Hyatt Faces Upholding of $177M Sexual Assault Verdict

A Missouri appellate court recently upheld a $177 million verdict against Hyatt Corp., involving allegations that a security guard employed by the hotel assaulted a female guest in her room. The security guard, identified as D.W., had a documented history of arrests related to sexual misconduct, which was not uncovered during Hyatt's hiring process. The incident occurred at the Hyatt Regency St. Louis at the Arch in 2016, when the victim, a sheriff's officer attending a seminar, was assaulted using a master key. The plaintiff argued that Hyatt negligently hired and supervised D.W., failing to adhere to its own policies and procedures.

The Appeal

Hyatt appealed the verdict, contesting the punitive damages awarded by the jury, totaling $149 million, alongside $28 million in compensatory damages. Hyatt argued that insufficient evidence justified the punitive damages. However, the Missouri Court of Appeals rejected Hyatt’s claims, emphasizing that substantial evidence demonstrated the company's "conscious disregard" for guest safety.

The panel noted that Hyatt hindered police investigations and failed to assist the victim effectively. As detailed by Judge James M. Dowd, Hyatt’s actions included denying the victim access to electronic key records and obstructing law enforcement’s inquiries. The court found that Hyatt's behavior during the investigation and trial illustrated a corporate priority of self-preservation over guest welfare.

The Trial

During the trial, evidence revealed that Hyatt violated its policy to assist crime victims and delayed police access to critical information, such as surveillance footage and key records. When Hyatt learned D.W. planned to leave town, the company failed to notify authorities. The appellate court found these actions indicative of corporate misconduct, which undermined both the victim’s case and police efforts.

The court also upheld the trial’s admittance of D.W.'s arrest history, which included multiple allegations of deviant sexual behavior. This evidence was deemed relevant to the negligent hiring claims, as Hyatt failed to conduct a thorough background check during the hiring process.

The Law Firms Involved

The plaintiff was represented by Davis Bethune & Jones LLC and Bartimus Frickleton Robertson Rader, whose combined efforts secured the jury’s substantial award. Hyatt retained Robertson Law Group for its defense. These law firms played crucial roles in shaping the litigation and appeal strategies, ultimately influencing the outcome of the case.

For more information about these firms, visit Davis Bethune & Jones LLC, Bartimus Frickleton Robertson Rader, and Robertson Law Group.

What’s Next?

The verdict sends a strong message to the hospitality industry regarding the repercussions of failing to prioritize guest safety. While Hyatt may pursue further appeals, the judgment reinforces accountability measures for corporate negligence.

This case highlights the legal and reputational risks companies face when neglecting their duty of care, particularly in hiring and supervising personnel. The affirmation of the punitive damages underscores the judiciary’s stance on corporate responsibility and the importance of enforcing policies designed to protect individuals from harm.