SINGAPORE – Following two years of arbitration proceedings in Florida after the forceful takeover of The Setai Miami by its owner, Lehman Brothers, in the pre-dawn hours of March 31, 2012, the ICC International Court of Arbitration ruled yesterday that all previous allegations of mismanagement were baseless and have awarded damages to GHM for improper termination of GHM’s hotel management agreement.
In its findings, the Tribunal concluded that GHM complied with the contract in all respects and chided the owner’s attempts to find excuses to terminate the management agreement.
Even Lehman’s own expert at the trial had “conceded that GHM achieved RevPAR levels that were 76 percent higher than the competitive set, and despite his many years of experience in the hotel business, he could not recall any other hotel that had consistently earned such a RevPAR premium over its competitors.”
“Needless to say, we are very pleased with the Tribunal’s conclusion, along with the complete and total legal victory. More importantly, it vindicates GHM of the wrongful accusations and upholds our reputation as a hotel management company of the highest repute and caliber,” said GHM President Hans R. Jenni.
Said Daniel F. Benavides, legal counsel for GHM, “This was a hard-fought case. But ultimately the Tribunal found that all of Lehman’s accusations of mismanagement were entirely unfounded. The Tribunal also went out of its way to recognize the many impressive accolades received by the Setai under GHM’s management and that GHM’s efforts and reputation were primarily responsible for the condo-hotel’s record breaking success. This is a well-deserved victory for GHM. We could not be happier for such an outstanding group of professionals.”
Lehman is given 30 days from the date of the Tribunal’s decision to make full compensation to GHM.