Scenario Question: What Would You Do? Assume you are a mediator whose job is to

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Scenario Question: What Would You Do?

Assume you are a mediator whose job is to help opposing parties limit the expense and time of going to trial in matters of personal injury. In your current case, Jeremy and Anne Hunter have filed a personal injury suit against the Fairview Mayton Hotel's ownership group and its franchisor, Mayton Hotels and Resorts Inc. According to the Hunters, they checked into their suite at the Fairview Mayton, one of l50 independently owned, franchise—affiliated properties, on a Friday night. Their daughter Susan, who was 8 years old at the time, opened a sliding patio door, and upon seeing the outdoor hot tub that was part of suite, asked her parents if she could get in. They told her yes. Upon entering the tub [it is agreed by both parties that Susan ““jumped" into the hot tub], she suffered third— degree burns over 80 percent of her body, and her facial features were permanently disfigured because the water in the hot tub was l60 degrees Fahrenheit, not l02, the maximum recommended by the tub's manufacturer, and well above the l05—degree maximum dictated by local health codes. An investigation determined that the hot tub safety switch, designed to prevent accidental overheating, had been bypassed when some wiring repair was performed by the hotel's maintenance staff. The Hunters are also suing the franchise company because a mandatory inspection of property safety, which, as part of the franchise agreement was to have been performed annually, had not been done in the three years prior to the accident] The hotel's insurance company takes the position that Susan's parents gave her permission to use the tub, despite a written warning on the side of the tub saying it was not to be used by persons under age l4, and thus they bear a majority of the responsibility for the accident. The Mayton franchise company's insurance company states it is not responsible for the acts of its franchisees, and thus cannot be held accountable. The hotel's manager has been terminated. The Hunters, whose lawyer has accepted the case on a contingency basis, is suing for a total of $5 million.

Please use the following scenario to answer ALL three of these questions. Please provide detailed and very thoughtful answers only. Thank you!

1. What would you recommend the Fairview Mayton's insurance company do? Why?

2. What would you recommend the franchise company's insurance company do? Why?

3. What would you recommend the Hunters do?

Explanation / Answer

What I would DO

1. Recommendation to Fairview Mayton's insurance company:
Since the hotel is under the franchise of the Fairview Mayton which is a big chain of hotels on a franchisees contracts, it is important for Fairview Mayton to preserve its brand and hence not helping this particular franchise may create an unrest among other franchisees and may harm the reputation of Fairview Mayton among the franchises which may not be good for their business. Fairview Mayton should design a proper compensation plan which Hotel franchisee should offer to the affected. Compensation plan could be decided with discussions among all the three parties until a consensus is reached.

2. Recommendation for Franchise company's insurance company:
Since the proper instructions were declared in the bathroom regarding the use of bathtub, the girl should not be using the bathtub. But since the temperature of the water was well above the accepted level, it is a mistake on hotel's side. Had it not been the girl child and an elder person the hotel would surely be a problem. Hotel insurance company should design a compensation plan which will be accepted by the affected people and depending on which they would refrain continuing the lawsuit.

3. Recommendation to Hunters:
The accident happened due to the mistakes involving both the hotel and the family. if lawsuit id continued it is possible that result may take any side looking at different parameters involved. it will be better to come to an acceptable compensation plan which will be in the interest of all the involved parties.

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