Hotel & Motel Management - March 2009 - (Page 10)

H&MM March 2009 | HotelWorldNetwork.com 10 Legally Speaking BY KAREN MORRIS “Defamation requires a false statement.” he relationship between business partners is tricky. Case in point: a recent lawsuit brought by Best Western International against some of its members. Websites can weave a tangled web in business dealings T The underlying dispute was described by the court as a “bitter and expensive battle.” Defendants created a website on which they criticized Best Western. Complaints included a proposed new corporate bylaw provision that would shift control from the members to the board of directors, questionable management practices and withholding of ﬁnancial information. The postings singled out one board member and asked for his removal. Best Western claimed the statements caused many members to disafﬁliate, resulting COMMITMENT TO QUALITY COMMITMENT TO CLIENTS Total Construction Project Management • National / International Construction & Renovation Capabilities • Specialists in Hospitality Construction & Franchise Requirements • Architectural, Engineering & Interior Design Coordination • Budgeting & Estimating / Value Engineering in a loss of $23 million. Best Western sought recovery of this amount based on allegations of a variety of legal wrongs, including defamation. To establish a claim for defamation, the plaintiff must prove that statements made were untruthful and exposed the plaintiff to ridicule or scorn. As their defenses, the members asserted the material on the website was true, constituted opinions or was protected by the common interest privilege. Defamation requires a false statement. Assertions that are true are protected by the right of free speech. Thus, we can generally make truthful comments no matter how much ridicule they cause. Opinions also are protected and do not fall within the ambit of defamation. TAKEAWAY The common A legal interest privilege dispute between business permits comment partners can be on a topic, messy, so it’s without fear of best to know the a defamation ins, outs and in-betweens of lawsuit, when the law. the speaker and audience have a common interest in the subject. In this case, the court held that all members have an interest in corporate operations. But this ﬁnding did not end the inquiry. If the information is made available to others who do not have a common interest, the privilege is lost. While the site is now password-protected, initially it was not. Access by non-members and competitors would exceed the boundaries of the privilege. For a variety of reasons, the court determined that Best Western failed to prove the defamation claim against the members and so dismissed it. hmm@questex.com Karen Morris is a lawyer, municipal judge and Distinguished Professor at Monroe Community College in Rochester, N.Y., where she teaches hospitality law. Contact her at kmorris222@yahoo.com. A Hospitality Company in the Construction Business COMMITMENT TO RESULTS IDC Construction, LLC 1000 Churchill Court. Woodstock, GA 30188 p 678.213.5263 info@idcconstruction.com www.IDCConstruction.com CIRCLE NO. 119 Photographs courtesy of LXR Luxury Resorts & Hotels http://www.HotelWorldNetwork.com http://www.IDCConstruction.com http://www.IDCConstruction.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - March 2009

Hotel & Motel Management - March 2009 Contents News Perspective Green Focus Legally Speaking Franchise Law Sales Clinic Legal FAQ Trends & Stats Timeshare On Finance Management Companies Stuggle to Cut Costs While Keeping Guest Satisfaction Up Top Third-Party Management Companies Chart Hot Products Technology Marketplace Ad/Editorial Index Checking Out

Hotel & Motel Management - March 2009

Hotel & Motel Management - March 2009 - Hotel & Motel Management - March 2009 (Page Cover1) Hotel & Motel Management - March 2009 - Hotel & Motel Management - March 2009 (Page Cover2) Hotel & Motel Management - March 2009 - Contents (Page 3) Hotel & Motel Management - March 2009 - News (Page 4) Hotel & Motel Management - March 2009 - News (Page 5) Hotel & Motel Management - March 2009 - Perspective (Page 6) Hotel & Motel Management - March 2009 - Perspective (Page 7) Hotel & Motel Management - March 2009 - Green Focus (Page 8) Hotel & Motel Management - March 2009 - Green Focus (Page 9) Hotel & Motel Management - March 2009 - Legally Speaking (Page 10) Hotel & Motel Management - March 2009 - Legally Speaking (Page 11) Hotel & Motel Management - March 2009 - Franchise Law (Page 12) Hotel & Motel Management - March 2009 - Franchise Law (Page 13) Hotel & Motel Management - March 2009 - Sales Clinic (Page 14) Hotel & Motel Management - March 2009 - Sales Clinic (Page 15) Hotel & Motel Management - March 2009 - Legal FAQ (Page 16) Hotel & Motel Management - March 2009 - Legal FAQ (Page 17) Hotel & Motel Management - March 2009 - Trends & Stats (Page 18) Hotel & Motel Management - March 2009 - Trends & Stats (Page 19) Hotel & Motel Management - March 2009 - Timeshare (Page 20) Hotel & Motel Management - March 2009 - Timeshare (Page 21) Hotel & Motel Management - March 2009 - On Finance (Page 22) Hotel & Motel Management - March 2009 - On Finance (Page 23) Hotel & Motel Management - March 2009 - Management Companies Stuggle to Cut Costs While Keeping Guest Satisfaction Up (Page 24) Hotel & Motel Management - March 2009 - Management Companies Stuggle to Cut Costs While Keeping Guest Satisfaction Up (Page 25) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 26) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 27) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 28) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 29) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 30) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 31) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 32) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 33) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 34) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 35) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 36) Hotel & Motel Management - March 2009 - Hot Products (Page 37) Hotel & Motel Management - March 2009 - Technology (Page 38) Hotel & Motel Management - March 2009 - Technology (Page 39) Hotel & Motel Management - March 2009 - Technology (Page 40) Hotel & Motel Management - March 2009 - Technology (Page 41) Hotel & Motel Management - March 2009 - Technology (Page 42) Hotel & Motel Management - March 2009 - Technology (Page 43) Hotel & Motel Management - March 2009 - Marketplace (Page 44) Hotel & Motel Management - March 2009 - Marketplace (Page 45) Hotel & Motel Management - March 2009 - Marketplace (Page 46) Hotel & Motel Management - March 2009 - Marketplace (Page 47) Hotel & Motel Management - March 2009 - Ad/Editorial Index (Page 48) Hotel & Motel Management - March 2009 - Ad/Editorial Index (Page 49) Hotel & Motel Management - March 2009 - Ad/Editorial Index (Page 50) Hotel & Motel Management - March 2009 - Ad/Editorial Index (Page 51) Hotel & Motel Management - March 2009 - Ad/Editorial Index (Page 52) Hotel & Motel Management - March 2009 - Ad/Editorial Index (Page 53) Hotel & Motel Management - March 2009 - Checking Out (Page 54) Hotel & Motel Management - March 2009 - Checking Out (Page Cover3) Hotel & Motel Management - March 2009 - Checking Out (Page Cover4) 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