Hotel Online  Special Report
The Global Hospitality Advisor

 Settlement Procedure Available to
California Hotels Plagued by
Prop 65 Cases

April 2002

Many hundreds of parties with hotels located in California have been hit with “intent to sue” notices under California’s Proposition 65, and hundreds more will get them in the near future. These “Prop 65 cases” have been an expensive and annoying problem.

Working with JMBM, the California Hotel & Lodging Association (“CH&LA”) has developed a Global California Proposition 65 Settlement for all CH&LA members. JMBM was selected by CH&LA as the counsel of choice to assist the Association members to resolve the pending and threatened Prop 65 cases that have been plaguing the industry for two years. JMBM has worked closely with the California Attorney General’s office on this program and JMBM believes it will support the global settlement.

The CH&LA is pleased to report an agreement in principle for a global settlement that can benefit all CH&LA members. The settlement will provide protection for past Prop 65 claims involving second-hand tobacco smoke and other chemicals commonly present at lodging facilities. With the procedures developed, the global settlement will provide res judicata protection — binding other potential claimants against future claims for these past violations. 

Jim Abrams, Executive V.P. of CH&LA says, “CH&LA retained the lawyers at JMBM to develop a low-cost global settlement procedure to help all CH&LA members obtain protection for past, present, and future Proposition 65 claims involving second-hand tobacco smoke and other chemicals. These attorneys are very experienced in fighting and defending Proposition 65 claims on behalf of innkeepers.”

Here are some of the details:

  • It will cost each innkeeper very little to settle and little for attorney’s fees.
  • It can protect you whether or not a claim has already been made against you.
  • You will be protected for all alleged past Proposition 65 violations you identify.
  • It will include simple compliance directions to protect you in the future.
  • It can protect owners, managers, franchisees, and other related parties. 
  • You can benefit from this even if you have already settled a claim. 
If you already have lawyers, they can continue to represent you. But, the more CH&LA members who elect to participate in the CH&LA’s global settlement, the better the deal will be for all. CH&LA also urges all innkeepers to think carefully about settling a Prop 65 claim without prior review by a knowledgeable attorney to insure that you get comprehensive protection. 

For details, please refer to CH&LA’s Red Alert #2 dated March 14, 2002. Or to join in the CH&LA’s global settlement, contact Jim Abrams at 916.444.5780 or [email protected].

For more information, please Jim Butler at 310.201.3526 or [email protected].

The Global Hospitality Group(r) is a registered servicemark of Jeffer, Mangels, Butler & Marmaro LLP

For more information:
Jeffer, Mangels, Butler & Marmaro LLP
web site:
Email Jim Butler at [email protected]
Or contact 
Jim Butler at the Firm
 Jeffer, Mangels, Butler & Marmaro LLP
  2121 Avenue of the Stars
 Los Angeles, CA 90067
     Phone: 310-201-3526 
The premier hospitality practice
in a full-service law firm
Also See: Top Ten Investment Challenges Facing the Lodging Industry / Lodging Industry Investment Council / April 2002 
Outlook 2002: A Roundtable Discussion / The Global Hospitality Advisor / JMBM / January 2002 
Decertifying a Union? The Employer’s Bill of Rights / The Global Hospitality Advisor / JMBM / April 2002 
New Rules for Hotel Workouts: REMICs for Dummies / The Global Hospitality Advisor / JMBM / December 2001 
Living in the Wake: Predictions & Practical Implications / The Global Hospitality Advisor / JMBM / December 2001 
Avoiding Liability for Lay-Offs / The Global Hospitality Advisor / December 2001
The Worker Adustment and Retraining Notification Act: Impact on the Hotel Industry / JMBM 
When is an Apartment a Hotel ... and Who Cares? / The Global Hospitality Advisor / JMBM / September 2001 
The 'Perfect Storm' / The Global Hospitality Advisor / JMBM / September 2001 
Richard Kessler's Grand Theme Hotels - Interview with GHG Chairman  Jim Butler / March 2001
Stephen Rushmore's  Industry Trends / Top Markets, Predictions & Opportunities  / Jan 2001
Outlook 2001: A Roundtable Discussion The Global Hospitality Advisor / Jan 2001
Perspectives on Hotel Financing in 2001; Jim Butler, JMBM's Global Hospitality Group Chairman, Interviews Two Active Players in Hotel Finance / Jan 2001 
Robert J. Morse: Millennium’s New President / Interview with GHG Chairman Jim Butler / Nov 2000 
Special Reports / Jeffer, Mangels, Butler & Marmaro LLP

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