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Litigation filed to resolve Miami hotel dispute

When two companies enter into a contract, it can be similar to a marriage. The parties believe that they have the same priorities, goals, and dreams for the future. While commercial business owners do not agree to stay together for life, they may sign a long term contract contemplating a business arrangement that lasts for 20 years or longer. Generally, the relationship gets off to a good start, but it can erode over time leading to messy and challenging business litigation.

The owners of the Eden Roc hotel in Miami and its former management company, Renaissance Hotels, are currently facing such a business dispute. After hiring Renaissance to operate its luxury hotel, Eden Roc determined that the arrangement was not working based on its belief that Renaissance was not generating enough profit. Renaissance refused to stop providing services so Eden Roc filed a lawsuit.  Eden Roc also attempted to physically force out the people working for Renaissance by using security guards in the middle of the night.

Renaissance finally agreed to cease managing the hotel, but it is not going away quietly. Its parent company filed a breach of contract claim against Eden Roc’s owners alleging that it is owed millions of dollars in management fees. According to Renaissance, the contract between the parties extended until 2030 and possibly through 2055. The complex commercial dispute will eventually be sorted out in the court system.

Whether a contract dispute involves millions of dollars or lesser sums, it is best to consult experienced legal counsel when parties can no longer work together. Attorneys can recommend possible ways to resolve the situation or begin preparing the documents necessary for commercial litigation.

Source: Miami Herald, “Eden Roc no longer a Renaissance as of next month,” Hannah Sampson, June 13, 2013

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