World Diamond, Inc. v. Hyatt Corp.

699 N.E.2d 980, 121 Ohio App. 3d 297
CourtOhio Court of Appeals
DecidedJune 30, 1997
DocketNo. 96APE10-1361.
StatusPublished
Cited by19 cases

This text of 699 N.E.2d 980 (World Diamond, Inc. v. Hyatt Corp.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
World Diamond, Inc. v. Hyatt Corp., 699 N.E.2d 980, 121 Ohio App. 3d 297 (Ohio Ct. App. 1997).

Opinions

Tyack, Presiding Judge.

On August 24,1995, World Diamond, Inc., D & R Diamond, Inc., Brad Garman, and Lisa Garman filed a complaint in the Franklin County Court of Common Pleas against Hyatt Corporation and three unnamed John Doe defendants (collectively referred to as “Hyatt”). The plaintiffs set forth five claims for relief against Hyatt, including breach of contract/breach of a bailment contract, negligent misrepresentation, fraud, and negligence. The plaintiffs also requested a declaration as to the interpretation and constitutionality of and their rights under R.C. 4721.01, 4721.02, and 4721.03, Ohio’s innkeeper liability statutes.

The suit arose out of incidents occurring at the Hyatt Regency Columbus on or about August 27, 1994. David Goldstein was the president of D & R Diamond, Inc., and World Diamond, Inc. (collectively referred to as “World Diamond”). Brad and Lisa Garman, husband and wife, and Goldstein were jewelry dealers *301 and were in Columbus for the Mid-American Jewelry Show being held at the Columbus Convention Center. The organizers of the jewelry show provided a safe for exhibitors to store jewelry and precious stones.

Goldstein arrived in Columbus on the night of August 25, 1994 and checked into his room at the Hyatt. He then attempted to deposit his jewelry and precious stones with the jewelry show security office, but it was closed. Gold-stein went to the front desk of the Hyatt, told the clerk he was a guest registered for the jewelry show, and requested a safety deposit box. The desk clerk accompanied Goldstein to the safety deposit room, and Goldstein deposited his jewelry and precious stones in a safety deposit box.

Each safety deposit box requires two keys for entry. A master key is kept by the Hyatt, and the guest is given an individual key for the box.

The other plaintiffs, the Garmans, had secured the diamonds and precious stones they were exhibiting at the show with the show’s security office. However, Ms. Garman deposited her and Mr. Garman’s personal jewelry in a Hyatt safety deposit box.

On August 27, 1994, Goldstein and the Garmans discovered that their respective safety deposit boxes were empty, with no sign of forcible entry, and that their jewelry and precious stones were gone. As a result of these occurrences, the present suit was filed. The Garmans alleged a loss of $42,406, and World Diamond alleged a loss of $450,213.

On May 14,1996, the trial court put on an order setting forth a schedule for the filing of cross-motions for partial summary judgment on the issues of the interpretation and constitutionality of R.C. 4721.01, 4721.02, and 4721.03. The parties filed their motions and memoranda in opposition. On August 2, 1996, the trial court rendered a decision, finding that the Supreme Court had already interpreted the relevant statutes and that such statutes were constitutional. Based upon its construction of R.C. 4721.01 and 4721.02, the trial court concluded that the plaintiffs were precluded from recovering in excess of $500. As a result, Hyatt was granted partial summary judgment.

A judgment entry was journalized on October 10, 1996. World Diamond and the Garmans (“appellants”) have appealed to this court, assigning four errors for our consideration:

“Assignment of Error No. 1
“The trial court prejudicially erred in not interpreting R.C. § 4721.01 and § 4721.02 as eliminating liability as an insurer while maintaining liability for ordinary negligence or theft of an innkeeper.
“Assignment of Error No. 2
*302 “The trial court prejudicially erred in finding that appellee complied with the requirements of R.C. § 4721.01 and that appellee did not enter into a special written arrangement pursuant to R.C. § 4721.02 since genuine issues of fact existed on this issue.
“Assignment of Error No. S
“The trial court prejudicially erred, as a matter of law, in applying the wrong standard in determining the constitutionality of a statute affecting a fundamental right.
“Assignment of Error No. 4
“The trial court prejudicially erred in finding that the innkeeper liability statutes are constitutional when applied to eliminate liability and/or cap damages for the negligence or thefts of the innkeeper or his employees.”

In order to grant a motion for summary judgment, the trial court must find, construing the evidence most strongly in favor of the nonmoving party, that there is no genuine issue of material fact, that the moving party is entitled to judgment as a matter of law, and that reasonable minds can come only to a conclusion adverse to the party opposing the motion. Tokles & Son, Inc. v. Midwestern Indemn. Co. (1992), 65 Ohio St.3d 621, 629, 605 N.E.2d 936, 942-943, citing Harless v. Willis Day Warehousing Co. (1978), 54 Ohio St.2d 64, 8 O.O.3d 73, 375 N.E.2d 46.

In their first assignment of error, appellants contend that the trial court erroneously interpreted R.C. 4721.01 and 4721.02. We note that although appellants included the interpretation of R.C. 4721.03 as an issue in their complaint, that statute has no application to the facts herein, and, thus, it is unnecessary to address its proper interpretation. As to R.C. 4721.01 and 4721.02, appellants assert that the trial court should have interpreted and this court should interpret those statutes to mean that innkeepers are no longer liable as at common law as complete insurers of guests’ property but that innkeepers are liable for their or their employees’ negligence or theft.' Hyatt (“appellee”) contends that the Supreme Court of Ohio has already decided this issue in Chase Rand Corp. v. Pick Hotels Corp. (1958), 167 Ohio St. 299, 4 O.O.2d 345, 147 N.E.2d 849, and that under the facts herein, appellees’ liability is limited to $500 by the statutes.

Before a discussion of the statutes and case law at issue, we provide a brief background of the history of innkeeper liability. The common-law rule was that an innkeeper is practically an insurer of a guest’s property. Therefore, the innkeeper was liable for any loss of the guest’s property unless it was alleged and proven by the innkeeper that the loss was caused by an act of God, a public enemy, or the guest’s negligence, or occurred while the property was in the *303 guest’s exclusive custody and control. Rarrick v. Browne (1949), 151 Ohio St. 276, 39 O.O. 78, 85 N.E.2d 386, paragraph one of the syllabus. Such strict responsibility on the part of an innkeeper was the result of the public nature of an inn, the unsettled condition of the country in medieval England, and the meager facilities for travel. Palace Hotel Co. v. Medart (1912), 87 Ohio St. 130, 133-134, 100 N.E.

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Bluebook (online)
699 N.E.2d 980, 121 Ohio App. 3d 297, Counsel Stack Legal Research, https://law.counselstack.com/opinion/world-diamond-inc-v-hyatt-corp-ohioctapp-1997.