Question

Henderson is on a business trip in New Jersey. He drove his car from New York to New Jersey and checks into the Hotel Ritz. The Ritz has a guarded underground parking lot. Henderson gives his keys to the parking attendant, but did not tell him that his wife’s expensive ($15,000) fur coat was in the car. The coat was packed in a box in the trunk of the car. When Henderson went to check out the next day, he realized his car had been stolen. Henderson is very upset and wants to hold the hotel liable for the car and his wife’s $15,000 fur coat.

what will the insurance company do? Will they acknowledge the claim since the car was stolen at no fault to the owner? How will the owner prove that the coat was lost?

Answer 1

Answer: -

When Henderson provided keys to parking attendant of Hotel Ritz, he had transferred car control to a custodian who would be taking care of the car. Hotel Ritz being the custodian of Henderson's car is responsible of car being stolen. Hotel had guarded parking lot, car getting stolen from their guarded parking lot is a major issue to Hotel as it is not able to safeguard the belongings of their customer, those belongings that were handed over to them by customer. Hotel brand image is at stake as they are not able to provide adequate services to customer. In this event, Hotel could bargain for stolen car with Henderson by providing their contribution to claim proceeding required by Henderson for insurance claim.

Henderson if has bills of wife’s $15000 fur coat, then he could prove that the coat was in car and could get value from hotel in this bargain. Hotel for safeguarding its brand image could pay Henderson for the coat lost.

As Hotel Ritz had guarded underground parking lot from where Henderson car was stolen, insurance company can get required artefact from Hotel Ritz that will help to prove that car was stolen and acknowledge the claim for Henderson.