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Published on: April 17, 2007

Hotel Lawyer: Disastrous wage and hour decision. California Supreme Court makes it a dark day for employers. Murphy v. Kenneth Cole Productions, Inc. (decided April 16, 2007)

By Jim Butler and the Global Hospitality Group®

Author of www.HotelLawBlog.com 17 April 2007
Hotel Lawyer with landmark labor and employment decision from the California Supreme Court on wage and hour issues. Wage and hour claims are serious matters for employers, because they typically involve class actions with lots of current (and former employees), and the claims can cover a long period of time. They are also particularly bad for the hospitality industry because so many employees are nominally “exempt” employees–managers or assistant managers–by their titles, but not under California legal standards. (See prior postings on www.HotelLawBlog.com under the Topic of “Labor & Employment” such as New law on who is a “supervisor” can even the playing field for employers a bit.)

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Published on: November 14, 2006

Hotel Labor & Employment Lawyer Report — Sutter Health Implications Part II

By Jim Butler and the Global Hospitality Group®

Author of www.HotelLawBlog.com
14 November 2006
Hotel Lawyer on hotel labor and employment issues. Yesterday, I discussed the record jury verdict against Unite Here in the Sutter Health case where a Superior Court jury in rural Placer County California found Unite Here guilty of “fraud, malice or oppression.” The jury hit the union with a $17.3 million verdict for intentionally and maliciously acting to harm the business of the Sutter Health not-for-profit hospitals and birthing clinics. As usual, I looked to Marta Fernandez, my hotel labor attorney partner, for insight and guidance. Yesterday, she gave us 9 points to think about as to the significance of the case — what it all means. But she saved some real gems for today’s short blast. Here they are.

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Published on: November 13, 2006

Hotel Labor & Employment Lawyer Report — Unite Here gets slapped for outrageous behavior! Sutter Health Implications Part I

By Jim Butler and the Global Hospitality Group®

Author of www.HotelLawBlog.com
13 November 2006
Hotel Lawyer on hotel labor and employment issues. On July 21, 2006, a Superior Court jury in rural Placer County California — where you still expect jurors to know the value of a dollar — found Unite Here guilty of “fraud, malice or oppression.” This time, Unite Here — the union that represents hotel and hospitality workers — was caught red handed in its typical outrageous behavior. And it got slapped … but good. The jury hit the union with a $17.3 million (actually $17,292,850) verdict for intentionally and maliciously acting to harm the business of the Sutter Health not-for-profit hospitals and birthing clinics. This is one of the biggest verdicts ever awarded against a labor union in the United States. As usual, I looked to Marta Fernandez, my hotel labor attorney partner, for insight and guidance.

Marta says, “This case is another very important one for all employers. It is right up there with Oakwood and Cintas. It is both educational as to the ‘hard ball’ tactics Unite Here regularly employs, shows the union’s true colors, and demonstrates that when employers will stand up to outrageous union threats and behavior, they finally may be vindicated and justified.” Listen to this story! If you are an employer, it will warm your heart. If you are a callow union boss, it should give you second thought.

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Published on: October 31, 2006

Hotel Labor & Employment — Unite Here goes too far. Class action suit by employees for invasion of privacy provides critical limits on union organizing activities.

By Jim Butler and the Global Hospitality Group®

Author of www.HotelLawBlog.com
31 October 2006
Hotel Lawyer on labor and employment developments. It has now been several years since Unite Here targeted the hospitality industry with its organizing efforts. Their tactics have been extremely aggressive. At a macro level, the unions have poured resources into political campaigns across the country and are not shy about calling in favors from those they help elect. And of course, in 2006, we saw the fruits of a huge effort to time union contract expirations to hit at the same time in order to maximize leverage (see my earlier postings about the union campaign). At a micro level, the unions have also stepped up their pressure — buying 5 or 6 shares of stock and playing havoc with public companies (for example, trying to sabotage the CNL public offering), creating web sites to “educate” investors about target companies (with abusive and damaging stories about bad management, poor investment returns) and to generally embarrass and financially harm employers and their management. Fortunately, for employers, there have recently been significant wins in the ongoing struggle (such as the Oakwood Healthcare case) and one of those deserves mention today.

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Published on: October 5, 2006

Hospitality Lawyer insights on Unite Here union deal with Beverly Hilton. What does it mean?

By Jim Butler and the Global Hospitality Group®

Author of www.HotelLawBlog.com
5 October 2006
Quick settlement with the union.

The Beverly Hilton hotel is expected to announce today (October 5, 2006) that it has signed a three year contract with Unite Here, according to Alana Semuels, Los Angeles Times Staff Writer. Both sides are claiming victory with the announcement of a quick resolution, along with increased wages, maintaining the current health benefits and a commitment to hire more African Americans. But beyond that, what is the significance of this settlement for others who may be sitting on the other side of the table, facing the union soon–whether in New York, Chicago, San Francisco, Washington, DC, Honolulu, Toronto or elsewhere?

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Published on: October 5, 2006

Hospitality Law Alert: Employers win! Unions fret. New law on who is a “supervisor” can even the playing field for employers a bit.

By Jim Butler and the Global Hospitality Group®

Author of www.HotelLawBlog.com
5 October 2006
If you have any interest regarding unionization of your hotel, a landmark decision has just been issued by NLRB. To understand the significance of this development, I have turned to my partner, Marta Fernandez, a hospitality lawyer who is a senior member of our Global Hospitality Group and the Labor & Employment Group of Jeffer, Mangels, Butler & Marmaro LLP.

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Published on: September 30, 2006

Hotel Lawyer: What to do when the hotel union comes knocking! Neutrality agreements, card-check agreements and peace agreements.

By Jim Butler and the Global Hospitality Group®

Author of www.HotelLawBlog.com
30 September 2006
One of the top priorities of the Unite Here over the past two years has been obtaining neutrality agreements (also sometimes called card-check agreements or peace agreements). See yesterday’s posting and many of the newspaper articles referenced below). So what do you do when the union is at your door — whether you are a union hotel (not covered by a Multi-Employer Group contract), a non-union hotel, or a developer waiting to break ground?

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Published on: September 29, 2006

Hotel Lawyer — What do the hotel unions want? What can you do?

By Jim Butler and the Global Hospitality Group®

Author of www.HotelLawBlog.com
29 September 2006
This has been a busy year for the hotel unions such as UNITE HERE. The union’s latest action yesterday in closing down the main corridor to LA’s International Airport with sit-ins in the middle of Century Boulevard garnered significant media attention. More than 300 were arrested in a demonstration “choreographed” with city officials and police. The protest was part of the union’s effort to organize 13 non-union hotels ostensibly to publicize the treatment of immigrants by the non-union airport hotels.

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Published on: September 27, 2006

Los Angeles Hotel Union Protest Tomorrow

By Jim Butler and the Global Hospitality Group®

Author of www.HotelLawBlog.com
27 September 2006
UNITE HERE hotel union officials announced that they are scheduling a protest for tomorrow afternoon (September 28) at 4:30 pm during rush hour traffic with the intent to close down Century Boulevard–one of the main corridors to and from LAX.

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Published on: September 23, 2006

Hotel Lawyer: Local 2 Contract Approval: What Does It Mean?

By Jim Butler and the Global Hospitality Group®

Author of www.HotelLawBlog.com
23 September 2006
At a little after 7 p.m. on Saturday, September 22, 2006, CBS reported that Local 2 of UNITE HERE announced that the rank-and-file had approved the tentative contract negotiated with the 13 Multi-Employer Group (MEG) hotels. The union said that 99% of the workers voting approved the contract.

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Jim Butler

Jim Butler is recognized as one of the top hotel lawyers in the world. He devotes 100% of his practice to hospitality, representing hotel owners, developers and lenders. Jim leads JMBM’s Global Hospitality Group® — a team of seasoned professionals who have helped clients around the world with more than 4,700 hospitality properties worth more than $125 billion.
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Robert Braun

Robert Braun is a partner in JMBM's Corporate Department and a senior member of JMBM's Global Hospitality Group® -- a team of seasoned professionals who have helped clients around the world with more than 4,700 hospitality properties worth more than $125 billion. Bob represents owners in both transactional and operational issues. He advises clients with respect to business formation, financing, mergers and acquisitions, venture capital financing, joint ventures and strategic partnerships. He has represented hotel owners in the negotiation of several hundred management agreements, as well as spa management and franchise agreements. Bob also advises hotel owners regarding telecommunications, software, internet, e-commerce, data processing and outsourcing agreements. To read Bob's articles, go to www.HotelLawBlog.com and select "Management Agreements." For more information, please contact Bob Braun at 310.785.5331 or rbraun@jmbm.com.

Marta Fernandez

Marta Fernandez is a partner in JMBM's Employment and Labor Department and a senior member of JMBM’s Global Hospitality Group® -- a team of seasoned professionals who have helped clients around the world with more than 4,700 hospitality properties worth more than $125 billion. As a management labor lawyer with more than 20 years of experience, Marta specializes in representing hospitality industry clients in all aspects of labor and employment including labor-management relations such as union prevention, collective bargaining for single as well as multi-employer bargaining units, neutrality agreements and defense of unfair labor practice charges before the NLRB. She defends employers in administrative and litigation claims, such as employee claims of sexual harassment and discrimination and counsels clients in preventative strategies such as executive training, arbitration enforcement, and policies and procedures. To read Marta's articles, go to www.HotelLawBlog.com and select "Labor & Employment." For more information, please contact Marta Fernandez at 310.201.3534 or at mfernandez@jmbm.com.

Guy Maisnik

Guy Maisnik is a partner in JMBM's Real Estate Department and a senior member of JMBM's Global Hospitality Group® -- a team of seasoned professionals who have helped clients around the world with more than 4,700 hospitality properties worth more than $125 billion. Guy's deep and broad transactional practice includes complex real estate finance and venture capital transactions, including project finance, commercial finance, leveraged leasing and real estate acquisitions. He assists clients with development, leasing and disposition, loan portfolio acquisitions, loan and debt restructure, workouts and real estate exchanges. Go to www.HotelLawBlog.com for current information in these areas. For more information, please contact Guy Maisnik at 310.201.3588 or mgm@jmbm.com.

David Sudeck

David Sudeck is a Partner in JMBM's Real Estate Department and a senior member of JMBM’s Global Hospitality Group® -- a team of seasoned professionals who have helped clients around the world with more than 4,700 hospitality properties worth more than $125 billion. David has significant experience in the vacation ownership arena, focusing on the formation and registration of condominiums, timeshares and fractional interest regimes. He negotiates hotel, spa and restaurant management agreements, and assists client in the development, acquisition, sale and leasing of hotels, golf courses and restaurants. For David's take on current issues in the timeshare arena, go to www.HotelLawBlog.com and click on the topic, "Timeshare." For more information, please contact David Sudeck at 310.201.3518 or dsudeck @jmbm.com.

Robert Kaplan

Robert Kaplan is a partner in JMBM's Bankruptcy, Insolvency and Restructurings Group and a senior member of the Global Hospitality Group® -- a team of seasoned professionals who have helped clients around the world with more than 4,700 hospitality properties worth more than $125 billion. Bob represents lenders, special servicers, hard money lenders, community banks, national banking associations, distressed debt investors, and equity investors, positioning them for the best possible outcome by acting expeditiously to preserve value and increase cash flow. His industry experience and his knowledge of the current capital markets -- where distressed assets often include complex deal structures and securitized loans -- allows him to bring creative and effective strategies to the table. When aggressive litigation is the best strategy, he is a vigorous and effective advocate for his clients. Bob represented the securitized lender in the Chapter 11 bankruptcy case filed by the Clift Hotel in San Francisco, and in the subsequent negotiations and successful sale of the loan to a third party. The lender -- acting by and through GMAC Commercial Mortgage Corporation as special servicer -- was the holder of a $60 million loan secured by a Deed of Trust on the Clift Hotel. He has also served as counsel to CapMark, J.E. Robert Company, Inc., AMRESCO Management Inc. and Midland Loan Servicer in their capacity as special servicers on troubled hotel loans in CMBS pools. For more information, contact Robert Kaplan at 415.984.9673 or rkaplan@jmbm.com.

Martin Orlick

Martin Orlick is a partner in JMBM's Real Estate Department and a senior member of JMBM's Global Hospitality Group® -- a team of seasoned professionals who have helped clients around the world with more than 4,700 hospitality properties worth more than $125 billion. Marty specializes in representing hospitality industry clients in Americans With Disabilities Act (ADA) compliance and defense. He has represented more than 500 businesses in ADA issues, many of them hotels and restaurants, as well as hotel mixed-use properties. Marty is a member of the American College of Real Estate Lawyers (ACREL) and a frequent speaker on the ADA and other topics. To read Marty's articles, go to www.HotelLawBlog.comand select "ADA." For more information, please contact Marty Orlick at 415.984.9667 or morlick@jmbm.com.

Scott Brink

Scott Brink is a senior member of JMBM's Global Hospitality Group® and a partner in JMBM's Labor & Employment Law Department. Scott is a management labor lawyer with more than two decades of experience representing employers in all aspects of labor relations and employment law including union prevention, collective bargaining negotiations, defense of unfair labor practice charges before the NLRB, wrongful discharge litigation, individual and class action employment discrimination and wage-and-hour claims, sexual-harassment litigation, arbitrations, personnel policies, California wage and hour law, and employee discipline and discharge. An experienced trial attorney, Scott has litigated a number of high-profile and complex cases involving a wide range of labor and employment law matters. For more information, contact Scott Brink at RSB@jmbm.com or 310.785.5365.

Travis Gemoets

Travis Gemoets is an experienced trial attorney and represents management in all facets of labor and employment law, including wage/hour class actions, claims of discrimination, harassment, wrongful termination, trade secrets and unfair competition, union/management relations and workplace violence. He is a member of JMBM's Global Hospitality Group(r), in which capacity he negotiates union contracts and resolves labor disputes throughout the country, defends class action claims, develops strategies for the mass onboarding and separation of employees, and recommends proactive changes to employers' policies and practices in order to minimize potential liability risks. Reach him at 310.785.5387 or tgemoets@jmbm.com.

Mark S. Adams

Mark S. Adams is an experienced trial lawyer and a member of JMBM's Global Hospitality Group® and Chinese Investment Group™. He focuses his practice on business litigation including contracts, corporate and partnership disputes, and hospitality disputes and litigation. On behalf of hotel and resort owners, Mark has successfully litigated the termination of long-term, no-cut, hotel management agreements, franchise agreements, fiduciary duty issues, investor-owner disputes, TOT assessments, and more. He has wide-ranging trial experience in a variety of commercial disputes, including complex multi-party litigation and class actions. He has tried numerous cases in state courts, federal courts, and in domestic and international arbitrations, and is a frequent author and speaker on trial practice. Mark's trial wins have been covered by Forbes, Reuters, and other publications. He has obtained two of California's annual 50 largest jury verdicts in the same year. Mark has taken or defended nearly 1,000 depositions throughout North America, Europe and the Middle East. He has been quoted as an expert on noncompete agreements in the Wall Street Journal. For more information, contact Mark at 949. 623.7230 or markadams@jmbm.com.

Bennett Young

Bennett Young is a partner in JMBM's Bankruptcy, Insolvency and Restructurings Group and a senior member of the Global Hospitality Group® -- a team of seasoned professionals who have helped clients around the world with more than 4,700 hospitality properties worth more than $125 billion. His clients include lenders, financial institutions, secured and unsecured creditors, distressed investment funds, businesses, receivers, special servicers and creditors' committees. Ben represented the owner of a partially completed multi-billion dollar resort property in the restructuring of its finances and has represented lenders to hotels and casinos. For more information, contact Ben Young at 415.984.9626 or byoung@jmbm.com

Sheri Bonstelle

Sheri Bonstelle is a partner in JMBM's Government, Land Use, Environment and Energy Department, and a member of JMBM's Global Hospitality Group®. She represents owners and developers in land use, zoning, environmental, litigation and construction matters. She manages all aspects of the entitlement process, including representing clients before local and state agencies, commissions and councils. Sheri also represents clients in a variety of land use and real estate litigation matters in state and federal courts, including cases arising under CEQA and other environmental laws. Her hotel experience includes handling the adaptive reuse of an historic office building as a luxury boutique hotel. For more information, please contact Sheri Bonstelle at 310.712.6847 or SBonstelle@jmbm.com.

Kevin McDonnell

Kevin McDonnell is a partner in JMBM's Government, Land Use, Environment and Energy Department, and a member of JMBM's Global Hospitality Group®. Kevin represents developers and owners of hotels in a broad range of land use and zoning issues including entitlements, code enforcement, easements and parking requirements, as well as related Parcel Map and Tract Map subdivision issues. His hospitality experience includes hotels, condo-hotels and mixed-use projects. A registered Civil Engineer and Structural Engineer in California, and a former building official for the City of Los Angeles, Kevin brings unique experience and insight in Zoning and Building Code applications and Code Enforcement issues. For more information, please contact Kevin McDonnell at 310.201.3590 or kkm@jmbm.com.

Jamie Ogden

Jamie Ogden is a tax lawyer at Jeffer Mangels Butler & Mitchell LLP. He advises individuals and businesses on a range of tax planning, tax controversy and estate planning matters. Jamie’s experience includes all tax aspects with respect to the hospitality industry, including acquisitions and dispositions (including Section 1031 exchanges), financing and management agreements. He also serves as lead tax counsel on M&A transactions, financing, internal corporate restructurings and deferred compensation matters. Jamie also works frequently with litigators on the tax aspects of litigation, judgments and settlements. Jamie has extensive experience with foreign compliance matters, including each variation of the IRS amnesty programs. In addition to his experience in private practice, Jamie also brings several years of service from both state and federal government. For more information, contact Jamie at JOgden@jmbm.com or 310.201.3510.

Wei Deng

Wei Deng is General Counsel of Bosen American Capital, Inc. where in addition to his legal duties, he is responsible for sourcing, evaluating and proposing United States investment opportunities to the company. Wei was previously with JMBM, where he focused on transactional and litigation matters.

Jay Thompson

Jay Thompson has extensive experience representing private companies, business owners, family offices and investors in mergers and acquisitions, private equity and venture capital transactions and private securities offerings. Jay serves as general counsel to many of his clients, their management, and board of directors, helping to shape and execute their business strategies, facilitate growth and liquidity, as well as to advise them on day-to-day legal and other strategic issues. He is known for his practical approach to business issues. Contact Jay at JThompson@jmbm.com or 949.623.7258

Marianne Martin

Marianne Martin has nearly fifteen years of experience advising clients on a variety of commercial, financing, bankruptcy, restructuring and M&A matters, with a particular niche dealing with distressed and/or turnaround situations. Her clients frequently include private equity and hedge funds, independent sponsors, family offices, public and private corporations, financial institutions and banks, healthcare-related companies, municipalities and venture capital funds. She has represented clients in various capacities, including as borrowers/debtors, lenders, acquirers, and agents/trustees in negotiating and documenting complex commercial transactions, out-of-court restructuring transactions and advising on purchasing considerations in secondary market debt transactions. Contact Marianne at MMartin@jmbm.com or 310.201.3531

Trevor Countryman

Trevor Countryman is an associate in the firm's Real Estate Department. He advises clients in all aspects of real estate transactions including property acquisitions and dispositions, financing, leasing, development and construction. Trevor's clients range from large funds to individual developers and opportunistic investors, engaged in deals involving office, retail, multi-family, single-family, mixed-use and hotel properties. Contact Trevor Countryman at 310.201.3546 or TCountryman@jmbm.com.

Vanessa Han

Vanessa Han is an associate in JMBM's Corporate group. Vanessa can be reached at VHan@jmbm.com or 310.785.5383

Vince Farhat

Vince Farhat is Chair of JMBM's White Collar Defense and Investigations practice. Vince has extensive jury trial experience and focuses his practice on representing companies and individuals in criminal and civil investigations and prosecutions by government enforcement agencies, as well as complex federal litigation. He also advises companies in connection with complex and sensitive internal investigations. Prior to joining JMBM, Vince served as an assistant United States attorney in the Major Frauds Section of the U.S. Attorney's Office for the Central District of California. Contact Vince Farhat at 310.785.5382 or VFarhat@jmbm.com.

Ask the Hotel Lawyer™ is a quarterly column that I write for JMBM's Global Hospitality Advisor®. If you have a question you would like to submit to Ask the Hotel Lawyer™ please use the comments box below. While your question may not be of sufficient general interest for the column, I will try to respond to you individually if you leave your contact information below.
Jim Butler.