Biggest changes and issues in hospitality law

By Dr. John Hogan

In my Hospitality Conversations, I interact with professionals in a wide range of the industry and this particular conversation is with Karen Morris and Diana Barber. These two individuals have exceptional credentials and regularly present a summary of the top 100+ legal cases that impact the hospitality industry the preceding year at the annual Hospitality Law Conference held in Houston, Texas. (This year's dates are coming-up soon: February 10-12).

Their credentials also include being recognized for their contributions to the industry with the 2013 Anthony G. Marshall Award, which is given in recognition of pioneering and lasting contributions to the field of hospitality law. (More comprehensive bios of Karen Morris and Diana Barber are included below.) 

I asked them to respond to two questions: What would you say have been the biggest changes in hospitality law affecting hotel owners in the past five years and what would you opine are the two biggest issues hotel managers face in the coming year?

Advertisements

Their responses were focused and to the point.

Karen Morris

• Employment issues remain hot, and as such are a mine field for restaurateurs and hoteliers.

• Retaliation, discrimination, sexual harassment, overtime pay, failure to check applicants' credentials and references, and arbitration clauses remain the subject of many a lawsuit. (Hotel owners and managers should) Think prompt and conduct a thorough investigation, followed by appropriate discipline and employee training. This can significantly reduce liability.

• Another topic that doesn't quit is franchising. The contract between the franchisor and franchisee is critical. A franchisee should study it and consult at length with his/her lawyer and accountant to fully understand the undertaking.

• Not infrequently, insurance issues surface in lawsuits. As with franchising, the language of the contract is determinative.Hospitality manager are well-advised to employ their lawyer to review contracts of all stripes before signing. This can save many legal problems down the road.

• Finally, premises liability (negligence) remains a significant cause of lawsuits. Managers cannot for a moment let up their guard when looking for dangerous conditions in and around their facilities.

Diana Barber

• We continue to see employment cases take front and center. I put great weight on this as we only review cases that have gone through the judicial system so we are seeing only the tip of the iceberg. There must be many, many more that get settled or fizzle out long before a court hears the case.

• Employers must be mindful that they must ALWAYS conduct themselves with fairness and be professional.

• They must respect all employees and not play favorites.

• The workplace is not the place to allow one's true self to emerge, even in a free country. Too much is at stake and businesses and reputations are always at risk. One's guard should never go down.

• As with all other cases (premises liability comes to mind), employers must take a proactive stance and steer clear away from potential liabilities. Preventative mindset is key. Not to live in fear about doing the wrong thing; everyone makes mistakes. But the hope is to minimize these mistakes and learn from them.

• Constant employee training is crucial and should not be cast aside when budgetary times are challenging.

About our interviewees:

Karen Morris, JD LL.M. is a judge, lawyer, professor and author. She teaches a range of law courses (penal, constitutional, business, environmental and hospitality) both online and traditional classroom. Her background with those four roles gives her a wide range of accomplishments:

• Columnist at Hotel and Motel Management Magazine, "Legally Speaking" since 2007 (which followed the 20+ year "At Your Risk" series from the late Dr. Tony Marshall)

• Blogger for Cengage Publishing Company

• Author of the textbook, Hotel, Restaurant and Travel Law

• Professor with Monroe Community College since 1980 and was the 1st community college professor in the state university system to receive designation of Distinguished Professor (2006)

• Published in 2011 Law Made Fun through Harry Potter's Adventures

• UNY Chancellor's Award for Excellence in Teaching, 2002

• MCC Excellence in Teaching Award, 1994

• Past President – Faculty Senate; Past President – Northeast Academy of Legal Studies in Business

• Former Member – Governing Council Faculty Association

• Faculty Advisor to Hillel; Past Faculty Advisor to Phi Theta Kappa, MCC's Honor Society

• Former Faculty Advisor to College Democrats Club

• Guest Speaker to many industry groups

• Former Assistant District Attorney; Former In-House Counsel for Macy's Department Store

She has also been elected by town residents six times, serving since 1994 as Brighton Town Justice, is the author of numerous precedent-setting decisions, the Administrative Judge for Brighton Town Court and has Adjudicated 75,000 cases

Diana S. Barber, J.D., CHE, is a full-time Lecturer at the School of Hospitality Administration at Georgia State University, Atlanta, Georgia; where she has taught since the summer of 2003. She teaches hospitality law, introductory hospitality and also serves as the Program Director of the School of Hospitality's Study Abroad program with a European Hospitality Experience to Spain, France, Monaco, Italy and Switzerland.   

Additional recognitions and service

• 2011 Teaching Excellence Award from the J. Mack Robinson College of Business

• Georgia State University's Study Abroad Program Director of the year for 2011

• Recipient of the 2010 Hospitality Faculty of the Year award

• Since 2007, on the editorial board of Hospitality Law monthly newsletter

• Service as a litigation industry expert

• Authors a monthly column for the Georgia Hotel & Lodging Association newsletter.

• Recently inducted into Phi Beta Delta Honor Society for International Scholars.

• Of Counsel" with Berman Fink Van Horn, PC, a law firm in Atlanta, Georgia, which is also the general counsel to the GHLA.

She began her law practice as an associate attorney at King  & Spalding in Atlanta, Georgia after graduating cum laude from Walter F. George School of Law at Mercer University. She then spent over fourteen years as associate general counsel for The Ritz-Carlton Hotel Company, LLC. She is a member of the State Bar of Georgia, G.A.H.A., and the Georgia Hotel & Lodging Association. 

About the Author

Dr. John Hogan is a Certified Hotel Administrator (CHA), Certified Master Hotel Supplier (CMHS), Certified Hospitality Educator (CHE), and a Certified Hotel Owner (CHO).

He is a successful hospitality executive, educator, author and consultant and is a frequent keynote speaker and seminar leader at many hospitality industry events. He is CEO and Co-Founder of HospitalityEducators.com , and also the Principal of  HoganHospitality.com , which offers hotel expert witness services and hospitality consulting.