1. Torczyner, a diamond salesman, registered as a guest at the Hilton Hotel in D
ID: 2700963 • Letter: 1
Question
1. Torczyner, a diamond salesman, registered as a guest at the Hilton Hotel in Denver, Colorado. He placed his diamonds in the hotel safe when he did not need them for business purposes. On the last day of his visit, he removed the gems from the safe, left the hotel to make some business calls, and returned for the purpose of packing and checking out. Instead of placing the diamonds in the hotel safe, Torczyner carried them to his room. There, he was assaulted by two men who beat him and robbed him of the diamonds. Is the hotel responsible for the loss of the diamonds? Explain 1 paragraph
Explanation / Answer
Torczyner is the president and sole shareholder of Pacific Diamond Company, Inc., (petitioner) a California corporation engaged in the sale, at wholesale, of diamonds. Torczyner travels throughout the United States as a salesman of diamonds, which diamonds he carries with him. On October 17, 1969, Torczyner registered as a guest at the Denver Hilton Hotel in Denver, Colorado, for the purpose of carrying on his diamond business in Denver over the following several days. He was scheduled to depart from the hotel on October 22, 1969. During his stay, Torczyner would place the diamonds in the hotel safety deposit box provided therefor at such times as he did not need the diamonds in pursuit of his business. When Torczyner did need the diamonds for his business, he carried them in two wallets in his pockets. Torczyner had stayed at the hotel on prior occasions using the safety deposit box as a place of safekeeping for his diamonds. It appears that it was known to several Denver Hilton Hotel employees that Torczyner carried diamonds of considerable value.
On the morning of October 22, 1969, Torczyner removed his gems from the hotel safe and left the hotel to make some business calls. He returned to the hotel at about 1 p.m. for the purpose of packing and checking out. The hotel had been informed as to his departure plans. Instead of placing the diamonds in the safety deposit box and then going to his room, Torczyner carried the diamonds to his room. Upon entering his room, Torczyner was assaulted by two men who beat him and robbed him of the diamonds. The diamonds had an invoice cost to Pacific Diamond of $150,012.39.
Pacific Diamond filed suit in San Francisco against the Hilton Hotel Corporation (real party in interest), a Delaware corporation which operates the Denver Hilton, for damages arising out of the diamond robbery.
After issue was joined in the trial court, petitioner moved for a bifurcated trial on the issues of whether Colorado or California law was the applicable law and the proper construction of the applicable law to the facts as recited above. The trial court granted the motion.
Ultimately, the trial court held as follows:
1. California law is the applicable law;
2. Under California law, $250 is the maximum recovery that plaintiff may have; and [85 Cal. App. 3d 875]
3. If Colorado law is the applicable law, then $5,000 is the maximum recovery plaintiff could secure.
Petitioner contends in this proceeding that either
1. Colorado law is the applicable law and that under Colorado law, Hilton is liable Without limitation as to damages either upon
(a) strict liability under the common law doctrine of innkeeper's liability; or
(b) for its own negligence under the facts of this case; or in the alternative
2. The limitation upon liability of an innkeeper for its own negligence provided by the statutes of California or Colorado, whichever may be the applicable law, is unconstitutional.
Thus, petitioner argues, it is entitled to proceed to trial on a cause of action For the full amount of its provable loss and damages.
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