Question: The Mathiases checked into a Motel 6 and were bitten extensively by bedbugs. Upon investigation, they learned that the managers and owners of the motel

The Mathiases checked into a Motel 6 and were bitten extensively by bedbugs. Upon investigation, they learned that the managers and owners of the motel had been warned by guests, employees, and exterminators alike that there were bedbugs in the rooms. The exterminator offered to spray the motel each year for $ 600, but the motel refused. As a result, the bugs remained and propagated. The Mathiases filed suit, seeking punitive damages. The trial court awarded them $ 5,000 compensatory damages and $ 186,000 punitive damages. The motel appealed the punitive damage award as excessive. Is the award excessive? Should the punitive damages be reversed? Why do you think the hotel wants to have a court decision on this suit? [Mathias v. ACCR Economy Lodging, Inc., 347 F. 3d 672 ( 7th Cir. 2003).]

Step by Step Solution

★★★★★

3.46 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The court held as follows All things considered we cannot say that the award of punitive damages was excessive albeit the precise number chosen by the ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

612-L-B-L-L-E (3438).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!

Frosty Land Foods shipped a load of beef from its plant in Montgomery, Alabama, to Scott Meat Co. in Los Angeles via Refrigerated Transport Co. (RTC), a common carrier. Early Wednesday morning,...

Randolph Companys product mix has become more diverse over the past few years. Consequently the company undertook an activity-based costing initiative to develop accurate costs for production, as...

Its a nursing assignment based upon the communication skill of the nurses will respond to the situation and to the circumstances. You need to answer in the blank spaces Aim: Knowledge Evidence: The...

3-3 Jennings text, p. 302, Consider The Mathiases checked into a Motel 6 and were bitten extensively by bedbugs. Upon investigation, they learned that the managers and owners of the motel had been...

The Mathiases checked into a Motel 6 and were bitten extensively by bedbugs. Upon investigation, they learned that the managers and owners of the motel had been warned by guests, employees, and...

CALIFORNIA STATE UNIVERSITY, LOS ANGELES College of Business and Economics, Department of Finance and Law FINANCE 205 - LEGAL AND REGULATORY ENVIRONMENT OF BUSINESS I Instructor: Prof. Mark S....

Did the appellate Court uphold the trial Courts award of compensatory damages to the Mathiases and against Accor? If so, (1) explain the purpose of compensatory damages in civil litigation; and (2)...

a. (10 Points for this Question) - Did the appellate Court uphold the trial Court's award of compensatory damages to the Mathiases and against Accor? If so, (1) explain the purpose of compensatory...

Could you take a look at the attached tax forms and see if I filled them out correctly. It is a group assignment, and I only have to provide IRS Forms 3800 and 5884. I'm also attaching the story...

An analyst has estimated how a particular stock's return will vary depending on what will happen to the economy. What is the expected rate of return? 1. STATE OF THE ECONOMY Recession Below Average...

Identify and outline three different sustainability practices common in Australian workplaces. What organisational characteristics are likely to inhibit innovation?

Problem 9 - 1 0 ( Static ) ( LO 9 - 4 ) On which of the following dates would a company enter into a hedge of a forecasted foreign currency import purchase? Multiple Choice Date on which the company...

What are the characteristics of a corporation?

In 1996, Congress offered national banks the opportunity to become Subchapter S entities. Amboy Bancorporation was a small, highly profitable New Jersey Bank that was overcapitalized. Amboys...

Larry Phillips was hired for a two-year period as executive secretary of the Montana Education Association (MEA). Six months later, he was fired. He then sued MEA for breach of contract and sued the...

Christy Pontiac, a corporation, was indicted for theft by swindle and forgery involving a GM cash rebate program. Hesli, a middle-management employee of Christy Pontiac, had forged the cash rebate...

Albert Co. is considering a four-year project that will require an initial investment of $12,000. The base-case cash flows for this project are projected to be $14,000 per year. The best-case cash...

Project A is opening a bakery at 10 Center Street. Project B is opening a specialty coffee shop at the same address. Both projects have unconventional cash flows, that is, both projects have positive...

A 10-year convertible bond has a face value of $1,000 and pays an annual coupon of $50. The bond's conversion price is $40. The issuing company's stock currently trades at $30 a share. The company...