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Hotel Lawyer on the Fiduciary, Contractual and Agency Duties of Hotel Brokers
Host Hotels & Resorts LP v. Molinaro Koger Litigation

 

By Jim Butler and the Global Hospitality Group®, 
Author of www.HotelLawBlog.com
August 16, 2011

Hotel Lawyer on brokers, agents fiduciary duty and charges of trust betrayed as laid out in the high-profile lawsuit of Host Hotels & Resorts against Robert T. Koger (personally) and his brokerage firm Molinaro Koger, Inc.

I was recently interviewed by Jason Freed of HotelNewsNow (a division of Smith Travel Research) about three high profile lawsuits in the hospitality industry. One of these cases was Host Hotels & Resorts v. Robert T. Koger. In this litigation, Host Hotels & Resorts sued a number of defendants, including Rob Koger and his firm, Molinaro Koger, for breach of fiduciary duties, breach of contract, fraud and other serious claims.

Lawsuits between sellers and brokers are not particularly common in the hospitality industry. And lawsuits alleging fraud are even less common.

One of the reasons I enjoy working in the hospitality industry is the optimism, openness and collegiality that exists throughout the hospitality community. Developers, owners, operators, lenders, brokers, lawyers, consultants, advisors, trade media -- we all depend upon each other. Although I am a rigorous advocate for my client's position in negotiations, there is an understanding, including with those on the "other side", that we are working together for the success of making the deal or completing the project.

Anyone in this industry will tell you that a serious charge of violating the fiduciary duties a professional owes to his client is troubling. But a claim of fraud goes a step further. And personally naming a high-profile industry leader is really an attention-getter, particularly by an institutional player like Host Hotels.

As I told Jason in the interview about this lawsuit: "These are serious allegations. A lot of facts were put into the complaint, such as who called who and who did what. You have very specific, detailed, factual allegations." This lawsuit does not look like it was filed to get discovery and run a fishing expedition. It looks like someone already has the goods.

Still, at this time, they remain allegations in a complaint. How this lawsuit will play out is anyone's guess, but many will be watching. If you would like a copy of the complaint, let me know and I will email it to you.

Click here to read Jason Freed's article Checking in on high profile lawsuits on HotelNewsNow.

Click here to read my commentary on M Waikiki's Edition litigation against Marriott and Ian Schrager.

Click here to read my commentary on Hotel Lawyer on the importance of brands -- intellectual property rights and what they mean.

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This is Jim Butler, author of www.HotelLawBlog.com and hotel lawyer, signing off. We've done more than $60 billion of hotel transactions and have developed innovative solutions to unlock value from hotels. Who's your hotel lawyer?

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Our Perspective. We represent hotel lenders, owners and investors. We have helped our clients find business and legal solutions for more than $60 billion of hotel transactions, involving more than 1,300 properties all over the world. For more information, please contact Jim Butler at jbutler@jmbm.com or +1 (310) 201-3526.

Jim Butler is a founding partner of JMBM, and Chairman of its Global Hospitality Group® and Chinese Investment Group™. Jim is one of the top hospitality attorneys in the world. GOOGLE "hotel lawyer" and you will see why.

Jim and his team are more than "just" great hotel lawyers. They are also hospitality consultants and business advisors. They are deal makers. They can help find the right operator or capital provider. They know who to call and how to reach them.



JMBM’s Global Hospitality Group®
The hotel lawyers in the Global Hospitality Group® of Jeffer Mangels Butler & Mitchell (JMBM) comprise the premier hospitality practice in a full-service law firm and are the authors of the Hotel Law Blog. We represent hotel owners, developers, investors and lenders and have helped our clients find business and legal solutions for more than $60 billion of hotel transactions, involving more than 1,000 properties worldwide. For more information about the Global Hospitality Group®, go to www.HotelLawBlog.com. For more information about full range of legal services provided by JMBM, go to www.JMBM.com.
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Contact: 

Jim Butler
jbutler@jmbm.com
310.201.3526

 

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Also See: M Waikiki's Edition Lawsuit Against Marriott International and Ian Schrager - an Owner's HMA Dispute with Marriott and What it All Means / Jim Butler / August 2011

Hotel Investment: Why Asian investors are targeting U.S. hotels for purchase and investment, and what could it mean for you? / Jim Butler / August 2011

Hotel Developers: Why a "regional center" may be the key to financing your next hotel development or expansion. And what you need to know... / Jim Butler / July 2011

How to use the EB-5 Immigrant Investor Visa Program for financing / Jim Butler / July 2011

JMBM Announces Formation of the Chinese Investment Group™ - Hotels, Real Estate, EB-5 Immigrant Investor Visas / July 2011

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Hotel Lawyer: What you need to know about the "ancillary benefits" of setting up a captive insurance company / Jim Butler & Gordon Schaller / June 2011

Hotel Lawyer: Are you thinking about setting up a captive insurance company? Maybe you should be. . . / Jim Butler & Gordon Schaller / June 2011

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JMBM’s Global Hospitality Group® announces publication of The HMA Handbook, a FREE practical guide for negotiating Hotel Management Agreements for Hotel Owners, Developers, Investors and Lenders / March 2011

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Ask the Hotel Lawyer: 2011 is starting as the year of "Great Expectations" for the hotel industry! / Jim Butler / January 2011

Hotel ADA Defense Lawyer: How a recent ADA case affects all hotels but particularly conference centers and meeting hotels / Jim Butler / January 2011

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Sheraton Universal Hotel Sale Facilitated by JMBM's Global Hospitality Group® / Jim Butler / January 2011



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