Dallas Morning News: Hunt Family Embroiled in Trust Lawsuit
November 9, 2007 – The Dallas Morning News reports on a lawsuit by firm client Albert Hill III, the first great-grandson of H.L. Hunt, against the trustees for two family trust funds, alleging mismanagement of about $3 billion in assets.
The article, titled “Hunt Family Embroiled in Trust Lawsuit,” describes the creation of several family trusts and claims from Hill III that he “became a direct beneficiary of the trust when his father, Mr. Albert Hill Jr. ‘disclaimed’ most of his interests in the Margaret Hunt trust March 22, 2005.”
“Al Hill III didn’t sue his father until after his father sued him and said he was not the beneficiary of these trusts, fired him from the family business and filed documents in probate court that made certain claims that would oust Al and his grandchildren from any interests in these trusts,” said William Brewer, attorney for Albert Hill III.
Austin American-Statesman Reports UT System, Hydro-Quebec Win Round in Battery Suit
February 6, 2007 — The Austin American-Statesman reports that The University of Texas System "won a key appellate ruling in a lawsuit alleging that Japanese telecommunication giant NTT Corp. stole advanced battery technology from the Austin campus." The article, titled “Battery Deal Gives UT Royalty Payments,” states that the ruling "moves the UT System and Canadian utility Hydro-Quebec a big step closer to trying the case in state district court in Austin."
The report states that Bickel & Brewer client Hydro-Quebec is the lead plaintiff in the case. Hydro-Quebec licensed the battery technology from the UT System but claims the "theft and misuse of the technology has cost it and the university licensing deals" — with damage estimates at $500 million to $750 million, according to attorney Bill Brewer.
Starwood Hotels & Resorts Announces Major Victory in Multi-Million Dollar Dispute
May 11, 2006 – Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) announced today a major victory in an arbitration relating to the ownership and management of two Westin hotels. A three-member arbitration panel issued a unanimous ruling on April 28, finding that Starwood and Westin Hotels Limited Partnership (“WHLP”) had prevailed in a 17-month long arbitration proceeding and were not liable for any portion of the more than $200 million Kalmia Investors, LLC (“Kalmia”) alleged as damages to the WHLP partnership in which it is an investor.
Kalmia asserted numerous claims against WHLP, Starwood and Westin Realty Corporation ("Westin Realty"), the general partner of WHLP, and sought lost profits, disgorgement of management fees, punitive damages and the alleged lost value from the sale of the two hotels in question.
The panel denied Kalmia's claims, stating, "Kalmia failed to carry its burden of proving, separately or in combination, misconduct (by Starwood, WHLP, or Westin Realty) violative of any contractual, fiduciary or other legal duty owed to Kalmia by those parties," and that, “the total damages sought by Kalmia were inflated, unsupported, and lacking in credibility.” The panel also characterized Kalmia's main theory of damages as “entirely speculative and highly improbable.”
“This is an important victory for us," said Kenneth S. Siegel, Chief Administrative Officer and General Counsel of Starwood Hotels. "This ruling is a major validation of Starwood's business practices and proves that we honored our duties to all parties involved and acted in the utmost good faith. We look forward to continuing to successfully manage the Westin St. Francis Hotel and the Westin Michigan Avenue Hotel.”
“The panel’s decision vindicates Starwood's management of these two great hotels," said William A. Brewer III, partner at Bickel & Brewer and lead defense counsel for Starwood. “We are pleased that the panel agreed and denied Kalmia's claims in all respects.”
To read more, click here.
WSJ Reports on Government’s Probe of Tax Shelters
June 3, 2005 – The Wall Street Journal reports today on “a popular stock option transaction marketed by Bank of America and other institutions” that is at the center of an investigation launched in New York by Manhattan District Attorney Robert Morgenthau. According to the WSJ, the investigation has been joined by the Internal Revenue Service and the Securities and Exchange Commission.
The article comments on firm clients Sam and Charles Wyly. According to the article, the Wylys “feel strongly they only did that which was appropriate,” said Bill Brewer, their Dallas lawyer.
The two created their trusts for the benefit of family members and charitable purposes, Mr. Brewer said. They “hired all these professionals to do what they thought and still hope are legitimate arrangements,” Brewer said.
Read the full report here.