Yht Realty Corporation v. The Court of Appeals

Summary

This case establishes that hotels cannot avoid liability for loss of guests' belongings through contractual waivers, as such clauses violate Article 2003 of the Civil Code and public policy. Australian businessman McLoughlin lost money from Tropicana Hotel's safety deposit box when hotel employees negligently allowed an unauthorized person to access it multiple times. The Supreme Court affirmed that hotelkeepers have a duty to provide security that cannot be negated by contractual stipulations, and found the hotel and its negligent employees solidarily liable for damages. The decision reinforces that the hotel business is imbued with public interest and that liability waiver clauses in safety deposit box agreements are void as against public policy.