ST. LOUIS — The Missouri Court of Appeals-Eastern District ruled that Hyatt is liable for a jury award of $177 million in damages for a sexual assault that occurred in a St. Louis hotel in 2016.
Previously, a St. Louis jury awarded the damages to Shannon Dugan, a New Jersey sheriff’s deputy, who was sexually assaulted in her hotel room at the Hyatt Regency in downtown St. Louis in 2016.
The verdict, which included $28 million in compensatory damages and $149 million in punitive damages, followed allegations of negligent hiring, training and supervision by Hyatt, culminating in what the court described as repeated policy violations and a failure to protect guests.
Dugan was in St. Louis for a professional seminar and was attacked in her room by Hyatt security guard D.W. on the night of April 19, 2016.
Evidence presented at trial revealed D.W. used a master key to enter her room without authorization, bypassing the night latch with the assistance of hotel engineering staff under false pretenses.
Later that night, D.W. returned alone and assaulted Dugan while she slept.
Hyatt’s internal policies require wellness checks to be conducted by two security personnel, yet D.W. was dispatched alone.
Despite clear breaches of protocol, Hyatt failed to alert police or fully cooperate with their investigation.
Security camera footage and lock interrogation records confirming D.W.’s unauthorized access were withheld from authorities until subpoenas were obtained.
During the trial, it was revealed that Hyatt’s background check on D.W. was insufficient. While an FBI check cleared him for employment, the process failed to uncover multiple prior arrests and investigations for sex-related offenses, including charges for deviate sexual assault and harassment.
D.W.’s history was later confirmed through testimony and depositions. A criminologist testified that D.W. exhibited "opportunistic predator" behavior, and Hyatt admitted that if his criminal history had been known, he would not have been hired.
Hyatt’s liability extended beyond hiring lapses, the court document states.
Testimony from Hyatt's own employees revealed that training on critical safety protocols, such as the two-person rule for wellness checks, was inadequate. The jury heard evidence of Hyatt’s post-incident mishandling, including refusal to assist Dugan with records needed for the police investigation and failing to inform authorities when D.W. fled town the day after the assault.
Dugan testified about the traumatic aftermath of the assault, which left her with severe post-traumatic stress disorder. Friends, family and colleagues described her transformation from a confident, outgoing individual to someone who is withdrawn and distrustful.
Hyatt appealed the verdict on multiple grounds, arguing errors in evidence admission and jury instructions.
The court rejected these claims, emphasizing the relevance of D.W.'s criminal history and the sufficiency of the jury instructions, which accurately reflected the hotel’s duty to supervise its employees, Jugdge James M. Dowd wrote in the opinion.
The court noted that Hyatt's own policies and repeated admissions during the trial undercut its arguments.
Attorneys for the appellant are Susan F. Robertson and Jonathan Z. Bickel.
Attorneys for the respondent are Scott S. Bethune, Travis W. Shumate, Kevin D. Buchanan, Edward D. Robertson Jr. and Edward D. Robertson III.
Attorneys for the parties declined to comment on the case.
Missouri Court of Appeals Eastern District case number: ED111485