Gress v. Lakhani Hospitality, Inc.
Gress v. Lakhani Hospitality, Inc.
Opinion
¶ 1 On the evening of October 2, 2013, Karla Gress was a guest at the Holiday Inn Chicago-Skokie (Skokie Holiday Inn), which was owned and/or managed by defendants Lakhani Hospitality, Inc. (LHI), and Mansoor Lakhani (Lakhani). After eating dinner and consuming an alcoholic beverage in the hotel restaurant, Karla went to her room where she was subsequently raped while unconscious, allegedly by the hotel security guard who also did some maintenance work at the hotel.
¶ 2 Karla and her husband, Dean Gress (via a loss of consortium claim) (plaintiffs), brought a premises liability action against LHI; Lakhani; hotel Director of Operations Sheila Gilani; and the LHI franchisors, Intercontinental Hotels Group Operating Corporation and Intercontinental Hotels Group Resources, Inc. (collectively Intercontinental). As to the alleged offender, Alhagie Singhateh, plaintiffs claimed that he committed assault and battery, as well as intentional infliction of emotional distress and gender violence. Plaintiffs also sued Intercontinental and Hostmark Hospitality Group, Inc. (Hostmark) for negligently hiring and retaining Singhateh, alleging that Hostmark processed Singhateh's initial job application but failed to discover his arrest for soliciting a prostitute. Finally, plaintiffs sued Intercontinental for negligent training and supervision of LHI employees. The trial court dismissed, with prejudice, the premises liability counts and also the counts related to negligent hiring and retention and negligent training and supervision under section 2-615 of the Code of Civil Procedure (Code) ( 735 ILCS 5/2-615 (2012) ), leaving the unrepresented alleged perpetrator as the lone defendant. Plaintiffs filed the present interlocutory appeal after the trial court held that there was no just reason to delay an appeal of its order under Illinois Supreme Court Rule 304(a) (eff. Mar. 8, 2016).
¶ 3 For the reasons to follow, we reverse and remand the dismissal of the premises liability counts in plaintiffs' fourth-amended complaint that were directed at LHI, Lakhani, and Gilani. We agree with plaintiffs, *254 finding that they adequately pleaded the existence of a special relationship duty of care between LHI and its employees as the innkeeper and Karla as the guest, and contrary to the trial court's finding, we find that plaintiffs adequately alleged that Singhateh's sexual assault was reasonably foreseeable under both the duty and causation elements of negligence. We affirm the trial court's dismissal of the counts directed at Intercontinental and Hostmark, as none of those defendants were alleged to be a possessor of the premises, and they had no ability or authority to control any activities of LHI's employees. Thus, they owed no duty of care to plaintiffs under these circumstances.
¶ 4 BACKGROUND
¶ 5 Singhateh was hired as a security guard at an O'Hare Holiday Inn in 2004. The following year, LHI purchased both the O'Hare Holiday Inn and the Skokie Holiday Inn, with Intercontinental serving as the franchisor. Singhateh became an LHI employee as a result of the sale and worked at both hotels.
¶ 6 Plaintiffs' first four complaints at law were dismissed with leave to amend. The trial court's dismissal of plaintiffs' fourth-amended complaint is the subject of this appeal. The following operative facts are taken directly from plaintiffs' complaint. Karla alleged that she was a guest at the Skokie Holiday Inn and that she had a drink at the hotel's Bar Louie restaurant/lounge. During that time, she alleged that, unbeknownst to her, Singhateh placed a narcotic substance in her drink. Singhateh, as a hotel security guard, had a key to Karla's room. On the evening in question, Singhateh was directed by another LHI employee to enter Karla's room alone, allegedly in order to repair a faulty air conditioner unit, even though LHI had been advised that Karla was intoxicated. The limited key card records show that "a duplicate key" was used to access Karla's room at 9:40 p.m. Once there, Singhateh raped Karla while she was unconscious. When Karla awoke, she realized that she had been sexually assaulted. A rape kit was taken the next morning at a nearby hospital, and police matched fluid to Singhateh's DNA at a subsequent date. Meanwhile, for reasons that are not disclosed in plaintiffs' complaint or the parties' briefs, Singhateh continued to work for LHI for several years after this occurrence.
¶ 7 Plaintiffs' complaint made numerous allegations about unseemly conduct by Singhateh and others at the Skokie Holiday Inn. Plaintiffs alleged that Singhateh had previously been arrested for solicitation of prostitution after offering an undercover police officer $10 for sexual relations. There was no indication that LHI was aware of that arrest, although the hotel was allegedly aware of another named employee's embezzlement of LHI funds, which was reported to police. In spite of this, LHI also continued to employ this employee. According to plaintiffs, prior to the incident in this case, several named LHI guests filed police reports of stolen property from their rooms, with the key card history of one guest showing that only LHI employees had accessed his room. Plaintiffs also alleged that employees often brought women into the hotel and gave them alcoholic beverages and fraternized with them in a hotel room. Prostitutes were alleged to have frequented the hotel and were served alcohol at the bar. These hotel employees also disabled surveillance cameras, presumably for improper purposes. In April 2011, an unnamed guest called the police department reporting a sexual assault (this allegation lacked further details). In December 2013, just two months after Karla's rape, another unnamed LHI guest allegedly had several drinks at the bar, then was approached *255 by two males, only to later awake in her hotel room naked, and although she did not remember certain portions of the evening, she recalled one male on top of her having intercourse. She reported this rape to the Skokie police.
¶ 8 Additionally, Singhateh was allegedly known by management to have harassed managers and was seen searching their bags without consent. Some six years before this occurrence, plaintiffs alleged that Singhateh was working at the O'Hare Holiday Inn during which time a female guest complained about creepy behavior by the security guard, which included him contacting her at her hotel room via the hotel telephone, even though she had not given this security guard her name or room number. She also said that the same person offered to bring a Caesar salad to her room, even though she had not ordered any food. Finally, she became concerned when she saw a shadow outside her room, leading her to latch and barricade the door. She complained to management that she was concerned for her physical safety and that of other hotel guests based on the interaction. Although Singhateh was not identified by name, the resulting report was placed in his LHI file, implying that management knew that the guest was talking about Singhateh.
¶ 9 In response to these allegations, the trial court ruled that the hotel and its management employees could not have reasonably foreseen that their security guard (who doubled as a handyman) might sexually assault an intoxicated female guest if granted access to her room. Finding that plaintiffs' allegations "continue to lack relevant facts to support the foreseeability of [the] attack," primarily because none of the "additional incidents" alleged by plaintiffs included "a sexual assault by Singhateh or another employee of a hotel guest in her room," the court thereby relieved defendants of any duty to protect Karla from the security guard's criminal activities. The court likewise found that neither Karla's intoxication nor Singhateh's arrest provided a basis for foreseeability. Thus, in dismissing the premises liability counts, the trial court accepted defendants' argument that they had no duty to foresee that Singhateh might rape Karla since they had not known him to have done that previously and that plaintiffs failed to sufficiently plead causation. As stated, the court determined that the counts related to negligent hiring and retention, and also to negligent supervision and training against Intercontinental and Hostmark, should be dismissed because there was no nexus between Singhateh's alleged unfitness due to his arrest and the sexual assault of Karla. Plaintiffs appealed.
¶ 10 ANALYSIS
¶ 11 Plaintiffs now challenge the trial court's judgment. The question presented by a motion to dismiss a complaint under section 2-615 of the Code is whether the complaint alleges sufficient facts that, if proved, would entitle the plaintiff to relief.
Bogenberger v. Pi Kappa Alpha Corp.
,
¶ 12 Premises Liability Against LHI, Lakhani, and Gilani
¶ 13 Plaintiffs first contend that they alleged sufficient facts to establish premises liability negligence in that the defendants LHI, Lakhani, and Gilani 1 (1) failed to ensure the safety of their guests generally and also via policy and procedure, (2) improperly gave Singhateh a key to Karla's room and instructed him to fix the air conditioner despite being informed that she was demonstrably intoxicated, (3) failed to perform background checks on their employees, (4) failed to provide adequate security personnel and security cameras, and (5) failed to keep track of the rooms' key cards. Plaintiffs also challenge the dismissal of the associated loss of consortium claims.
¶ 14 In an action like the present, where the plaintiff seeks recovery based on the defendant's alleged negligence, the plaintiff must plead and prove the existence of a duty owed by the defendant, a breach of that duty, and injury proximately resulting from that breach.
Bogenberger
,
¶ 15 Plaintiffs contend that they adequately pleaded the existence of a special relationship between the hotel and Karla, such that the hotel had a duty to protect her against the criminal actions of a third party, including the hotel's own employee. While generally speaking, the owner or possessor of property does not owe a duty to protect invitees from the criminal acts of third parties, however, a notable exception to this is if a special relationship exists between the parties,
*257
such as, in this case, an innkeeper and its guests, a common carrier and its passengers, a voluntary custodian and ward, or a business invitor and invitee.
Iseberg v. Gross
,
"A[n] [innkeeper] is under a duty to its [guests] to take reasonable action
(a) to protect them against unreasonable risk of physical harm, and
(b) to give them first aid after it knows or has reason to know that they are ill or injured, and to care for them until they can be cared for by others." Restatement (Second) of Torts § 314A, at 118 (1965).
The duty to protect against unreasonable risk of harm extends to risks arising from acts of third persons, whether innocent, negligent, intentional, or even criminal. Restatement (Second) of Torts § 314A cmt. d, at 119 (1965). Likewise, before duty can attach, a defendant must know or should know of the unreasonable risk of injury. Restatement (Second) of Torts § 314A cmt. f, at 120 (1965). This is another way of saying that the defendant must know of the chance of injury or the possibility of harm. See Black's Law Dictionary (10th ed. 2014) (defining "risk"). Pertinent to this case, the Restatement (Second) of Torts § 319 (1965) 2 also states that when one actor (like the hotel) takes charge of a third person (like a hotel employee) "whom he knows or should know" would likely cause bodily harm to another (like Karla) if not controlled, that actor "is under a duty to exercise reasonable care to control the third person [like the employee] to prevent him from doing such harm." 3
¶ 16 Courts have historically held that a hotel or common carrier, for example, must exercise the "highest degree of care," which we interpret simply as another way of expressing the existence of a special relationship.
4
See
*258
Krywin
,
¶ 17 Whether the rape in this case could have been reasonably anticipated by LHI and its employees, and was thus foreseeable, forms the crux of the parties' contentions on appeal. See
Bruns v. City of Centralia
,
¶ 18 To understand foreseeability as it relates to a special relationship duty of care at the pleading stage, we turn to Illinois Supreme Court law. In the seminal special duty case of Marshall , a Burger King customer was eating in the restaurant when Pamela Fritz lost control of her car in the parking lot, rendering it airborne, before it crashed into the building and killed the customer. The trial court dismissed the case on a section 2-615 motion after finding no duty because the type of accident was unlikely and the burden to protect against the accident was onerous. The supreme court disagreed and affirmed the appellate court's reversal and remand of the case.
¶ 19 The supreme court held that due to the business invitor-invitee special relationship, the defendants, as owners and operators of the restaurant, owed an affirmative duty to the deceased customer to protect against the third-party negligent driving of Fritz. They specifically reasoned that the duty to protect arose out of the special relationship of the parties, noting that this special relationship and duty of care encompassed "the type of risk-
i.e.
, the negligent act of a third person-" that led to the customer's injury.
Marshall
,
¶ 20 Marshall then analyzed whether the defendants had shown that they were entitled to an exemption from the duty of protection. In doing so, the court examined the traditional four policy factors associated with "duty," including the reasonable foreseeability of the injury, the injury's likelihood, the burden of guarding against the injury, and the consequences of placing the burden on the defendant, before concluding that the defendants had not rebutted the existence of a duty to protect. 5 The court declined to fully address whether the business invitor's lack of knowledge of prior, similar incidents of negligent conduct, should limit his duty of care, finding the defendants' argument in that regard underdeveloped. Most pertinent to our analysis here is that the court also specifically found it unpersuasive that a defendant must have some notice of a prior incident or prior conduct before the law imposes a duty to protect a plaintiff from the conduct of a third party, or that the prior incident must be sufficiently similar to put a defendant on notice that there is a reasonable probability that the acts of the third party are likely to cause physical harm to others.
*260
Id.
at 444-45,
¶ 21 Other supreme court cases (both before and after
Marshall
), appear to require foreseeability
6
as an inherent requirement in proving a special relationship duty to protect. In
Iseberg
,
¶ 22 Here, as in Marshall , due to the hotel-guest special relationship pleaded in this case, defendants owed an affirmative duty to Karla to protect against third-party criminal attacks. Restatement (Second) of Torts § 314A cmt. d, at 119 (1965). This type of relationship encompassed the type of risk, a sexual assault by a hotel employee. Plaintiffs' complaint specifically alleged that while Karla was a paying guest at a hotel owned, operated, and managed by defendants, she was rendered intoxicated by defendants' employee and then sexually assaulted by him in her room. LHI's hotel management essentially facilitated the assault by sending this male security guard/repairman into that room, knowing that he had a key, despite being forewarned that the female guest was intoxicated. We observe that to "safely" commit his crime, Singhateh needed to be in Karla's room, alone with her, behind the locked door. Rather than affirmatively protecting her privacy and safety in her locked room, the hotel management vitiated it. See Restatement (Second) of Torts § 314A cmt. d, at 119 (1965). ("[t]he duty to protect the other against unreasonable risk of harm extends to risks arising out of the actor's own conduct"). In other words, the allegations establish that LHI and its management should have known that Singhateh *261 could have entered Karla's room without her consent and then taken advantage of her.
"A guest, who is either asleep in [her] room or about to enter [her] room, should not be subjected to the risk of an assault * * *. A guest has a right to rely upon the innkeeper doing all within his power to avoid or prevent such an assault, and to that end should be required to exercise a high degree of care." Fortney ,5 Ill. App. 2d at 335 ,125 N.E.2d 544 .
¶ 23 In this case, at this early stage in the pleadings, foreseeability, or defendants' quality of being able to reasonably anticipate the risk of physical harm, was satisfied by conferring on the parties their special relationship of hotel-guest. With that special relationship, according to
Marshall
, it was incumbent on defendants to show the existence of an exemption under the traditional four duty factors identified above. Given the pervasiveness of sexual assaults and generalized crimes in hotels, it is reasonably foreseeable that hotel guests will from time to time be at such risk in hotels. See
Marshall
,
¶ 24 In reaching our conclusion, we thus reject defendants' claim that because no previous crime of this exact nature in the hotel had been pled in detail (although another LHI guest rape was pled to have occurred a mere two months
after
Karla's alleged rape), they should be relieved of their duty to protect Karla. Relying on
Salazar v. Crown Enterprises, Inc.
,
*262
Id.
at 737,
¶ 25 We find
Danile
and plaintiffs' reliance on
Mrzlak
, both special relationship hotel cases, more appropriate. See
Rowe v. State Bank of Lombard
,
¶ 26 In
Mrzlak
,
¶ 27 We also find
Virginia D. v. Madesco Investment Corp.
,
¶ 28 We likewise decline to impose the equivalent of a "one free rape rule"
7
since there is simply no requirement under Illinois law that an innkeeper be
on notice
of a prior sexual assault before any duty to protect would arise for a third-party attack of that nature. See
Isaacs v. Huntington Memorial Hospital
,
¶ 29 While we decline to impose a strict notice requirement for the duty element in this special relationship case at the pleading stage, we observe that plaintiffs, nonetheless, did adequately plead constructive notice.
Cf.
Comastro v. Village of Rosemont
,
¶ 30 The following cases buttress our conclusion that the hotel was under a duty to protect a vulnerable, drugged guest from injury. In
Kigin v. Woodmen of the World Insurance Co.
,
¶ 31 Similarly, in
Platson
,
¶ 32 In
Anicich v. Home Depot U.S.A., Inc.
,
¶ 33 The Seventh Circuit Court of Appeals reversed, holding that under the factual circumstances, the defendants owed the decedent a duty of care to protect her from her supervisor, who was known to be abusive. After discussing the federal statutes that could impose liability for failing to discipline those harassing employees, the court examined Illinois law regarding liability for negligent hiring, supervision, or retention and held that, pursuant to the Restatement (Second) of Torts § 317(a) (1965), it believed that the Illinois Supreme Court would find that a tortfeasor's use of supervisory authority would provide a basis for employer liability, even though the crime occurred off-premises. Most pertinent to our resolution of this case, the
Anicich
court examined the question of whether an employee's " 'particular unfitness...rendered the plaintiff's injury foreseeable to a person of ordinary prudence in the employer's position.' "
Anicich
,
¶ 34 All of the preceding cases of rape, battery, assault, and murder clearly have many factual variables, but the facts of this case tell an all-too-familiar tale where a vulnerable woman is raped and the assault is enabled by the failure of a responsible party to protect the victim. Plaintiffs deserve the opportunity to expand on their story beyond the pleading stage, and the trial court erred in dismissing the counts of plaintiffs' complaint against the owner, operator, and manager of the hotel and its involved employees.
¶ 35 Proximate Causation and Foreseeability of Injury
¶ 36 Having found duty, we also reject the trial court's conclusion that plaintiffs failed to plead proximate cause. As stated, whether there was a breach of
*266
the duty and whether the breach was the proximate cause of the injury are both matters for the jury.
Thompson v. Gordon
,
¶ 37 For the reasons elucidated at some length above, plaintiffs have adequately pleaded that defendants ought to have foreseen that their security guard/handyman might commit an offense against this incapacitated woman once he gained private and protected access to her hotel room. See also
Fenton v. City of Chicago
,
¶ 38 Premises Liability Against Intercontinental
¶ 39 As for Intercontinental, we agree with the trial court's ruling that the allegations do not support premises liability. In asserting liability, plaintiffs rely on the principle that an innkeeper has a duty to protect against the injurious acts of third persons. Yet, plaintiffs on appeal have not developed any argument, with citation to legal authority, showing that Intercontinental, a franchisor, constitutes an innkeeper or that LHI's status as an innkeeper could be imputed to Intercontinental. See Ill. S. Ct. R. 341(h)(7) (eff. July 1, 2017) (an appellant must set forth contentions on appeal and the reasons therefore, with citation to the authorities and the pages of the record relied on).
¶ 40 Regardless, consistent with Intercontinental's argument, we note that it is well-established in Illinois that no special relationship exists between a franchisor and a franchisee's invitee.
C.H. v. Pla-Fit Franchise, LLC
,
¶ 41 Negligent Hiring and Retention by Intercontinental and Hostmark
¶ 42 Plaintiff also asserts that Hostmark and Intercontinental negligently hired and retained Singhateh. Such an action requires the plaintiff to plead and prove (1) that the employer knew or should have known that the employee had a particular unfitness for the position so as to create a danger of harm to third persons, (2) that such particular unfitness was known or should have been known at the time of the employee's hiring or retention, and (3) that this particular unfitness proximately caused the plaintiff's injury.
Van Horne v. Muller
,
¶ 43 Here, the complaint alleges that Hostmark negligently hired Singhateh in 2004 because his prior arrest for solicitation of prostitution made him an unfit employee who presented a danger of harm to third persons. We agree with the trial court that there was an insufficient "nexus" between Hostmark's failure to discover Singhateh's earlier mere solicitation arrest and a rape that took place many years later. See
Giraldi v. Community Consolidated School District No.
62,
¶ 44 Similarly, plaintiffs' complaint failed to state a cause of action for negligent hiring and retention against Intercontinental. We reiterate that plaintiffs' complaint alleged that Hostmark, as opposed to Intercontinental, actually hired Singhateh in 2004 and that LHI subsequently became Singhateh's employer. Plaintiffs' complaint does not, however, specify when Intercontinental became Singhateh's employer, although it does allege that both LHI and Intercontinental "re-hired" Singhateh in 2012 and 2014. It also does not allege any direct communication between LHI and Intercontinental with respect to management of the hotel or its employees. Instead, plaintiffs' complaint appears to assume that the employer status of a franchisee, such as LHI, may be imputed to a franchisor, such as Intercontinental. Yet, plaintiffs have cited no legal authority in support of that proposition. See Ill. S. Ct. R. 341(h)(7) (eff. July 1, 2017). Accordingly, we affirm the trial court's dismissal of plaintiffs' negligent hiring and retention complaint against Intercontinental.
¶ 45 Negligent Training and Supervising by Intercontinental
¶ 46 Finally, plaintiffs have not developed any argument that the court improperly dismissed their claim that Intercontinental was negligent in training and supervising the employees of LHI. See Ill. S. Ct. R. 341(h)(7) (eff. July 1, 2017);
Marzouki v. Najar-Marzouki
,
¶ 47 CONCLUSION
¶ 48 We therefore reverse the trial court's dismissal of the counts of plaintiffs' fourth-amended complaint directed against LHI, Lakhani, and Gilani, including the loss of consortium claims of Dean Gress (counts I to VI) but affirm the dismissal of all counts against Intercontinental and Hostmark (counts XIV to XXI).
¶ 49 Affirmed in part and reversed in part; cause remanded.
Presiding Justice Cobbs and Justice Fitzgerald Smith concurred in the judgment and opinion.
Plaintiffs specifically note in their brief that they are appealing the dismissal of counts I, III, IV, and XX. Counts I, III, and XX allege, respectively, premises liability negligence against LHI, Lakhani, and Intercontinental. Count IV is a loss of consortium claim against Lakhani for premises liability. We presume that plaintiffs meant to specifically challenge count V, premises liability against Gilani, rather than count IV. We presume this because plaintiffs appear to generally challenge all counts relating to premises liability, as well as the derivative claims of loss of consortium.
Although the parties do not explicitly identify this Restatement (Second) of Torts provision or make specific arguments about LHI and Singhateh's employer-employee special relationship, it adds support to our analysis and conclusion below. See
Simpkins v. CSX Transportation, Inc.
,
The Restatement (Third) of Torts: Liability for Physical and Emotional Harm § 41 (2012) has not been explicitly adopted by our supreme court. It merits mention, however, that section 41 provides that an actor in a special relationship with another "owes a duty of reasonable care to third parties with regard to risks posed by the other that arise within the scope of the relationship," and among the special relationships giving rise to that duty is "an employer with employees when the employment facilitates the employee's causing harm to third parties." Restatement (Third) of Torts § 41 (2012).
Defendants rely on
Schmid v. Fairmont Hotel Company-Chicago
,
In
Simpkins
,
Plaintiffs on appeal take the position that foreseeability is an inherent requirement of duty, failing to specifically acknowledge the holding in Marshall .
This would be the equivalent of the long gone common law "one bite rule," where an injured plaintiff had to plead and prove a dog owner either knew or was negligent not to know that his dog had a propensity to bite people. See
Harris v. Walker
,
Plaintiffs in fact alleged a number of additional incidents involving Singhateh, which happened after the sexual assault in this case and, if considered, would satisfy notice. Plaintiffs alleged that in mid-October 2013, a stolen computer was found in Singhateh's possession; in January 2015, he allegedly attempted to run a plow truck over two guests and then proceeded "aggressively intimidate them and remove his clothing to physically assault" them; and, in January 2015, Singhateh was allegedly following female guests to their rooms and making them uncomfortable. This alleged evidence also highlights the anomalous result of imposing a strict notice requirement on plaintiffs at the pleading stage.
Reference
- Full Case Name
- Karla GRESS, Individually, and Dean Gress, Individually, Plaintiffs-Appellants, v. LAKHANI HOSPITALITY, INC., an Illinois Corporation, D/B/A Holiday Inn Chicago-Skokie; Lakhani Hospitality, Inc., an Illinois Corporation, D/B/A Bar Louie Skokie; Mansoor Lakhani, Individually; Sheila Gilani, Individually; Hostmark Hospitality Group, Inc., an Illinois Corporation; Intercontinental Hotels Group Operating Corporation, a Foreign Corporation; Intercontinental Hotels Group Resources, Inc., a Foreign Corporation; And Alhagie Singhateh, Individually, Defendants (Lakhani Hospitality, Inc., D/B/A Holiday Inn Chicago-Skokie; Lakhani Hospitality, Inc., D/B/A Bar Louie Skokie; Mansoor Lakhani; Sheila Gilani; Hostmark Hospitality Group, Inc.; Intercontinental Hotels Group Operating Corporation; And Intercontinental Hotels Group Resources, Inc., Defendants-Appellees).
- Cited By
- 2 cases
- Status
- Unpublished