Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · U.S. Jury Awards US$10 M to Ritz-Carlton Bali Owners
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
Bali Update
Subscribe to our free weekly newsletter!
 
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
 
Bali Contact
Bali Discovery Tours
Jln. By Pass Ida Bagus Mantra,
Jln. Pucuk 1 No. 70X
Denpasar, Bali
Indonesia

24h:
+62 (0)812 3819724
Tel:
+62 (0)361 464 032, +62 (0)361 471 0242

Bali Discovery

SITE PATA ASITA
Bali News

U.S. Jury Awards US$10 M to Ritz-Carlton Bali Owners

Landmark U.S. Ruling May Have Impact on Hotel Developments World-Wide.


Bali News:
Click Image to Enlarge

(2/3/2008)

Karang Mas Sejahtera (KMS) the Indonesian owners of the Ritz-Carlton Bali Resort & Spa have been awarded US$10 million in punitive damages by a Maryland Federal (U.S.) jury who found the that Ritz-Carlton - part of Marriott International, had violated a non-competition exclusivity agreement by participating in the development of a second hotel in Bali, the nearby Bulgari Resort.

After a 14-day trial, the Maryland jurors ruled that the 2006 opening of the Bulgari Resort, Bali - operated by Italian Jewelry company Bulgari Spa with Marriott represented a breach of a "non-competing" clause agreed by Ritz-Carlton with the Indonesian owners of the Bali property. The suit, originally filed in 2005, charged Ritz-Carlton Co. LLC - a Maryland registered company with fraud, breach of contract and breach of fiduciary duty.

A report published in the Maryland Daily Record quoted, William A. Brewer, an attorney for KMS as saying: "Ritz-Carlton continuously lied to our client about the nature of the involvement of the Ritz-Carlton employees, standards, and assets in the building of what was a competitive brand next door."

The complaint charged the hotel operators with using names, assets and resources in opening and operating the Bulgari property.

Brewer also alleged that "Ritz Carlton abused its privileges as operators of the KMS hotel and used confidential and proprietary information owned by KMS to plan and develop the competing Bulgari hotel while concealing those profits from KMS."

According to a published report in the Wall Street Journal, lawyers for KMS successfully argued that the Bali Bulgari Resort unfairly benefited from Ritz-Carlton's name in marketing and promotion when it opened its 59 villa luxury hotel, just 5 kilometers up the beach their client's property.

The court case, which awarded KMS $382,304 in compensatory damages together with US$10 million in punitive damages, also allows KMS to terminate its contract with Ritz-Carlton.

An upcoming hearing will determine what additional injunctive relief and attorney fees are due to KMS.

The lawyers for KMS said the owners have yet to decide if they will end their relationship with Ritz-Carlton. KMS attorney Brewer told the Maryland Daily Record that "we'll ask the judge to restrain those ongoing breaches of loyalty by Ritz-Carlton and make sure they don't continue."

The Maryland court ruling may have far-reaching impact against the ever-increasing tendency of large hotels to form large conglomerates encompassing a range of hotel brands. Robert LaFleur, a lodging analyst quoted by the Wall Street Journal said: "One of the ways hotel companies have continued to expand is through brand extensions. They'd either modify an existing brand or come up with a new brand, and that would be seen as a way to get around territorial restrictions that franchisees or hotel owners have."

Both The Wall Street Journal and The Maryland Daily Record report that Ritz-Carlton declined comment on the case.


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.

       

 
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!



Our [Privacy Statement] explains how we handle the data you are providing.

 
Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!




or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
Working to Preserve and Promote Bali Arts
Bale Banjar Culture Club to Feature Peter J. Wilson and Made Sidia – World Renowned Producers of Balinese Stage Performances
(4/15/2018)
Does Bali Already Have a Second International Airport?
Editorial: A Practical Perspective on a Second Airport for Bali
(4/15/2018)
Shopping on Touchdown in Bali
New Duty Free Shopping Area for International Passengers Arriving in Bali
(4/15/2018)
Seeking Wider Horizons of Understanding
TEDxUbud Event Set to Stimulate Innovation and Creativity on Saturday, May 5, 2018
(4/15/2018)
Keeping the News Cycle Positive
Udayana Military Commander Calls on Media to ’Self-Censor’ and Avoid Controversial Reporting in Run-Up to IMF-World Bank Meeting
(4/15/2018)
Fugitives No More
Fugitive German and Indonesian Wife Captured by State Prosecutors to Start Serving Prison Sentences Handed Down in Bali Property Scam
(4/15/2018)
Enhancing the Quality of Bali Visitors
Tourism Ministry Outlines How Bali Can Attract Higher Quality Tourist Visitors
(4/15/2018)
Roll Out the Barrels
Australian Government Assisting Bali in Conquering Mounting Trash Problem
(4/15/2018)
The Rainbow Connection
Green Peace’s Rainbow Warrior Uses Bali Visit to Fight Coal-powered Electricity, Plastic Pollution and Lend Support to ForBALI’s Fight Against Reclamation of Benoa Bay
(4/15/2018)
Friday the 13th in Bali
Tourist Bus Kills One Man and Damages 6 Cars and 2 Motorcycles in Spectacular Chain-Collision Near Bali’s GWK Monument
(4/15/2018)
3-Month Sticker Visas for Vehicles Visiting Bali
Bali Government Seeking to set 3-month Limit on the Amount of Time Cars Registered Outside Bali can Spend in the Province
(4/15/2018)
Shown the Door
North Bali Immigration Deports Dutch Husband and Wife for Illegally Operating Two Rental Villas
(4/15/2018)
All [News]!