Case Study

The famous artist George Nano is invited to an Art Festival in Stratford, Ontario. During his check-in at the hotel MoMa, he specifies that he is checking one luggage and one valuable piece of art (market value $ 7,000); he will need to leave in his room for the 2 nights while in town. The receptionist at the front desk points out that the hotel does not have a safe storage, but that the rooms are generally safe, and they have not had episodes of thefts reported since the hotel opened in 2005. Returned to the hotel on the second night, Mr. Kats finds out that his piece of art has disappeared from his room and reports the incident to the concierge.

Based on the facts as outlined above:

1) What rule is applicable to this Case study: Common Law liability rule or the Ontario Statutory Limitation?

2) (Based on your previous choice, providean answer to one of the two following questions): - If you choose the Common Law liability rule, why is the hotel fully responsible if the mistake was made by the receptionist? - If you choose to apply Ontario Statutory Limitations, how much would you pay the guest for his loss?