www.loubar.org 6 Louisville Bar Briefs PROFESSIONAL EXCELLENCE Civil TVPRA Litigation and Emerging Risks for the Hospitality Industry Riley Grant Louisville’s continued growth as a national destination for tourism, major sporting events, festivals and professional confer- ences has driven significant expansion in its hospitality sector. In 2024 alone, tourism generated approximately $4.4 billion for the local economy, reflecting the scale and den- sity of hospitality activity across the region. That growth was on full display last month during the 152nd Kentucky Derby, which drew hundreds of thousands of visitors and strained lodging, staffing and security re- sources citywide. While these developments are undeniably positive, they also heighten legal exposure for entities operating in event-driven hospitality environments. One area in particular, civil litigation under the Trafficking Victims Protection Reauthori- zation Act (TVPRA), has undergone rapid evolution, reshaping risk considerations for hotels and their onsite partners. I. TVPRA Civil Liability and the Shift Toward Enterprise Litigation Although the TVPRA was enacted primarily as a criminal enforcement framework, its civil cause of action has expanded sharply in recent years. Over the past five to six years, filings under 18 U.S.C. § 1595 have increased substantially, with well more than 1,000 civil cases filed nationwide and a disproportion- ate share concentrated in recent years. What was once a niche remedy has become a recurring feature of federal civil dockets, particularly in suits targeting lawful commercial enterprises. Most civil cases pro- ceed not with allegations that a defendant directly trafficked the plaintiff, but under a beneficiary theory of liability. Plain- tiffs commonly allege that hotels and related businesses financially benefited from traffick- ing ventures by renting rooms or providing services in circum- stances where trafficking indicators were allegedly present. Courts have consistently rejected strict liability, emphasizing that gen- eralized awareness of trafficking risks within the hospitality industry is insufficient. The inquiry instead turns on whether plaintiffs plausibly allege participation in, and benefit from, a venture that advanced the specific trafficking activity at issue. As filings have increased, TVPRA litigation has taken on an increasingly enterprise level char- acter. Plaintiffs frame trafficking not as an iso- lated criminal act, but as a risk intertwined with operational practices and commercial relation- ships. This evolution has expanded the range of defendants named in civil actions and sharp- ened the focus on corpo- rate structure, delegated authority and control, reshaping how civil exposure is assessed across the hospitality ecosystem. II. Anatomy of a TVPRA Civil Claim Against Hospitality Defendants Civil TVPRA claims against hospitality defendants generally follow a familiar struc- ture, regardless of the specific property or brand involved. Plaintiffs rarely allege that a hotel is directly engaged in trafficking. Instead, claims typically proceed under the statute’s beneficiary liability provision, asserting that the defendant knowingly benefited from participation in a venture en- gaged in sex trafficking, most often through room rental revenue or related services. Courts evaluating civil TVPRA claims have increasingly converged around a common pleading framework. To state a claim for beneficiary liability, a plaintiff must plausibly allege that the defendant “(1) knowingly benefited (2) from taking part in a common undertaking or enterprise involving risk and potential profit, (3) that the undertak- ing or enterprise violated the TVPRA as to the plaintiff, and (4) that the defendant had constructive or actual knowledge that the undertaking or enterprise violated the TVPRA as to the plaintiff.” Doe #1 v. Red Roof Inns, Inc., 21 F.4th 714, 719 (11th Cir. 2021); see also G.G. v. Salesforce.com, Inc., 76 F.4th 544, 552-53 (7th Cir. 2023). This (Continued on next page) Civil TVPRA litigation has moved well beyond its origins as an ancillary remedy to criminal prosecution and now represents sustained civil exposure for hospitality and event-driven businesses. derbycitylitho.com • duplicatorsales.net 1-800-633-8921 • 831 E. Broadway, Louisville, KY 40204 PRINT, CONNECT, SUCCEED Tailoring your Office Technology Solutions since 1959. Network Printers and Copiers Fleet and Managed Print Solutions Corporate Mailing Systems Computer Systems and Managed IT Document Management Professional Print The Zoppoth Law Firm anniversary th 30 as Kentucky’s Premier Boutique Business Litigation Law Firm Scott Zoppoth [email protected] Brad Zoppoth [email protected] Liz Mosler [email protected] zoplaw.com | 502.568.8884 is celebrating its
