Hotel owners and operators across the country face increasing exposure from violent crime tied to on-site bars, shared parking areas, and third-party tenants. A recent $5.5 million negligent security settlement secured by The Haggard Law Firm arising from a Riviera Beach, Florida hotel property illustrates how operational shortcuts, informal security practices, and blurred ownership structures can create catastrophic liability—even when management believes risk has been outsourced.
On February 14, 2023, a 28-year-old patron was shot and killed outside a bar operating beneath The Sands Hotel in Riviera Beach. The incident followed a confrontation with an individual known to management for causing disturbances on the property. Despite a documented history of violent crime linked to the bar, the property lacked trained, uniformed security and relied instead on informal “patrols” by untrained individuals connected to ownership.
What makes the case especially instructive for hotel operators is what emerged during litigation: the same family controlled both the property owner and management company, personally oversaw security decisions, and installed a non-professional associate to manage safety operations. That structure eliminated any legal separation between entities and allowed plaintiffs to establish that knowledge of risk—and failure to act—was shared across all parties.
The defense argued that the parking lot where the shooting occurred was owned by the city and therefore outside their responsibility. Evidence showed otherwise. Courts and juries consistently view security responsibility through the lens of foreseeability and control, not property lines—particularly when a hotel chooses to host a high-risk tenant such as a bar.
The case ultimately resolved for $5.5 million after plaintiffs’ counsel refused to accept a $1 million primary insurance payout and successfully challenged an excess carrier’s attempt to deny coverage based on technical distinctions between affiliated entities.
For hotel managers and operators, the takeaway is clear:
- Bars and nightlife tenants materially increase security obligations
- Informal or untrained security measures do not satisfy industry standards
- Ownership and management overlap can expand—not limit—liability
- Insurance coverage disputes are common after violent incidents
- Post-incident fixes do not shield against pre-incident failures
As violent crime continues to intersect with hospitality properties, this case serves as a stark reminder that security is not an expense line—it is a risk management function with existential consequences.
This story offers hotel operators a rare, inside look at how negligent security cases are built, how defenses fail, and what operational decisions most often lead to eight-figure exposure.