Subtitle: 
Mulligan's Restaurant in Colorado paid $873,380 in damages to a waitress as a result of a sexual assault by the supervising manager. The manager had a history of prior sexual assaults that the restaurant should have known about. The restaurant's insurance carrier was not responsible for reimbursing any of these damages to the restaurant.

A waitress at Mulligan’s restaurant was sexually assaulted by the supervising manager at the restaurant. The manager was also the son and nephew of the restaurant owners.

Important Tip Restaurants and other small businesses need good policies in place to protect against large damage awards when bad things happen. And, they need to follow these policies by enforcing them and investigating complaints thoroughly. Background checks for supervising employees would also be a good idea in many situations.

The waitress was awarded total damages from the restaurant of $873,380.16, including $50,000 in punitive damages because the court found that the conduct was willful, wanton and reckless and the restaurant “knew full well what was potentially going to happen with the restaurant manger and the female employees and did not care.”

The Court found evidence that the restaurant manager “had a history of committing violent crimes and had a propensity for mistreating and assaulting female employees,” and that Mulligan's knew or should have known of his dangerous propensities because of his reputation among its employees for his violent and abusive demeanor. Mulligan's also knew or should have known of the restaurant manager’s abusive and violent conduct toward women he was supervising because, at the time of the assault, he was under investigation for no fewer than three other sexual assaults.

Because the restaurant manager’s conduct was foreseeable and not unexpected on Mulligan’s part, it did not constitute an occurrence or accident under the insurance policy.

Additional Information
Important Tip: 
Restaurants and other small businesses need good policies in place to protect against large damage awards when bad things happen. And, they need to follow these policies by enforcing them and investigating complaints thoroughly. Background checks for supervising employees would also be a good idea in many situations.
Marketing copy: 
employee matters