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CONFIDENTIAL

Sep. 21, 1996

Civil Rights
Racial Discrimination
Hotel

Confidential

Settlement –  $85,000

Judge

Victor E. Chavez

Court

L.A. Superior Central


Attorneys

Plaintiff

Howard S. Rosen


Defendant

Peter A. Schneider


Facts

On Aug. 26, 1995, while attending a church outing on Catalina Island, the plaintiffs, two friends, entered the restaurant section of the defendant hotel. By prior arrangement, the plaintiffs had agreed to rendevous with other members of their church at the hotel for the trip back to the mainland. Once inside, the plaintiffs attempted to purchase a cold beverage as one of the plaintiffs had become ill. The plaintiffs were allegedly refused service by the defendant hotel's managers and the managers insisted that the plaintiffs leave the hotel. The plaintiffs refused to leave without an explanation for the behavior of the hotel managers. The plaintiffs claimed that the managers, who were allegedly intoxicated, became belligerent and verbally and physically abusive, referring to the plaintiffs as "niggers" to the restaurant's bartender. The defendants denied that they were ever physically abusive or that they made any racial remarks. The hotel managers eventually called the police and attempted to have the plaintiffs arrested for being drunk and disorderly and for trespass. The managers were arrested under Penal Code º422.6 for the use of force and threats to interfere with the plaintiffs' exercise of their civil rights. After posting bail, the managers fled to their native Ireland to avoid criminal prosecution. The plaintiffs brought this action against the defendants based on racial discrimination (violation of Civil Code ºº51, 51.5, 51.7 and 52.1), negligent hiring, instruction, supervision and employment, intentional infliction of emotional distress, negligent infliction of emotional distress and assault theories of recovery.

Settlement Discussions

The plaintiffs made a C.C.P. º998 settlement demand for $500,000. The defendants made a C.C.P. º998 offer of compromise for $60,000.

Injuries

The plaintiffs alleged they sustained emotional distress as a result of the incident.

Other Information

The settlement was reached approximately nine months after the case was filed. SETTLEMENT CONFERENCE: A settlement conference was held on July 31, 1996 before Judge Schoettler of JAMS/Endispute resulting in the reported settlement.


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