|
|
Legally Speaking
1 Aug, 2008 By: Kenneth D. Morris Landscape ManagementQ. My contract with a major hotel chain property was supposed to extend through 2008. But now they say I've been replaced. Can I sue them for the lost revenue?
A. If the contract you and the hotel signed clearly extends through 2008, you need to know the basis of the hotel's decision. Does the contract allow for termination under certain circumstances? Did the hotel comply with the provisions governing how and under what circumstances such a contract can be terminated? If, for example, the hotel can terminate on 60 days written notice only for cause, did the hotel provide written notice and what was the cause?
Whether or not you can sue for lost revenue largely depends on whether the contract allows for early termination and whether the hotel properly fulfilled those conditions. If the hotel breached the agreement in notifying you they were replacing you, does the agreement have specific dispute resolution provisions?
You may be limited in your freedom to sue, for example, if the agreement contains a dispute resolution procedure with which you must first comply. If the parties have agreed to arbitrate all disputes and further agreed that such arbitrations are binding and the exclusive remedy, you will not be able to take the hotel into court.
Kenneth D. Morris is a Philadelphia-based attorney with more than 30 years corporate and law firm experience. Contact him via www.kenmorrislaw.com.
Note:
The above should not be interpreted as offering legal advice in any jurisdiction where such practice is not authorized.
Please send any technical comments or questions to our webmaster.