Most Read Contributor in Hong Kong, September 2016
Keywords: termination, management agreements,
hotel owners, takeovers
Over the past few years, there has been an increasing number of
lawsuits in the United States where hotel owners have resorted to
ousting their operators in the middle of the night. Examples
include the attempted midnight takeover of the Four Seasons
Residence Club Aviara in 2009 and the successful midnight takeovers
of the Waikiki Edition and the Fairmont Turnberry Resort in 2011.
The owner attempted to oust their operator without notice, relying
on their common law right as "principal" to revoke the
appointment of their agent (hotel operator). It is worth noting
that in such cases, the owner is typically facing a potentially
very substantial damages claim for wrongful termination. However,
this may be scant consolation for an operator who thought that they
had a robust 20-to-30-year term contract. This article explores the
issue of "agency termination" in Hong Kong and other
common law jurisdictions in Asia whilst briefly looking at the
issue under PRC law.
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This article provides information and comments on legal
issues and developments of interest. The foregoing is not a
comprehensive treatment of the subject matter covered and is not
intended to provide legal advice. Readers should seek specific
legal advice before taking any action with respect to the matters
discussed herein. Please also read the JSM legal publications
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The process for obtaining planning permission for development of property in the Cayman Islands has been updated as a result of the latest revision of the Development and Planning Law and accompanying regulations (July 2015).
In principle, when the parties agree to arbitrate, they shall be
bound by that agreement. It should therefore follow that when a
party initiates arbitration proceedings, the other party - the
respondent – will avail itself of the opportunity to present
its case and participate in the proceedings.
It is interesting to look at what is happening in Dubai's construction industry, which has been exposed to economic pressures as a result of the plunge in oil prices since mid-2014.
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