Gress v. Lakhani Hospitality, Inc.

2018 IL App (1st) 170380
Appellate Court of Illinois·Decided July 31, 2018·No. 1-17-0380·Published·Cited by 7 cases

Opinion

Digitally signed by Reporter of Decisions Reason: I attest to the

Illinois Official Reports accuracy and integrity of this document

Appellate Court Date: 2018.07.10 13:20:27 -05'00'

Gress v. Lakhani Hospitality, Inc., 2018 IL App (1st) 170380

Appellate Court KARLA GRESS, Individually, and DEAN GRESS, Individually, Caption 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, 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).

District & No. First District, Third Division Docket No. 1-17-0380

Filed May 2, 2018

Decision Under Appeal from the Circuit Court of Cook County, No. 2015-L-1314; the Review Hon. Kathy M. Flanagan, Judge, presiding.

Judgment Affirmed in part and reversed in part; cause remanded.

Counsel on Robert G. Black, of Law Offices of Robert G. Black, P.C., of Appeal Naperville, for appellants.

Michael Resis, Ellen L. Green, and Margaret C. Firnstein, of SmithAmundsen LLC, of Chicago, for appellees.

Panel JUSTICE LAVIN delivered the judgment of the court, with opinion.

Presiding Justice Cobbs and Justice Fitzgerald Smith concurred in the judgment and opinion.

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 (West 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, 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 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.

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