The California Innkeeper Statute Defense

An important legal defense available to operators of hotels in California1 - but one which is relatively unknown to the plaintiffs' Bar -- is the so-called "Innkeeper Statute", codified at California Civil Code sections 1859 and 1860. Basically, these sections (originally enacted in 1872 and subsequently amended) limit the liability of a hotel operator to either $1,000 or $500, in the event that a guest's personal valuables are stolen, damaged or otherwise lost while a guest at the hotel.

Section 1859: Section 1859 refers to guests' property of remaining in their possession in the rooms of the inn or hotel. Gardner v. Jonathan Club (1950) 35 Cal.2d 343, 351. This section limits the liability of a hotel operator for losses of or injuries to a guest's personal property: "...in no case shall such liability exceed the sum of one thousand dollars ($1,000) in the aggregate....unless he (the operator) shall have consented in writing with the owner thereof to assume a greater liability."

Section 1860: This section refers to articles placed in the hotel's safe in the possession of the innkeeper. Gardner, supra, at 351. In today's hospitality industry, most hotels offer safe deposit boxes at or near the front desk, wherein guests can temporarily lodge their valuables. The availability of these safe deposit boxes is generally posted on a sign behind the door in each guest room. Additionally, some hotels also post this information in the guest information directory in each guest room.

Section 1860 provides in pertinent part:

"If an innkeeper, hotelkeeper...keeps a fireproof safe and gives notice to a guest...either personally or by putting up a printed notice in a prominent place in the office or the room occupied by the guest...that he keeps such a safe and will not be liable for money, jewelry, documents, furs, fur coats and fur garments, or other articles of unusual value and small compass, unless placed therein, he is not liable, except so far as his own acts shall contribute thereto, for any loss of or injury to such articles if not deposited with him to be placed therein, nor in any case for more than the sum of five hundred dollars ($500) for any or all such property of any individual guest,...unless he shall have given a receipt in writing therefore to such guest..." (Emphasis added.)

Although the section refers to a "fireproof safe", case law establishes that this includes safe deposit boxes, of the type commonly available in hotels. In...