When Things Go Missing: Hotel Liability

Hotel Liability on Missing Items

When you travel, hotels offer a variety of convenient services, including laundry service. But what happens when you send out your clothes and they, along with some valuable items you accidentally left in them, go missing? A common assumption is that the hotel is liable for any and all losses. However, the legal reality is often more complex, especially when considering the difference between a breach of contract and a criminal act by an employee.

Criminal Acts of Employees

Generally, a business is not liable for the independent criminal acts of its employees. This principle applies unless the employer was negligent in hiring the employee. For example, if a hotel hired a person with a known history as a jewel thief, they might be found negligent. However, in most cases, a hotel is not responsible if a staff member steals a guest's property. The guest would have a legal claim against the employee for conversion, but if the employee is likely "judgment proof," meaning they have no assets to seize, the lawsuit may not result in a financial recovery.

Contractual Liability for Services

The situation changes when the missing items are directly related to the service the hotel was contracted to perform. If a guest sends clothes to the hotel's laundry service and the clothes are lost, the hotel may be liable for the value of the clothes. The hotel was hired to wash and return the clothes, and by losing them, they have breached the contract and were negligent in their handling of the property.

The Case of the Missing Jewelry

The legal distinction between the lost clothes and the missing jewelry is crucial. While the hotel is likely liable for the clothes because they were part of the laundry service agreement, the jewelry is a different matter. A guest leaving jewelry in their clothes is not hiring the hotel to clean or polish the jewelry. The theft of the jewelry is likely to be considered an independent criminal act by the employee, outside the scope of the hotel’s contractual services. Therefore, while the hotel may be responsible for the lost clothes, it is unlikely to be held liable for the stolen jewelry.

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