a. When goods are stolen, hotels rely on innkeeper statutes. What do the statutes generally hold?
b. Why is this statute necessary?
c. Didn't the hotel act improperly by issuing a second key to Powers' room to an unknown person?
d. Why?
David Powers and a friend arrived at the Hilton Casino in Atlantic City for a two-day stay, Powers' fourth visit to the hotel. They checked in at the front desk and received electronic room keys. Clearly visible signs, posted there and in each room, notified guests that the hotel was not responsible "for valuables or other property left in room," and that the hotel had a safe for valuables.
Powers won $76,000, which he converted into $25,000 cash, ten grey chips worth $5,000 each, and one white $1,000 chip. He and his friend retired to their rooms. During the night, both Powers and his friend had various room service deliveries. Sometime before he went to bed, Powers placed his cash, chips and a money clip on the dresser. At 4:19 a.m. the front desk issued a second key to Powers' room to an unknown person. Powers awoke to discover that his cash, chips and clip were gone.
Powers ended up $25,000 in debt to the casino, and when he refused to pay, the hotel sued. Powers claimed that the Hilton owed him $76,000 for the stolen merchandise. The trial judge ruled in favor of the Hilton, based on New Jersey's innkeeper statute, which states:
If the proprietor of any hotel shall provide a safe or other depository in the hotel's office or in another convenient place, for the safekeeping of any valuables belonging to guests of the hotel, and shall place, in a conspicuous position in the room or rooms occupied by each guest, a notice stating the fact that a safe is provided in which valuables may be deposited, and any guest shall neglect to deliver valuables to the person in charge of the safe, the proprietor shall not be liable in any sum for the loss of valuables sustained by that guest, by theft or otherwise.... "Valuables" includes money, bank notes, bonds, precious stones, jewelry, ornaments [etc] and any other articles of similar value.
Powers appealed.