Hotels Cannot Exclude Valet Parking Liability

1. Background

A recent landmark decision of the Supreme Court reinforces the duty of care and liability of a Hotel for property entrusted to it by guests, customers and visitors.

On 14 November 2019, the Supreme Court passed its decision in Taj Mahal Hotel v United India Insurance Company (Civil Appeal No 8611 of 2019) holding, inter alia, that a Hotel, has a duty of care and cannot exclude its legal liability for breach of that duty to persons who entrust vehicles to the Hotel for parking by their valets. The Supreme Court confirmed earlier decisions stating that upscale hotels have a higher standard of care than others.

2. Facts of Case

On the night of 1 August 1998, the Complainant No 2 (Hotel Patron) visited the Taj Mahal Hotel (Hotel) at 11 pm.