$25.4 Million Verdict Against Springdale Motel for Sex Trafficking of a Minor

From the summer of 2014 through July 2017, a girl in foster care was held at the Economy Inn in Springdale, Arkansas, for stretches lasting up to six weeks at a time. She was between 14 and 17 years old during that period. Her trafficker forced her to perform sexual acts with multiple men each day, keeping all proceeds for himself.

The lawsuit, filed against OM Hospitality, Inc., the corporate owner of the motel, alleged that management did far more than look the other way. According to court filings and coverage of the case, motel staff tipped off the trafficker when law enforcement was nearby, accepted cash-only payments, and denied housekeeping access to rooms where the victim was held. Those acts formed the basis of liability under the federal Trafficking Victims Protection Act, which allows civil claims against parties who knowingly benefit from or facilitate trafficking.

Meredith Moore of Rainwater, Holt and Sexton represented the survivor. OM Hospitality did not defend the case, and Benton County Circuit Court Judge Doug Schrantz entered a default judgment on April 8, 2022. The formal award of $25.4 million was entered on July 31, 2022.

The total included compensatory damages for the years of abuse and more than $19 million in punitive damages meant to address the company's knowing conduct. Attorney Moore described the verdict as a signal that businesses that fail to protect the public from trafficking on their property face serious financial consequences.

At the time of the judgment, legal observers and press coverage described it as potentially the largest verdict in the United States against a single hotel property in a sex trafficking case involving a minor. The CSE Institute, which tracks trafficking litigation, reported the award without noting any subsequent reduction on appeal.