Resort Consultant Says Get Contract Right to Avoid Similar Lawsuit

This is the last of three major lawsuits previously discussed as a resort consultant having worked on brand agreements that I wanted to share from the recent article at HotelNewsNow.com. In the following excerpts, the litigation is centered primarily on the brand licensing to a major hotel competitor. Below are the commentary and some issues to consider from our perspective on the 3rd case: In the case Family Suites Resorts v. Viacom International d/b/a MTV Networks there was “a motion to dismiss filed by defendant Viacom was denied in early June, meaning the Family Suites Resorts v. Viacom International case will proceed. The agreement between Nickelodeon and Marriott to partner on a Nickelodeon-themed venture was announced in May 2007, and Family Suites, by way of Bickel & Brewer law firm, claim Viacom breached its contract by licensing the Nickelodeon cable brand to a rival hotel chain. At the time of the filing, a Nickelodeon spokesperson said, “Their claims are without merit.”” Branding with entertainment names is a common recommendation among our resort consultant peers as discussed in the full article. This adds a certain valuation aspect and higher return on investment when it is a national television channel reaching millions of viewers who visit resorts and theme parks across the USA every year. ““Plaintiffs would not have invested over US$168 million to purchase, remodel, retheme and operate the hotel as a Nickelodeon hotel if they had known that Viacom would frustrate the purpose of the license agreement by offering, promoting and producing similar Nickelodeon-themed experiences at other hotels nationwide,” the complaint stated.” In our experience, gaining exclusivity associated with a certain national name can also provide an opportunity for the branded hotel to sell some of its units and offer timeshare resort management services as well. Resort management companies can read our blog on the other two lawsuits here. Are you a law firm or attorney working on similar hotel and resort lawsuits where there is a brand or licensing agreement in dispute? What can you share with this resort consultant and our readers as to the key points of the litigation and the outcome if any?