Victory for Starwood Hotels & Resorts in Multi-Million Dollar Dispute

January 1, 2008 – American Lawyer Media profiled firm Partner William A. Brewer III and the firm’s successful defense of Starwood Hotels & Resorts Worldwide, Inc. against claims relating to its ownership and management of two Westin hotels, one in Chicago and the other in San Franscisco.

As explained in the article, “Victory for Starwood Hotels & Resorts in Multi-Million Dollar Dispute,” $200 million was at stake but also something even bigger – failure could result in “scores of other hotel owners who might join together to file a class action on a similar claim…”

According to the article, “After a 17-month arbitration process and a two-week trial, Starwood in 2006 soundly defeated its opponent on every claim. The victory reaffirmed [the firms’] position as one of the leading hospitality litigation firms in the world. Because of the potential for other lawsuits should the company settle or lose, the case was a quintessential ‘bet-the-company’ lawsuit,” Brewer said.

Dallas Morning News: Hunt Family Embroiled in Trust Lawsuit

November 9, 2007 – The Dallas Morning News reports on a lawsuit by firm client Albert Hill III, the first great-grandson of H.L. Hunt, against the trustees for two family trust funds, alleging mismanagement of about $3 billion in assets.

The article, titled “Hunt Family Embroiled in Trust Lawsuit,” describes the creation of several family trusts and claims from Hill III that he “became a direct beneficiary of the trust when his father, Mr. Albert Hill Jr. ‘disclaimed’ most of his interests in the Margaret Hunt trust March 22, 2005.”

“Al Hill III didn’t sue his father until after his father sued him and said he was not the beneficiary of these trusts, fired him from the family business and filed documents in probate court that made certain claims that would oust Al and his grandchildren from any interests in these trusts,” said William Brewer, attorney for Albert Hill III.

Starwood Hotels & Resorts Announces Major Victory in Multi-Million Dollar Dispute

May 11, 2006 – Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) announced today a major victory in an arbitration relating to the ownership and management of two Westin hotels. A three-member arbitration panel issued a unanimous ruling on April 28, finding that Starwood and Westin Hotels Limited Partnership (“WHLP”) had prevailed in a 17-month long arbitration proceeding and were not liable for any portion of the more than $200 million Kalmia Investors, LLC (“Kalmia”) alleged as damages to the WHLP partnership in which it is an investor.

Kalmia asserted numerous claims against WHLP, Starwood and Westin Realty Corporation ("Westin Realty"), the general partner of WHLP, and sought lost profits, disgorgement of management fees, punitive damages and the alleged lost value from the sale of the two hotels in question.

The panel denied Kalmia's claims, stating, "Kalmia failed to carry its burden of proving, separately or in combination, misconduct (by Starwood, WHLP, or Westin Realty) violative of any contractual, fiduciary or other legal duty owed to Kalmia by those parties," and that, “the total damages sought by Kalmia were inflated, unsupported, and lacking in credibility.” The panel also characterized Kalmia's main theory of damages as “entirely speculative and highly improbable.”

“This is an important victory for us," said Kenneth S. Siegel, Chief Administrative Officer and General Counsel of Starwood Hotels. "This ruling is a major validation of Starwood's business practices and proves that we honored our duties to all parties involved and acted in the utmost good faith. We look forward to continuing to successfully manage the Westin St. Francis Hotel and the Westin Michigan Avenue Hotel.”

“The panel’s decision vindicates Starwood's management of these two great hotels," said William A. Brewer III, partner at Bickel & Brewer and lead defense counsel for Starwood. “We are pleased that the panel agreed and denied Kalmia's claims in all respects.”

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