Assume you are a mediator whose job is to the hotel\'s maintenance staff. The Hu
ID: 1115842 • Letter: A
Question
Assume you are a mediator whose job is to the hotel's maintenance staff. The Hunters are also suing the fran- help opposing parties limit the expense and chise company because a mandatory inspection of property safety, time of going to trial in matters of personal whic, as part of the franchise agreement, was to have been per- injury. In your current case, Jeremy and formed annually, had not been done in the three years prior to the WHAT property YOU DO? rrent case, Jeremyandch, as part of the franchise YOU DO? Anne Hunter have filed a personal injury suit against the Fairview Mayton Hotel's accident.) The hotel's insurance company takes the position that Susan's parents gave her permission to use the tub despite a written warning on the side of the tub saying it was not to be used by persons under age ownership group and its franchisor, Mayton Hotels and Resorts Inc. According to the Hunters, they checked into their suite at the Fairview Mayton, one of 150 independently owned, franchise-affiliated 14, and thus they bear a majority of the responsibility for the accident. properties on a Friday night. Their daughter Susan, who was eight The Mayton franchise company's insurance company states it is not years old at the time, opened a sliding patio door, and upon seeing responsible for the acts of its franchisees, and thus cannot be held the outdoor hot tub that was part of suite, asked her parents if she accountable. The hotel's manager has been terminated. The Hunters could get in. They told her yes. Upon entering the tub (it is agreed whose lawyer has accepted the case on a contingency basis, is suing by both parties that Susan "jumped" into the hot tub), she suffered for a total of $5 million. third-degree burns over 80 percent of her body, and her facial fea- tures were permanently disfigured because the water in the hot tub was 160 degrees Fahrenheit, not 102, the maximum recommended by the tub's manufacturer, and well above the 105-degree maximum dictated by local health codes. An investigation determined that the hot tub safety switch, designed to prevent accidental overheating 3. What would you recommend the Hunters do? had been bypassed when some wiring repair had been performed by 1. What would you recommend the Fairview Mayton's insurance 2. What would you recommend the franchise company's insuranceExplanation / Answer
Recommendation to Fairview Mayton's insurance company:
Though the contention of Fairview Mayton's insurance company (i.e. the hot tub was not to be used by persons under 14 years of age as a written warning) is acceptable, however, since the hot tub's safety switch was compromised during a wiring repair by hotel's maintenance staff due to which water temperature could have not been detected by anyone without a touch/feel in water, a similar accident could have happened with adults as well. My advice would be to discuss the extent of responsibility with other two parties and assume a fair part of the claim as compensation to the Hunter's family.
Recommendation to Mayton Hotels and Resorts Inc.
The franchise company is also at fault as they have not followed a critical part of the franchise agreement. Since an annual mandatory safety inspection of property is a clause in franchise agreement and the franchise company did not conduct safety audit of this property in three years prior to the accident, they are also partially responsible for this accident. The view of the franchise company's insurance company that they are not responsible for the acts of its franchisee is incorrect and hence, the franchise company’s insurance company should also discuss the extent of responsibility with other two parties and assume a fair part of the claim as compensation to the Hunter's family.
Recommendation to the Hunters' Family:
Though the Hunters have severely suffered due to this accident, the parents of Susan are also responsible for the negligence of their parental duties in the following ways:
My advice to all the three parties is to discuss the extent of responsibility and damage among themselves in a composed manner, since all the parties are at fault in one way or another.