Assume you are the owner of the Do Drop Inn. Prior to opening the business what corporate form did you chose and why?

            Beth and Ricardo, a young, professional couple in their mid-20’s, had been dating for about approximately one year. Each lived at home, worked hard, saved, and planned a future together. They hoped to be wed in the next few months.

After dinner at one of New York City’s best restaurants the couple decided to spend the night together at the Do Drop Inn, a local motel not too far from where each lived. The motel was known for its short stay policy. The couple had been there a number of times in the past. They asked for and received their favorite room; a secluded spot that faced a dimly lit parking lot.

            The couple was in the room for about ½ hour when two men climbed in through the window and robbed and assaulted Beth and Ricardo. Within moments after the attackers fled Ricardo called the front desk and told the desk clerk they were robbed at gun point. The clerk called the police, and soon after the police arrived Beth and Ricardo were taken to a local hospital where they were treated and released.

            of the room, and poor room key control by the motel. Ricardo had told the police that soon after the couple entered the room he opened the window a few inches as the room tended to get stuffy. He also mentioned that he had trouble opening the window. Fortunately, finger prints were recovered, and the two men were arrested. Ironically, one of the attackers was a former motel employee whose duties included building maintenance. The owner of the motel told the police that there had been an ongoing problem with the windows in many of the rooms, and that motel employees and an outside repair company were unable to correctly fix the windows.

            As a result of the attack Beth and Ricardo were out of work for about 2 weeks. Beth had various scars on her face and stomach and a broken jaw. Ricardo sustained soft tissue neck and back injuries. Each has had trouble sleeping and concentrating. The couple broke up two months after the attack and continue to be sad that their relationship did not work out.

            Beth and Ricardo consulted an attorney to seek advice as to their rights, if any, to monetary compensation in a civil lawsuit as a result of the attack.

  1. Assume you are the owner of the Do Drop Inn. Prior to opening the business what corporate form did you chose and why?
  2. What are the tax implications, if any, of the corporate form chosen?
  3. Assume that the Do Drop Inn is a franchisee of the international hospitality chain La Casa Magnifica. La Casa Magnifica is based in Chile; they also have an office in New York City. Are there any agreements/contracts that come into play in situations like these? If there are, describe the agreement/contract and how it might help the Do Drop Inn or hurt the Do Drop Inn.
  4. Identify the potential defendants and describe what theories of liability may be asserted against each potential defendant and why
  5. You opinion as to the jury’s monetary award if any of the plaintiffs prevail at trial. Be sure to support our opinion.
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