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
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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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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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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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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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Thomson Canada Limited
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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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Thomson Canada Limited
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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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