BED BUGS & LAWSUITS

Bed bug lawsuits have been filed against hotels, furniture rental firms, Laundromats and dry cleaners. Strict guidelines must be implemented to prevent financial loss that could result from the lawsuits. A single customer claiming to be a bed bug victim can cost a company untold money in lawsuits and loss of business. Insurance often fails to cover all your litigation costs (punitive damages are not insurable). Punitive damages are awarded when the court finds the defendant has acted in an outrageous manner and should be punished for the action and deterred from repeating it in the future.

Employers should take proactive steps to shield themselves from bedbug-related lawsuits. There’s no foolproof way to keep bedbugs out, but having written policies in place and taking other precautionary steps may help shield companies. Mattress and box spring covers along with regular spraying could be helpful for companies if sued. Non chemical sprays can help avoid adverse reactions to pesticides.

Firms should also create written plans about how complaints or evidence of infestation will be handled. The effort should involve senior management, human resources and facilities management.

It is estimated bed bug reports cost the Australian tourism industry $75 million every year. Most cases do not receive public attention and often are settled out of court due to unwanted publicity.

To avoid lawsuits and negative publicity, most property owners settle bed bug claims out of court-at much less than the reported one of $150,000 from Helmsley Enterprises in 2004. On the advice of lawyers and insurers, many hoteliers are initiating bed bug lawsuit plans.

A quick summary of recent cases would convince any property owner of the rationale behind doing so:

2003 - $382,000 punitive and compensatory damages awarded to two Chicago plaintiffs

2004 - 45% rent abatement for six-months to a New York apartment tenant

2007 - A woman is claiming infestation by hundreds of bed bugs in a motel during her recuperation from breast cancer. Rose M. Pagley-Brown is suing the Stone Motel in Arkansas, alleging “pain and mental anguish, embarrassment and humiliation, medical bills and expenses” from countless bug bites and visible bugs in her bed.

2007 - Plaintiffs claimed that bed bug pesticide spraying at Wichita State University made them ill.

2007 - Atlanta family sues Aaron Rents, a furniture sales and rental firm, which operates 515 stores in 39 states, for $250,000 in damages. They claim the living room suite they rented from Aaron Rents was infested with bed bugs.

2008 - Napoleon Township, MI: Family sues the Storer YMCA camp claiming their son brought bed bugs home with him from camp.

2008 - Three apartment tenants in Chicago sue for bedbug injuries.

2008 - An opera singer initiated a lawsuit against the Hilton Corporation for $6 million. The alleged injuries involve over 150 bed bug bites.

2008 - Cherry Hill, NJ: Jury awards couple $49,000 finding the bedroom furniture purchased from J.C. Penney was infested with bed bugs.

2009 - Midland Motor Inn, Staten Island, NY: Eleven tenants sued the owner over bed bug infestation.

2009 - Rent-a-Center, Nashville, TN: Sued for $575,000 claiming furniture rented was infested with bed bugs.

2009 - La Coquille Motel, Virginia Beach, VA: Motel sued for $100,000 for compensation of medical treatment due to a bed bug infestation.

2009 - Portland State University: Students reported a severe infestation in a campus apartment complex. Many students are suing for damages and their belongings.

2009 - Nevelel Hotel, New York: Chicago woman suing for $20 million after waking up with over 600 bed bug bites.

2010 - University of Wisconsin, Madison, Wisconsin: Woman sues the University of Wisconsin System (the whole state college system, not just one college) over bed bug bites she sustained while staying in a University of Wisconsin campus hotel and conference center in 2007.

2010 - Venice Holiday Inn, Venice, FL: Client awarded money from Venice H.I., Inc. and MHC Hospitality Operating Company. Venice H.I. owned the Venice Holiday Inn where the plaintiff stayed when he was attacked until 2006 when the property was sold. MHC Hospitality Company was the management company hired at the time to operate the hotel. The jury found the two defendants negligent and awarded money to cover past medical expenses, lost clothing and missed work time. The jury was obviously moved by the attorney’s description of the anxiety this experience caused if you consider the plaintiff lived with bed bugs for only one night. Had he brought bed bugs home with him, the costs in terms of personal trauma due to continuing bed bug bites, as well as the expenses of bed bug treatment, would probably been much higher. The plaintiff’s lawyer suggested the infestation would be obvious to housekeeping staff if they took the time to look. Hotel housekeeping and maintenance staff do need to be trained to recognize and look for the signs of bed bugs.

2010: Steeplechase Apartments, Cockeysville, MD: The lawsuit against Hirschfield Management of Connecticut, the owners of the Steeplechase Apartments, seeks compensatory damages for clients’ expenses, including loss of their possessions and the deposit on the apartment. The suit claims the complex owners knew about the problem when they rented the apartment and so they are seeking punitive damages as well.

2011: Waldorf Astoria, NY, NY: The Waldorf-Astoria sued with a third lawsuit by a guest who claims she was ravaged by bedbugs during a night at the tony hotel. The plaintiff visited the Waldorf during a trip to NYC with her family in August 2007. That makes this the earliest known incident of bedbugs at the hotel and suggests the Waldorf has been struggling with an infestation for much longer than previously believed. (The other two lawsuits are the result of bedbug bites from 2010.) Tendler wants $10 million from the hotel to compensate her for what the bedbugs did to her, and says she needs plastic surgery.

2011—Hoover, AL: LMS Real Estate Investment Management, LLC, Balboa Investment Group V and Alabama Professional Services (pest control company) are sued by tenants of rental units at The Chateau Apartments. Plaintiffs allege they failed to disclose unsafe conditions (bedbugs) to tenants.

2011: Des Moines, IA: Tenants of apartment buildings for the elderly and disabled filed court papers alleging managers knew about a massive bedbug infestation for more than two years but refused to warn tenants or to properly treat it until they were sued. Plaintiffs seek money for back rent, lost property and other hardships suffered because of the bedbug problem.

This is just a small sampling of lawsuits due to bed bugs. While no one can predict the outcome of individual cases, most lawyers indicate being proactive helps should it occur. Use of mattress covers, box spring covers, regular non chemical pesticides (some clients are allergic to chemicals) as well as written directives for staff on how to manage problems can go a long way to controlling jury awards.