, well-respected employee, without conducting a background check⁴. The newly hired worker entered a fight with a guest who then sued the hotel. A background check would have revealed a long criminal record. Lesson: Do not dispense with hiring protocols no matter how tempting that may be.  
5. A casino patron was attacked in the ladies’ room by several intoxicated people. The facility had a policy requiring security to escort intoxicated patrons out of the casino. Plaintiff sued and won based on the facility’s failure to execute its security program⁵. Lesson: Good policies alone will not protect against lawsuits. The policy must be effectuated.
6. Numerous sex trafficking cases continue to wind their way through the courts, including as defendants both franchisees and franchisors. Lesson: Hotel staff must be trained on telltale signs of sex trafficking, and when suspicions occur, authorities should be immediately notified.

Keep it legal; your guests will be well-served and uninclined to sue.

1. 2026 WL 91599 (W.D. Wash., 2026).
2. Touchmark Hotel Group v. Mt. Hawley Insurance Co., 2026 WL 17247 (3^rd. Cir., 6/23/26).
3. Ingle v. Sonesta International Hotels, Corp., 2025 WL 3228236 (D. Mass., 2025).
4. Lemoine v. W. Bank Hotel, LLC, 2026 WL 383559 (La. App. Crt., 2026).
5. Jackson v. Live! Casino and Hotel Philadelphia, et seq, 2026 WL 507865 (Superior Crt., Penn., 2026).