Ousted Setai management company wins damages in arbitration
06/13/2014 5:13 PM
06/13/2014 5:14 PM
The management company that was ousted from the Setai Miami Beach in 2012 over poor performance said arbitrators have ruled in its favor.
Singapore-based General Hotel Management, or GHM, said in a press release that the ICC International Court of Arbitration ruled on Thursday that allegations of mismanagement were without merit and GHM should be awarded damages for improper termination.
“The damages and costs awarded to GHM thus far are in excess of $10 million,” said Daniel F. Benavides, an attorney representing GHM, in a statement. “GHM still has pending tort claims in state and federal court which may yield additional damages awards.”
The hotel’s owner, an affiliate of Lehman Brothers Holdings, kicked GHM out in an early-morning takeover in 2012 and installed Trevi Luxury Hospitality Group.
Arbitration has been ongoing for two years. A spokesman for Benavides said the ruling had not yet been filed and could not be provided Friday.
A representative for the arbitration court could not be reached Friday; a spokesman for the law firm representing the hotel’s owner did not provide a response to the ruling by Friday afternoon.
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