Friday, August 23, 2013

Liabilities to consider when managing a nightclub


When it comes to running a nightclub, one would have to consider many things. Since a nightclub is prone to lawsuits, liabilities are often the biggest concerns. As an aspiring nightclub owner, I felt that it was my duty to discover some of the liabilities that are impacting the nightclub industry today. For this blog post, I will share with you 3 podcasts that I believe is helpful for anyone in the nightclub/bar industry and I will also discuss about how I plan to utilize what I learned in these podcasts with my business plan.

Nightclub Security Consultants – Episodes 2-3

This podcast was based on a discussion between Robert C. Smith, a nightclub industry expert, and Manny Marquez, the host of the Nightclub Security Consultants podcast, about the nightclub industry and how one could protect his/her nightclub business from a civil lawsuit. An example that was given in the podcast was about a woman who slipped on a lime wedge and sued the bar 2 years after the incident occurred. Although the decision of the case was not discussed, the bar owner was unable to make a viable argument, as there was no proof that corrective actions were made. Since so much could happen in a 2-year span, the bar was unable to recall the incident in full detail, which gave the plaintiff an advantage in the lawsuit. 


As seen in the example above, the bar was prone to a civil lawsuit the moment the woman slipped. Even if the possibility of a lawsuit is unlikely, taking corrective actions after an incident occurs is a good practice. As an aspiring nightclub owner, I must be adamant about documenting all incidents in great detail and gather important information, such as the victim’s name and the video footage of the incident.  By documenting an incident, this would show proof to the court that I am aware of what happened and that my business did everything accordingly to assist the woman as needed. Even if I was fighting a losing battle, showing proof of taking corrective actions through a thorough documentation could limit the dollar amount that is requested by the defendant.

However, I feel like the best way to handle a case like this is to make sure that it never occurs at all. I plan to do this by investing in training programs to educate my employees on how to work responsibly. By giving them the proper tools, they should become more than capable to uphold a high standard in which I hope for my business to achieve. I also understand that my display of great leadership would be crucial for upholding my business standards. If I manage my business with malpractice, my actions will only reflect on my employees, making my business even more vulnerable to liabilities.

Nightclub Security Consultants – Managing a Major Violent Incident

This podcast was based on a discussion about different procedures one should follow in order to manage a major violent event that occurs in a bar/nightclub venue. According to Robert, the industry expert in this podcast discussion, a major violent event is usually something serious and substantial that requires the involvement of the police. It can be as shocking as a shooting or as horrifying as a bombing. After reviewing this podcast, here are some things that I found to be useful for my business plan.

As obvious as it may sound, I will always make sure that an employee from the venue calls 911. Many times, it is usually a guest that would make the emergency call. However, a call from an employee at the venue is crucial for the appearance of my business. As discussed in this podcast, if an employee from the venue fails to make an effort to contact emergency services in a timely manner, the business could appear to be responsible for any consequential damages in court. Of course, this is assuming that the business lacks preparation for responding to serious incidents. As a business owner, I will need to make sure that my employees are trained to make that crucial call, even if it appears to have already been taken care of.

Another concern that I will have as a nightclub owner is to make sure that all exits are clear and well lit. This will help reduce congestion and provide better safety for my customers in case of an emergency. I will also need to invest in modern surveillance cameras to capture and replay incidents that occur. The recorded footage would not only protect my business in a litigation, but it would also help the authorities capture the suspect and prevent any future harm.

If a major violent event resulted in bloodshed or death in my nightclub, I understand that certain procedures should be followed in order to assist with the investigation. First, I will shut down the business for the night. Second, I will make sure to block access to the site of the incident until the proper authorities arrive. Lastly, I would wait for the consent of the highest person in charge of the scene before I begin to pursue with any proper maintenance of the venue.

Entertainment Law Update – Episode 33

(This podcast provides a discussion on several newsworthy topics that occurred in the entertainment industry. In this particular episode, issues dealing with infringement, privacy rights, and personal damages were covered.)

One topic that was discussed in this podcast was about a gay couple whose photo was used in an attack advertisement against Colorado legislatures. Since the photo was copyrighted, the infringers argued that it was fair use, as they were not profiting from the photo and were only using it in the form of “political speech.” As the discussion went on, it was clear that the issue was not about the copyright, but it was about the association that was made to the photo without the consent of the owner. As a result, the gay couple is planning to hire a lawyer to settle the case.

Although this appears to have no relevancy to the nightclub industry, this does bring up a concern. What if someone comes into my venue to take pictures of an artist who is performing a live show when the artist requests that no photos are to be taken? Since this issue is different in every case, careful planning with the act’s manager would be crucial for the preparation of the show. As a nightclub owner, I will have to learn how to balance the interests of the act with the interests of the audience.

Another topic was discussed in this podcast was about a woman from Oregon who is suing Justin Bieber for $9 million, claiming that his concert was the cause of her hearing loss. During one of his acts, Justin Bieber pointed into the direction of the crowd, causing an uproar of excitement that exceeded above an average noise level for an enclosed venue. According to the plaintiff, the wave of noise struck both of her ears and damaged her hearing.

In the nightclub industry, playing music at a high volume is essential for transmitting the energy from the speakers to the customers. Not only is the sound of the music enjoyable for the customers, but being able to feel the music is part of the excitement of being in a nightclub. However, I still must be concerned about the volume in which the music is played. To help protect my nightclub from any liabilities dealing with hearing loss, I will hire a professional to measure the sound pressure levels during sound checks in order to make sure that the volume of the music being played is within reasonable parameters.

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