Mathias v. Accor Economy Lodging, Inc.

347 F.3d 672 (7th Cir. 2003)

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Nature of the Case

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Facts

Bedbugs were discovered in D’s motel and the cost to fix the problem was $500. Even as problems mounted, with refunds being given to guests, D did not resolve the problem. Further incidents of guests being bitten by insects and demanding and receiving refunds led the manager to recommend to her superior in the company that the motel be closed while every room was sprayed, but this was refused. The infestation continued with some guests having to be moved from room to room to room. Desk clerks were instructed to call the 'bedbugs' 'ticks,' apparently on the theory that customers would be less alarmed, though ticks are more dangerous than bedbugs because they spread Lyme Disease and Rocky Mountain Spotted Fever. Rooms that the motel had placed on 'Do not rent, bugs in room' status nevertheless were rented. P checked into the motel in November and were given a do not rent until treated room. Ps brought this diversity suit governed by Illinois law against affiliated entities (which the parties treat as a single entity, as shall, we) that own and operate the 'Motel 6' chain of hotels and motels. One of these hotels (now a 'Red Roof Inn,' though still owned by the defendant) is in downtown Chicago. Ps, a brother, and sister, were guests there and were bitten by bedbugs. Ps claim that in allowing guests to be attacked by bedbugs in a motel that charges upwards of $100 a day for a room and would not like to be mistaken for a flophouse, D was guilty of 'willful and wanton conduct' and thus under Illinois law is liable for punitive as well as compensatory damages. The jury agreed and awarded each P $186,000 in punitive damages though only $5,000 in compensatory damages. D appealed.