Lozano v. Hilton LAX Hotel:
Hadsell Stormer Renick & Dai LLP, represented employees in class action lawsuits against five hotels for violation of a City of Los Angeles ordinance requiring hotels in the Los Angeles International Airport (LAX) area to pay their employees all service charges collected from hotel customers. The City of Los Angeles passed the ordinance to address the growing practice of hotels charging guests — particularly banquet and room service customers — a mandatory charge of up to 22 percent on top of the traditional hotel bill for food and services.
The hotels refused to comply with the ordinance and challenged it on the ground that the City of Los Angeles lacked the authority to regulate this issue. The trial court accepted their argument and dismissed the lawsuits. On review, the court of appeal disagreed and upheld the validity and enforceability of the ordinance. As a result of the ruling, hundreds of employees at five hotels adjacent to LAX were able to proceed with their lawsuits to collect all service charges imposed on customers by the hotels since 2007.
On July 13, 2012, the trial court granted the plaintiffs’ motion for class action certification of the case against Hilton LAX.
A notice providing information regarding the class action was sent to members of the class on Oct. 16, 2012. (You can view the class notice here.) If you have any questions, please contact our office at 888-654-6156.
You can view the complaint here.