Empire Holdings LLC, a New York-based corporation that owns the Radisson Empire Hotel New York at 44 West 63rd St., is suing Radisson to terminate its license agreement with the international hotel chain. Empire's complaint charges Radisson with breach of fiduciary duty, fraud and/or negligent misrepresentation, breach of contract and violations of the New York Franchise Sales Act.

Empire is asking the court to award actual and punitive damages. In addition, Empire seeks a full accounting of the marketing and reservation system assessments charged by Radisson for its reservation system. Empire's complaint asks the court to terminate the license agreement without paying Radisson more than $1 million in fees and assessments.

According to the lawsuit, Empire alleges it has the right to terminate the license agreement without penalty if Radisson does not generate at least 30 percent of all gross room sales during the year. Radisson claims it generated more than two-thirds (67 percent) of the gross room sales at the Radisson Empire Hotel in 1998. Empire, however, claims the number is far lower, noting that third-party reservations made up at least half the sales Radisson claims it generated. Specifically, the complaint alleges Radisson inflated its numbers to appear to meet that minimum by taking credit for reservations generated by the Radisson Empire Hotel itself and third parties, such as travel agents who booked rooms through non-Radisson reservation networks.

"Given the allegations in the complaint, we are most anxious to get the full story about Radisson's dealings with this hotel and others," said William A. Brewer III, lead attorney from Bickel Brewer, the law firm representing Empire Holdings. "Based upon the seriousness of these allegations, it is important to the industry that we protect a franchisee's rights under these agreements and ensure fair play in the process."

Empire acquired the 381-room hotel in May 1998 from Metromedia Hotels of NY. Metromedia had operated the hotel under a licensing agreement with Radisson since 1990. Empire entered into an interim license agreement with Radisson that was due to expire in August 1998 -- a date extended by Radisson to Feb. 28, 1999.