Ritz-Carlton Bali owners win new judgement
DENPASAR – Indonesian owners of the Ritz-Carlton Bali Resort & Spa were awarded US$10 million in damages by a Maryland Federal (U.S.) jury who found the that Marriott International, who own the Ritz-Carlton brand, had violated a non-competition exclusivity agreement by participating in the development of a second hotel in Bali, the Bulgari Resort.
In an April 28 ruling reported by Bali Update (www.balidiscovery.com) the judges ruled on a number of post-trial motions filed on behalf of the Indonesian owners:
• The Court denied “Marriott’s motion in all respects,” except as regards issuing a final ruling on Marriott’s assertion that the punitive damage award of US$10 million was excessive.
• The Court granted the Indonesian owner’s request for declaratory relief which opens the way for owners Karang Mas Sejahtera (KMS) to, at its option, terminate its relationship with Ritz-Carlton.
• The Court denied KMS’ request for “disgorgement and forfeiture” of fees paid by them to Ritz-Carlton.
In rejecting the request for a refund of management fees paid to Ritz-Carlton by KMS, the Court nonetheless did declare that the Indonesian owners are entitled to end the operating agreement with Marriott/Ritz-Carlton.
It should be noted, said Bali Update, that it is both unclear and uncertain if KMS’ intention is to exercise its right to end its relationship with Ritz-Carlton.
A further hearing in the case will adjudicate whether or not a February jury award of US$382,304 in compensatory damages will be sufficient to meet the attorney fees incurred by KMS in bringing the matter before the U.S. Courts.
Marriott is expected to appeal the case.
Ian Jarrett
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