Question: You own a Hotel in a quiet neighborhood west of the City of Boston. Except for an occasional disturbance, petty theft in the Hotel room, disorderly conduct in the bar or restaurant, there have been very few instances of criminal behavior.

Facts:

You own a Hotel in a quiet neighborhood west of the City of Boston. Except for an occasional disturbance, petty theft in the Hotel room, disorderly conduct in the bar or restaurant, there have been very few instances of criminal behavior. The Hotel has an underground parking garage, which is open 24 hours, seven days a week. Although it is part of the Hotel property and owned by the Hotel, the garage is managed by a private security company. The Security Company hired was a fairly new company started by the brother-in-law of the Hotel’s President.

From a security perspective, the Hotel’s contract with the Security Company requires that there be a security presence in the garage around the clock. The Hotel also requires that security cameras and lights be placed in appropriate areas to maintain constant surveillance. These requirements are specified by written contract between the Hotel and the security company. The contract also contains an indemnification provision and liquidated damages clause in the amount of $100,000 in the event of a breach by either party.

In the last five years, there has been only one attack on a Hotel guest in the garage. Police records do not support the notion that the Hotel or garage are in a high crime area. To be sure, there have been a few minor incidents of vandalism and property damage either to parked cars or in areas of the garage such as stairways and elevators.

On September 2, 2017, a female Hotel guest is attacked at knifepoint at 7:30 p.m. while she is heading from her car to the Hotel elevator. Security came across the injured guest shortly after the attack occurred. Unfortunately, the assailant was never apprehended. The Hotel guest suffered both physically and emotionally in the immediate aftermath of the attack. And, more than a year later, she continues to suffer from PTSD symptoms related to the experience.  The Hotel guest is a resident of Maine and has filed a lawsuit in the U.S. District Court for the Federal District of Massachusetts seeking both compensatory and punitive damages against the Hotel and the Security company charged with overseeing safety in the Hotel parking garage.

Address the liability of both the Hotel and the security company for negligence in this situation. Should the Hotel be liable under the law of negligence for the injuries sustained by the Hotel guest?  Why or why not?  Should the Security Company be liable for the guest’s injuries under the law of negligence? Why or why not? A thorough analysis will focus on the legal elements for a claim of negligence as to each entity.

What additional information might be helpful in assessing the liability of the parties in this situation?