Question

Consider the brief facts of Mathias v ACCR Economy Lodging, Inc., 347 F.3d 672 (7th Cir. 2003) and answer the questions that follow.

The Mathiases checked into a Motel 6 and were bitten extensively by bedbugs. Upon investigation, they learned that the managers and owners of the motel had been warned by guests, employees, and exterminators alike that there were bedbugs in the rooms. The exterminator offered to spray the motel each year for $600, but the motel refused. As a result, the bugs remained and propagated. The Mathiases filed suit, seeking punitive damages. The trial court awarded them $5,000 compensatory damages and $186,000 punitive damages. The motel appealed the punitive damage award as excessive.

1. Do you believe the award is excessive? Why or why not?

2. Do you believe the punitive damages award should be reversed? Why or why not?

3. Why do you think the hotel wants to have a court decision on this suit?

4. As a business manager or owner, what do you believe is the most important lesson we can take away from this chapter?

Answer 1

1. I believe that award is not excessive. The reason is that, Motel 6 owners and managers had previously also received complaints about bedbugs in the room and authorities has even refused for spray for $600 as advised by exterminator. This means they are not concerned about guest feedback and are taking it very casually and since guest is paying for everyday stay. Hence, heavy penalty was very much needed for Motel 6 authorities so that they take this as a lesson and will definitely take customer's feedback and suggestions seriously in the future.

2. I don't think that punitive damages amounting $186,000 should be reversed. Because, this will be a lesson for Motel 6 authorities to take customer's feedback and suggestions seriously in future. Because this is customer's hard earned money which he is paying while staying in their hotels and Motels. Also, this will set a precedent for other hotels and Motel owners to take their customer's complaints and feedback seriously or else law will take its course of action. This in fact, also increases awareness among all consumers who are using different services about their rights being as a consumer.

3. I think hotel wants to have court decision on this suit, since every one has right to excess their legal option and in my opinion, might be hotel owner thinking to reduce the monetary loss caused due to trial court decision, which came in favour of Mathiases and also he might be thinking to save his and his Motel 6 reputation by taking legal course of action.

4. As a Business Manager or Owner, I think we must learn a strong lesson, that we cannot afford to take our customer's complaints and feedback's lightly and we should be aware that, today's customer's are very much aware about there rights as consumer's for different services and they know whom to approach in case there complaints as consumer's are not taking seriously. There is famous saying, " First impression is the last Impression" . In fact, we as Business Managers and Owners should take all feedback and complaints of customer's seriously for providing excellent to them.