San Francisco Hotel Owner Scores Early Wins Against Virgin Hotels, Lawsuit Proceeds to Trial
November 25, 2020 – Brewer, Attorneys & Counselors today announced two positive developments for its client, 250 Fourth Development L.P. (“Hotel Owner”), in its dispute with Virgin Hotels San Francisco (“Virgin Hotels”). In sum, the court issued two important decisions. First, the court overruled Virgin Hotels’ attempts to avoid having to face Hotel Owner’s claims against Virgin Hotels for damages done to the project before Owner terminated the management agreement. Second, on November 20, 2020, the court denied Virgin Hotels’ efforts to freeze more than $2 million of Hotel Owner’s property. The case now proceeds toward trial.
The underlying legal dispute began on May 6, 2020, when Virgin Hotels filed a lawsuit alleging the Hotel Owner’s termination of the Hotel Management Agreement (“HMA”) on April 8, 2020, violated that agreement. On July 16, 2020, the Hotel Owner filed its Original Cross-Complaint in the Superior Court of the State of California, County of San Francisco. A month later, on August 19, 2020, the Hotel Owner filed its First Amended Cross-Complaint, alleging that Virgin Hotels made numerous misrepresentations to Hotel Owner by, among other things, knowingly overstating Hotel gross revenues to inflate its management fee and misrepresenting bonus amounts due to Hotel employees. As a result of the alleged fraud and mismanagement, the Hotel Owner claims the loss of tens of millions of dollars in unrealized hotel profits and the lost value of the property.
In total, the Hotel Owner asserts five causes of action against Virgin Hotels, including breach of contract and fraud. Virgin Hotels demurred, or moved to dismiss, the claims. On October 30, 2020, the court entered an order overruling the demurer in its entirety, vindicating each and every one of the Hotel Owner’s claims. In so doing, the court noted that the First Amended Cross-Complaint “adequately pleads constructive fraud.”
“Our client is grateful that this case is moving forward and is eager to proceed to trial,” said William A. Brewer III, partner at Brewer and counsel to 250 Fourth Development, L.P. “For years, our client put faith in Virgin and its assurances that it was creating a first-class brand. Our client believes that not only has Virgin failed to create the ‘promised brand,’ it grossly mismanaged the San Francisco property in an effort to boost Virgin Hotels’ own bottom line.”
After failing to obtain dismissal of Hotel Owner’s claims, Virgin Hotels filed an application for a writ of attachment on Hotel Owner’s property – to secure what Virgin Hotels claimed was over $2 million in expenses that Virgin Hotels had either paid or was owed to third parties. On November 20, 2020, the court denied this request in its entirety.
New York Law Journal: NRA Seeks to Move New York Attorney General's Lawsuit Out of New York
On November 13, 2020, the New York Law Journal reported that the NRA is "battling in court on two fronts to move a high-profile lawsuit brought by New York Attorney General Letitia James" out of New York City.
The report states that the NRA, which is represented by Brewer, has asked the U.S. Judicial Panel on Multidistrict Litigation (MDL) to "send four federal lawsuits focused on its financial troubles to a courtroom in North Texas."
The NYLJ reports that William A. Brewer III, counsel to the NRA, acknowledged that the request to move, among others, the lawsuit filed by James, is "a bit unusual." However, he contends that without an MDL, depositions in the various cases will be a "nightmare" for the NRA.
“This is not typical, but I don’t think it’s a stretch either,” Brewer said of his motion.
“We’re trying to make sure we get everything in the right forum,” he said. “We don’t have any concern with the venues for trial. It’s rather that the cases should be coordinated given the significant overlap in pretrial activities, so that the documents, the depositions and pretrial activities are available in all those cases.”
New York Post Reports on Lawsuit Filed Against Uber on Behalf of Assault Victim
On October 31, 2020, the New York Post reported that Brewer, Attorneys & Counselors filed a lawsuit against Uber on behalf of its client, identified in court papers as "Jane Doe."
As the Post reports, Brewer's client alleges she was attacked by her Uber driver in 2018, during what she assumed would be a safe ride home. She alleges that the incident left her with a fractured shoulder, post-traumatic stress disorder and years of anxiety and depression.
The lawsuit, filed in Manhattan Federal Court, alleges that even though Uber has acknowledged that thousands of its female passengers have been sexually assaulted during rides, the company still fails to monitor its drivers with in-vehicle video or by checking when a driver deviates from an assigned route.
“It infuriates me. I don’t think they’re doing enough to protect women. Here they are promoting being a safe ride home," the woman told the Post, noting that she'd been an Uber VIP for five years. “I had no clue you would basically be on your own if this happens."
William A. Brewer III, partner at Brewer and counsel to "Jane Doe" said, "Uber knew that this car picked this woman up, they knew where the intended location was and they knew that this Uber driver stopped off route for 15 minutes. They knew it.
“They also know that thousands and thousands of women have been sexually assaulted before that night by their drivers, yet they’re advertising themselves as the safe alternative to a yellow cab or some other type of transit after dark,” he continued.
The National Law Journal Reports NRA's Claims Against Winston & Strawn Can Proceed
On October 23, 2020, The National Law Journal reported that Brewer, Attorneys & Counselors’ client, the NRA, can move forward with part of its lawsuit against Winston & Strawn.
According to the report, "Judge Robert Rigsby, of the District of Columbia Superior Court, said the NRA had 'sufficiently stated' a claim against Winston & Strawn for unjust enrichment, after an email allegedly revealed a Winston partner’s undisclosed ties to a neutral in an arbitration."
The lawsuit, filed July 29, 2020, in the Superior Court of the District of Columbia, alleges that in a recent arbitration, the NRA discovered on the eve of the final hearing that the arbitrator, Judge Richard Neville, was conducting a secret email discussion group – participated in by a senior partner of opposing counsel, Winston – where lurid white nationalist propaganda was shared and promoted. The communications revealed that Judge Neville shared a close, undisclosed relationship with Winston Partner Terry Grimm, according to the NRA. The NRA brought the action to recover amounts expended during the corrupted arbitration proceeding, and to uncover facts about the extent of the bias that tainted the proceeding.
“We appreciate the prompt attention of the court—and look forward to bringing the facts regarding Winston & Strawn’s undisclosed relationship with Judge Neville into full public view,” William A. Brewer III, partner at Brewer and counsel to the NRA, said in a statement. “This is a disturbing record. There should be no place in the legal profession that tolerates such racist communications—or which turns a blind eye to the principles that govern the sanctity of the arbitration process.”
Brewer Foundation Hosts FLP COVID-19 Care Package Giveaway
October 20, 2020 - The Brewer Foundation will host its first COVID-19 Care Package giveaway on Saturday, October 24, 2020. Future Leaders Program (FLP) staff and faculty will hand out packages to participating students that include an FLP face mask, hand sanitizer, canned goods and other items.
Founded in 2001, the FLP is an academic and leadership development program that serves deserving students from the Dallas Independent School District (DISD). The program provides academic resources and leadership development training to select students, ages 14-18, from economically challenged neighborhoods. Students are chosen for the FLP based on their scholastic aptitude, school attendance, civic involvement, and leadership potential.
A national model of public-private partnership, FLP classes typically take place on the campuses of the program's private school partners – St. Mark's School of Texas, Greenhill School, The Hockaday School and Episcopal School of Dallas. However, due to COVID-19, classes are currently taking place virtually.
News Release: Brewer, Attorneys & Counselors Names Cecelia L. Fanelli Partner and Expands Hospitality Practice
New York, NY… September 9, 2020 – Brewer, Attorneys & Counselors announced the addition of veteran hospitality attorney Cecelia L. Fanelli as a Partner in the firm’s New York office.
Fanelli is recognized as a leader in her field – achieving successful outcomes in some of the world’s most prominent hospitality cases.
“Cecelia’s considerable experience and winning track record are a huge asset for our clients in the hospitality sector and beyond,” said firm partner William A. Brewer III. “We are pleased to welcome her to our firm – and eager to continue the growth and expansion of our hospitality practice group.”
“This is an exciting time to join the Brewer firm – as it helps a growing roster of hospitality clients navigate unprecedented legal and business challenges,” Fanelli said. “The Brewer firm shares in my commitment to be at the leading edge of advocacy for owners, managers, and investors.”
Fanelli has served as an arbitrator in high stakes matters, particularly in the hotel industry. Since 2011, Chambers USA has ranked her in the Leisure & Hospitality, Nationwide category.
Her clients previously have included hotel owners, lenders, franchisees, franchisors, asset managers and management companies. Her successes include obtaining several multimillion-dollar recoveries in hotel industry and real estate litigation.
Additionally, Fanelli is active in transactions relating to hotel assets, including the negotiation and drafting of management agreements.
Fanelli has been named a Dean’s Distinguished Lecturer at the Cornell Hotel School. Fanelli received her Juris Doctor degree from Cornell Law School and a bachelor’s degree from the University of Pennsylvania. She was previously a Member at Eckert Seamans.
Cecelia L. Fanelli
Partner
ACLU Backs Brewer Client NRA After New York AG's Action
August 26, 2020 – The American Civil Liberties Union (ACLU) is backing Brewer, Attorneys & Counselors client the National Rifle Association (NRA) as New York Attorney General (NYAG) Letitia James attempts to dissolve the organization.
ACLU National Legal Director David Cole wrote a commentary published in The Wall Street Journal titled, “The NRA Has a Right to Exist: New York Attorney General Letitia James’ attempt to dissolve the 150-year-old organization is unconstitutional government overreach."
Cole writes that, “Our democracy is premised on the right of association. The First Amendment protects not only the right to speak, but also to band together with others to advance one’s views. Making or resisting change in a democracy requires collective action, and a healthy democracy therefore demands a robust ‘civil society.’ The right to associate can’t survive if officials can shut down organizations with which they disagree.”
Cole points out that the NRA’s lengthy history includes “a range of lawful and properly tax-exempt pursuits” – including teaching gun safety, educating the public and lobbying for gun rights laws.
He also observed that two years ago, the ACLU supported the NRA’s lawsuit against New York Governor Andrew Cuomo charging that he had violated the group’s First Amendment rights. Read more.
Brewer, Attorneys & Counselors Joins Law Firm Antiracism Alliance
August 25, 2020 — Brewer, Attorneys & Counselors announced that the firm has joined the Law Firm Antiracism Alliance (LFAA).
The LFAA strives to create partnerships between the private bar with legal services organizations to amplify the voices of communities and individuals oppressed by racism. The LFAA aims to use the law as a vehicle to create change that helps communities of color and promotes racial equity. More than 260 law firms have joined the organization since its founding. To learn more, visit here.
The Brewer firm has a long history of promoting civil rights and racial equality. The Brewer Storefront, the firm’s community service legal affiliate, has brought numerous successful Voting Rights Act lawsuits on behalf of African American and Latino voters across North Texas. As an example, the Storefront and its client, David Tyson, recently prevailed in a VRA lawsuit against the Richardson Independent School District. In 2001, the Brewer Foundation founded the Future Leaders Program, an academic and leadership development program that benefits minority children from urban communities within the Dallas Independent School District.
“We are proud to join the antiracism alliance and promote its ideals at this critical time,” says William A. Brewer III, partner at Brewer, Attorneys & Counselors. “We view our commitment to the alliance as an extension of our work to achieve justice for communities of color – through pro bono service and a commitment to urban education.”