Source: Reuters
Starwood Hotels & Resorts Worldwide Inc (HOT.N) recently filed legal documents accusing rival Hilton Hotels executive committee, including two former Starwood executives, of having involvement in theft of trade secrets last in 2009, according to court documents on file.
Starwood sued Hilton and two of its top executives for corporate espionage last April, accusing the pair of ex-Starwood workers of stealing trade secrets to speed Hilton’s entry into the “lifestyle” market.
Hilton said at the time that the lawsuit was without merit.
The amended complaint claims that Hilton’s Chief Executive Christopher Nassetta and its head of global development, Steven Goldman, also knew of the theft of Starwood’s confidential information.
New York employment issues in hotels
Other hotel cases in the past have involved some workers in New York hotels, according to documents filed by a local Brooklyn discrimination attorney, but there are no indications that the employees were Hilton or Starwood workers. New York employment lawyers have their hands full of cases involving complaints filed by union workers who claim to have been denied fair pay, holiday coverage, overtime and health benefits.
Starwood has now asked the court to appoint one or more “monitors” to ensure Hilton’s compliance with all injunctions and the imposition of a “penalty box” or “time out” period for any further development of Hilton’s luxury and lifestyle brands.
Hilton could not be immediately reached for comment outside regular U.S. business hours.
The lawsuit was filed in the U.S. Southern District of New York. The case number is: U.S. 09 CIV 3862.
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My take: If these two Starwood executives did know about or have some involvement in the theft of trade secrets from their former employer in an attempt to help Hilton get a leg up, they are in for a bumpy ride legally.
But in general, travel industry experts say the case won’t matter much for either hotelier when it comes to their business outlook: Hotel revenues across the board are said to be down by roughly 34% from where they were a year ago, thanks to the slumping economy.
Business for lawyers, however, is on the rise, as more couples file for divorce in New Jersey, for example, over financial strains, job losses and other issues that things couldn’t be rosier for the average divorce lawyer. I’d imagine too, that if you are a visitation lawyer, have also got their hands full trying to work with couples in sorting out custody issues.
This trend in marriage breakups is not exclusive to any particular part of the country, and I suspect that if you are a divorce lawyer Denver, or any other city on the West coast, you’ve also seen a lot of cases involving divorce.
And, the economy’s links to the meltdown of the real estate industry is also seeing a lot of action. Loan modification scams and other issues are on the rise in cities all over California, such as San Diego. I’d expect any real estate attorney to be busy with those types of cases.
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