April 2008 – Hospitality Law reported on the firm’s trial win against the Ritz-Carlton Hotel Co. on behalf of client Karang Mas Sejahtera (KMS), owner of the Ritz-Carlton Bali Resort & Spa. The jury awarded KMS more than $10 million.
As reported, “KMS filed the lawsuit against Ritz-Carlton three years ago, when the company began developing the Bulgari Bali Hotel. KMS accused the Ritz of violating its fiduciary duties by operating a competing property in disregard to KMS’s territorial rights and alleged that the Ritz failed to recognize its responsibilities as an agent of the Ritz-Carlton Bali.”
A Greenbelt, Maryland jury found the Ritz breached its amended and restated operating agreement and violated its fiduciary duties to KMS, among other things.
“It doesn’t matter what you call a relationship – if someone is managing your business, your assets, for your benefit and being paid handsomely to do that, they owe you a fiduciary duty,” said firm partner William A. Brewer III. “I think it [the jury verdict] reminded everybody that between a principal and an agent, honest and fact are the touchstone of the relationship.”