Court To Decide If Hotel Has To Pay To Customer If Car is Stolen / Damaged By Valet


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Nairrk

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The complainant lost his Maruti Zen in 1988 from the Taj Mahal Hotel in Delhi where he went to dine and has been fighting for compensation since.

Is the hotel liable to pay damages to the guest who lost his car from the hotel’s complementary valet services? This is being decided by a bench of Supreme Court Justices N V Ramana and M M Shantanagouda in respect to a case filed by Sapan Dhawan.

Dhawan was a guest at the Taj Mahal Hotel in Delhi in 1988 where he went to dine. He handed over the keys of his Maruti Zen to complementary valet services and was issued a parking slip. However, when Dhawan returned from his dinner and asked for the key, he was told that his car was stolen.

lamborghini-crash-hotel-valet.jpg
File Photo. Some years back, a Lamborghini was crashed by hotel valet in New Delhi.

Though the car was insured and the claim settled by insurer New India Assurance, the question remains whether the hotel should be held liable for such a loss. A case was filed by Dhawan and the insurer at the Delhi State Consumer Commission. The hotel has now challenged the decision before the Delhi and National Consumer Disputes Redressal Forum which had directed the hotel to pay compensation to the Insurance Company to the tune of Rs 2,80,000 along with 12% interest from January 28, 1999, along with Rs 50,000 as litigation charges. The commission also directed Taj Hotels to pay Rs 1 lakh to Dhawan as compensation.

The hotel opined that the case be dismissed as Dhawan could not be termed as a consumer since he was not charged any money for the valet service. The hotel also stated that there was a clear disclaimer that the vehicle was accepted and parked ‘at the owner’s risk’ and it was just a service offered by the hotel.

https://www.youtube.com/watch?v=eTDMr1ZY-98#action=share

On examining the bill issued to Dhawan, the Commission noted that not only was Dhawan charged for the food but the bill also included cost of valet parking services. The case is being decided by the Supreme Court as merely stating that parking was ‘at owner’s risk’ does not absolve them of any liability.

The order of February 5, 2018 delivered by the National Commission upheld the order but lowered the interest rate to 9% on compensation awarded and to 12% for period of delay.

Source:
 
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Re: Court to decide if hotel has to pay to customer whn car is stolen or damaged by v

Not only hotels, even paid parking in many places carry a disclaimer stating they have no responsibility. In all fairness, they should take responsibility. They are getting paid for it directly or getting business from such parking.
 

Akash1886

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Re: Court to decide if hotel has to pay to customer whn car is stolen or damaged by v

Sir, a slight correction needs to be done i.e Year of incident should be 1998 and not 1988. Secondly, under no circumstance can the hotel challenge the verdict reason being the valet was working for the hotel so it does become the duty of the hotel to ensure that their person should be capable enough of driving the guest's car and in course of taking the car from porch to parking or vice-versa if any damage happens, it is the hotel's responsibility to provide the compensation to the affected party. It is not any roadside parking wherein fraud parking slips are issued and where the parking attendants and thief work together instead it is a reputed hotel and those working for it would surely be experienced enough.

In case of theft, if the car was stolen from the premises of the property then it becomes the responsibility of hotel to compensate the car owner. Maybe in 1998 there wouldn't be camera footage etc like we have today but going by the owner's complaint it is definitely the hotel which needs to compensate.

Here's a link that highlights how a thief impersonated as a valet in a Delhi Hotel: Link

Regards

Akash
 

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