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HOSPITALITY LITIGATION

  • Franchise disputes
  • Management agreement disputes
  • Land use issues
  • Lease disputes
  • Vendor disputes
  • Construction disputes
  • Unfair business practices claims

For more than 25 years, Mazzarella & Mazzarella, and its predecessor firms, have represented a wide assortment of individuals and companies engaged in the hospitality industry.  We have represented the owners of numerous large full service hotels in disputes with their management companies and franchisors, including, The San Diego Marriott Hotel & Marina, The Manchester Grand Hyatt, The Grand Del Mar, The U.S. Grant, the Pasadena Doubletree  and The Portola Hotel & Spa at Monterey Bay (Formerly the Monterey Doubletree. We also have represented many owners of limited service hotel and motel properties, as well as a variety of bar, restaurant and golf club owners and operators.

After decades of working closely with the owners and operators of hotels, motels, restaurants, bars and golf clubs, we know the hospitality business well, not just the law that applies to it. Whether you have a dispute with a management company, franchisor, supplier, landlord, or governmental agency, we’ve “been there, done that.”  The breadth of our experience is reflected in the list of representative cases below.

REPRESENTATIVE CASES

  • We have sued management companies for damages on behalf of full service hotel owners resulting in settlements valued at $70 million in one case and $50 million in another.
  • We have represented several hotel owners who successfully terminated long-term management agreements or franchise agreements with major “branded” management companies.  In one case, we found over 100 different ways that the management company either was over-charging for its services, or using the owner’s property without compensation. In every case, we’ve found dozens of improprieties by the management companies.
  • We have sued successfully to terminate franchise agreements based on allegations that frequent quest programs imposed unfair and disproportionate burdens on our client’s properties.
  • We prevented a lender from calling a $100 million loan secured by a hotel tower when a second, adjacent, tower was built. We successfully argued that the provision in the loan documents  that allowed the bank to call the loan in the event a second tower was built violated  California Business & Professions Code section 16600, which invalidates any contract which restricts an individual’s right to practice his trade or profession.
  • We have successfully asserted territorial restrictions on behalf of both limited service and full-service hotels.
  • We have defended restaurant and bar owners in actions by the City of San Diego and The Alcohol, Beverage Control Board alleging violations of live music ordinances and other “anti-cabaret” restrictions.
  • We recently recovered a $2.8 million judgment on a cross-complaint we filed on behalf of a restaurant and bar owner whose business failed due to inadequate air conditioning. We also obtained a defense verdict on the landlord’s complaint which sought $2,000,000 in damages against our client for breach of the lease.
  • We have successfully challenged non-compete provisions on behalf of the head of a major golf course management company.
  • We have represented numerous owners of shopping centers and shopping center tenants in a wide variety of disputed, such as exclusivity provisions, express and implied covenants of continuous operation, options to extend and NNN allocations.

REPRESENTATIVE CLIENTS

  • Manchester Financial Group (The San Diego Marriott Hotel & Marina, The Manchester Grand Hyatt, The Grand Del Mar, The Lodge at McCall, Idaho)
  • The Douglas Wilson Companies
  • McGuire Partners (The Pasadena Double Tree)
  • Custom House (The Monterey Doubletree, now the Portola)
  • Historic Hotel Partners of San Diego (The U.S. Grant)
  • Kelly Capital/Kelly Investments (Kelly Restaurant Group)
  • Heritage Golf
  • The East Village Owners Association
  • Seven Seas Associates  (Mission Valley Best Western)
  • Arena Group 2000 (The San Diego Sports Arena)

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