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GREEN ISLE PARTNERS v THE RITZ-CARLTON HOTEL CO Click to find out why . . .



Keywords & Phrases
CaseNo: C.A. No. 18,416, CourtCode: CC, CourtName: E J A C O B S COURT HOUSE, Plaintiff: GREEN ISLE PARTNERS, State: DE Delaware, UniqueCaseRef: DE>CC>00018416, Green Isle, Ritz-carlton, Hotel, Books, Agreement, Operating Agreement, Hotel Operating Agreement, Parties, Affiliates, Contract, Prejudice, Motion, Agent, Obligations, Principals, Puerto Rico, Accounting, Transactions, Delaware, Nondisturbance Agreement, Agency, Provisions, Complaint, Dismiss, Mcdaniel, Georgia Law, Inspection, Del, Owner, Confidentiality, Stored Files, Ritz-carlton Hotel Company, Principal-agent, Paragraph, Chancery, Tdf, Proposed Order, Representatives, Defendants Admit , ContentID: 120239643

Case Documents
1 2001-10-15 REPLY MEMORANDUM IN SUPPORT OF PLAINTIFFS MOTION TO DISMISS OR STAY
[ see first page and extracted highlights below  ] ItemID: 127238
13 pages
PDF
2 2001-09-24 DEFENDANTS ANSWERING BRIEF IN OPPOSITION TO PLAINTIFFS MOTION TO DIMISS WITHOUT PREJUDICE OR TO STAY
[ see first page and extracted highlights below  ] ItemID: 127182
17 pages
PDF
3 2001-06-15 DEFENDANTS SECOND POST-TRIAL BRIEF
[ see first page and extracted highlights below  ] ItemID: 115393
45 pages
PDF
4 2001-05-25 PLAINTIFFS OPENING POST-TRIAL BRIEF
[ see first page and extracted highlights below  ] ItemID: 115394
44 pages
PDF
5 2001-05-01 LETTER OPINION
[ see first page and extracted highlights below  ] ItemID: 114881
4 pages
PDF
6 2001-04-24 PLAINTIFFS REPLY POST TRIAL BRIEF
[ see first page and extracted highlights below  ] ItemID: 115395
17 pages
PDF
7 2001-04-04 DEFENDANTS POST-TRIAL BRIEF
[ see first page and extracted highlights below  ] ItemID: 115396
38 pages
PDF
8 2001-03-07 PLAINTIFFS POST-TRIAL BRIEF
[ see first page and extracted highlights below  ] ItemID: 115397
23 pages
PDF
9 2000-12-11 PLAINTIFFS REPLY PRETRIAL BRIEF
[ see first page and extracted highlights below  ] ItemID: 102274
38 pages
PDF
10 2000-12-04 DEFENDANTS PRETRIAL BRIEF
[ see first page and extracted highlights below  ] ItemID: 102275
44 pages
PDF
11 2000-12-04 ANSWER
[ see first page and extracted highlights below  ] ItemID: 100792
13 pages
PDF
12 2000-11-29 MEMORANDUM OPINION
[ see first page and extracted highlights below  ] ItemID: 100158
13 pages
PDF
13 2000-10-31 PLAINTIFFS ANSWERING BRIEF IN OPPOSITION TO DEFENDANTS MOTION TO DISMISS
[ see first page and extracted highlights below  ] ItemID: 102276
17 pages
PDF
14 2000-10-24 OPENING BRIEF IN SUPPORT OF DEFENDANTS MOTION TO DISMISS
[ see first page and extracted highlights below  ] ItemID: 102277
16 pages
PDF
15 2000-10-13 COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 100793
26 pages
PDF
Total Documents: 15 documents , 368 pages
Price: $ 89.95


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1 . REPLY MEMORANDUM IN SUPPORT OF PLAINTIFFS MOTION TO DISMISS OR STAY

EXTRACTED KEY WORDS
DEFENDANTS
PREJUDICE
COURT
CHANCERY
MOTION
DISMISS
OPENING MEMORANDUM
FACTS
RELIEF
BANKRUPTCY
GREEN ISLE
LEGAL STANDARD
DELAWARE
GRANT
BOOKS
REORGANIZATION
ADVERSARY PROCEEDING
AGREEMENT
PLAIN LEGAL PREJUDICE
POST-TRIAL BRIEFING
LIMITED PARTNERSHIP
LIMITED LIABILITY COMPANY
DEFENDANTS CONCEDE
STAYED PENDING
OPERATING
DEFENDANTS ARGUE
CONFIRMATION
LEXIS
DISCOVERY
                                                                                                   
                                                                                                   
                IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

                                     IN AND FOR NEW CASTLE COUNTY

GREEN ISLE PARTNERS, LTD., SE.,
a Florida limited partnership,

                           Plaintiff,

         V.                                                     i        C. A. No. 18416

THE RITZ-CARLTON HOTEL COMPANY,                                 1
L.L.C., a Delaware limited liability company,
and THE RITZ-CARLTON HOTEL                                      ;
COMPANY OF PUERTO RICO, INC.
a Delaware corporation,                                         1>
                         Defendants.                            )

                    REPLY MEMORANDUM IN SUPPORT OF PLAINTIFF'S
                 MOTION TO DISMISS WITHOUT PREJUDICE OR TO STAY

                                               INTRODUCTON

                  1.       In Plaintiffs opening memorandum' on its Motion to Dismiss Without

Prejudice or to Stay, Plaintiff explained why this action should be dismissed without prejudice

under the unique facts of this case, and it set forth the legal standard that Defendants must meet

in order to convince this Court not to grant the relief Plaintiffhas requested. In their answering

brief,2 Defendants fail to demonstrate that they satisfy the relevant legal standard given the facts

of this case. Instead, Defendants mischaracterize the facts of this case and then apply those facts

to a legal standard of their own creation.


                  2.       As Defendants concede in their answering brief, Plaintiff prosecuted this

expedited action vigorously between the date of filing, October 13,2000,  and the date of trial,


' Cites to Plaintiffs Motion to Dismiss Without Prejudice or to Stay  appear,as "Pk. Open. Br. at
2 Cites to Defendants' Answering Brief in Opposition to Plaintiffs Motion to Dismiss Without
appear as "Defs. Ans. Br. at _.I'

SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • GREEN ISLE PARTNERS, LTD., SE.,
  • L.L.C., a Delaware limited liability company,
  • MOTION TO DISMISS WITHOUT PREJUDICE OR TO STAY
  • In Plaintiffs opening memorandum' on its Motion to Dismiss Without
  • Plaintiff explained why this action should be dismissed without prejudice
  • in order to convince this Court not to grant the relief Plaintiffhas requested.
  • brief,2 Defendants fail to demonstrate that they satisfy the relevant legal standard given
  • As Defendants concede in their answering brief,
  • December 13,2000, as well as through one and a half rounds of post-trial briefing.
  • voluntary petition for relief under chapter I 1 of the Bankruptcy Code.
  • tiling for bankruptcy, receipt of these books and records became even more critical, because
  • are critical to Green Isle's reorganization efforts.
  • Accounting and to Perform the Operating Agreement in Non-Discriminatory Manner 7 12.
  • the adversary proceeding was nearly identical to that sought in the Chancery Action.
  • `secure substantial justice to both parties."' In re Marriott Hotel Properties II Limited
  • LEXIS 128, at "16, Lamb, V.C.
  • lawsuit at a later time does not constitute "plain legal prejudice" sufficient to warrant the
  • Defendants argue that Plaintiffs motion to
  • achieve its most important business objective -- the confirmation of a plan of reorganization.
  • Undoubtedly, Plaintiff will seek discovery of Defendants in connection with that adversary
  • IT SHOULD BE STAYED PENDING RESOLUTION OF THE BANKRUPTCY CASE.

  • 2 . DEFENDANTS ANSWERING BRIEF IN OPPOSITION TO PLAINTIFFS MOTION TO DIMISS WITHOUT PREJUDICE OR TO STAY

    EXTRACTED KEY WORDS
    COURT
    MOTION
    GREEN ISLE
    DEFENDANTS
    RITZ-CARLTON
    COUNSEL
    DISMISS
    HOTEL
    DELAWARE
    POST-TRIAL BRIEFS
    CHANCERY
    PLAINTIFF
    DEL
    PARTIES
    BANKRUPTCY COURT
    ADVERSARY COMPLAINT
    ATTORNEYS
    RESOURCES
    ALTERNATIVE REQUEST
    RITZ-CARLTON HOTEL COMPANY
    AUTHORITIES
    EXPERT WITNESSES
    DILIGENCE
    DERIVATIVE LITIGATION
    PRE-TRIAL BRIEFS
    PRELIMINARY INJUNCTION
    PREPARATION
    PREPARING
    SIGNIFICANT RESOURCES
    
         IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                          IN AND FOR NEW CASTLE COUNTY
    
    GREEN ISLE PARTNERS, LTD., S.E.,          )
                                              1
                       Plaintiff,             11
                V.                                     C.A. No. 18416
    
    THE RITZ-CARLTON HOTEL COMPANY,  )
    L.L.C. and THE RITZ-CARLTON HOTEL         )
    COMPANY OF PUERTO RICO, INC.,
                                              i
                       Defendants.            )
    
    
    
    
    
              DEFENDANTS' ANSWERING BRIEF IN OPPOSITION TO
     PLANTIFF'S MOTION TO DISMISS WITHOUT PREJUDICE OR TO STAY
    
    
    
    
    
    OF COUNSEL:
    Joseph G. Petrosinelli                          Jesse A. Finkelstein
    Kenneth C. Smurzynski                           Daniel A. Dreisbach
    Oliver Garcia                                   Richards, Layton & Finger
    Gabriel A. Feldman                              One Rodney Square
    WILLIAMS  & CONNOLLY LLP                        P.O. Box  551
    725 12th Street, N.W.                           Wilmington, DE 19899
    Washington, D.C. 20005                          (302) 658-6541
    (202) 434-5000
    
                                Attorneys for Defendants
    
    
    
                                                                                         TABLE OF
    
    Table of Authorities..
    Nature and Stage of Proceedings..
    Summary of Argument..
    Statement of Facts..
                       I.                The Chancery Court Action . . . . . . . . . . . . . . . . . .
    . . . . . . . . . 5
                       II.               The Bankruptcy Proceeding. . . . . . . . . . . . . . . . . . .
    . . . . . . . . . . . . . . . . .._..... 7
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • THE RITZ-CARLTON HOTEL COMPANY,)
  • DEFENDANTS' ANSWERING BRIEF IN OPPOSITION TO PLANTIFF'S MOTION TO DISMISS WITHOUT PREJUDICE
  • OF COUNSEL:
  • Attorneys for Defendants
  • Table of Authorities..
  • Lack of Diligence.
  • Green Isle's Alternative Request for a Stay Should be
  • Del.
  • In re Marriott Hotel Properties,

  • 3 . DEFENDANTS SECOND POST-TRIAL BRIEF

    EXTRACTED KEY WORDS
    HOTEL
    RITZ-CARLTON
    COURT
    BOOKS
    OPERATING AGREEMENT
    PARTIES
    CONTRACT
    AFFILIATES
    PLAINTIFFS
    APP
    ATTORNEYS
    AGENT
    LAW
    PRINCIPAL-AGENT
    CONFIDENTIALITY
    DEFENDANTS
    HOTEL COMPANY
    PROVISIONS
    GEORGIA LAW
    OLIVER GARCIA
    PROPRIETARY INFORMATION
    INSPECTION
    OBLIGATIONS
    EXPRESSLY SET
    FIRST HAWAIIAN BANK
    ACCOUNTING
    MARRIOTT DISTRIBUTION
    PUERTO RICO
    CONNOLLY LLP
    
            IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                              IN AND FOR NEW CASTLE COUNTY
    
    
    
    GREEN ISLE PARTNERS, LTD., S.E.,
    
                         Plaintiff,
    
                 V.                                   C.A. No. 18416
                                               >
    THE RITZ-CARLTON HOTEL COMPANY,  )
    L.L.C. and  T H E  RITZ-CARLTON HOTEL      )
    COMPANY OF  PUERTO RICO., INC.,
                                               i
                         Defendants.           >
    
    
    
                       DEFENDANTS'  SECOND  POST-TRIAL  BRIEF
    
    
    
    
    OF COUNSEL:                          Jesse A. Finkelstein
    Joseph G. Petrosinelli               Daniel A. Dreisbach
    Kenneth C. Smurzynski                RICHARDS, LAYTON & FINGER, P.A.
    Oliver Garcia                        One Rodney Square
    Gabriel A. Feldman                   P.O. Box 551
    WILLIAMS  & CONNOLLY LLP             Wilmington, DE  1989!3
    725 12th Street, N.W.                (302) 65'8-6541
    Washington,  D.C. 20005
    (202) 434-5000
                                         Attorneys for  Defendats
    
    
    Dated: June 15, 2001
    
    
    
                                                                         TABLE: OF CONTENTS
    
    TABLE OF AlJTHORITIES  . . . . . . ,....... . . . . . . . . . . . . . . . . . . . . . . . . . . . .
    . . . . . . . . . . . . . . . . . . . . . . . ii
    
    INTRODUCTIION  . . . . . . . . . . . . . . . . . . . . . . ,....... . . . . . . . . . ..~ . . . . .
     . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
    
    STATEMENT OF FACTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • > THE RITZ-CARLTON HOTEL COMPANY,) L.L.C. and T H E RITZ-CARLTON HOTEL) COMPANY OF PUERTO
  • DEFENDANTS' SECOND POST-TRIAL BRIEF
  • RICHARDS, LAYTON & FINGER, P.A. Oliver Garcia
  • P.O. Box 551 WILLIAMS & CONNOLLY LLP Wilmington, DE 1989!3 725 12th Street, N.W.
  • Attorneys for Defendats
  • LIMITED BY THE PARTIES' OPERATING AGFCEEMENT.
  • UNDER THE OPERATING AGREEMENT, GREEN ISLE HAS NO
  • RIGHT TO INSPECT THE BOOKS AND RECO:RDSl OF RITZ-CrlRLTON AFFILIATES.
  • The Plain Language of the Contract.
  • A LIMITED CONFIDENTIALITY ORDER IS APPROPRIATE.
  • App.

  • 4 . PLAINTIFFS OPENING POST-TRIAL BRIEF

    EXTRACTED KEY WORDS
    RITZ-CARLTON
    HOTEL OPERATING AGREEMENT
    BOOKS
    COURT
    AFFILIATES
    TRANSACTIONS
    AGENT
    DEFENDANT
    ACCOUNTING
    COUNSEL
    AGENCY
    PRINCIPAL-AGENT
    DUTY
    ACCOUNT
    DEBT SERVICE
    OBLIGATIONS
    IRREGULARITIES
    PLAINTIFFS
    MANAGEMENT
    PROPOSED ORDER
    FINANCIAL CONTROL OFFICERS
    DISCLOSURE
    CONFIDENTIALITY
    GEORGIA LAW
    RESTATEMENT
    COMMON LAW
    MARRIOTT DISTRIBUTION SERVICES
    PROVISIONS
    CASH FLOW
    
                   IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                  IN AND FOR NEW CASTLE COUNTY
    
    
    GREEN ISLE PARTNERS, LTD., S.E.,
    a Florida limited partnership,
    
                               Plaintiff,                                                       7.
                                                                                                ,i:    
                                                                                        c-'          
                    V.                                               C. A.No. 18416  ;                 
                                                                                        :              
    THE RITZ-CARLTON HOTEL COMPANY,                                                                    
                                                                                                       
                                                                                         _
    L.L.C., a Delaware limited liability company,
    and THE RITZ-CARLTON HOTEL
    COMPANY OF PIJERTO RICO, INC.
    a Delaware corporation,
    
                                 Defendants.
    
    
    
                           PLAINTIFF'S OPENING POST-TRIAL  BRIEF
    
    
                                                YOUNG CONAWAY  STARGATT & TAYLOR, LLP
                                                Josy W. Ingersoll
                                                Martin S. Lessner
                                                1 lth Floor, Wilmington Trust Center
                                                1100 North Market Street
                                                P.O. Box 391
                                                Wilmington, Delaware 19899-0391
                                                (302) 571-6600
                                                Attorneys for Plaintiff
    
    OF COUNSEL:
    
    K.C. McDaniel
    Michael I. Verde
    ROSENMAN  & COLIN LLP
    575 Madison Avenue
    New York, New York 10022-2585
    Telephone (212) 94.0-8800
    Telecopy (212) 940-8776
    Dated: May  25,200l
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • OF COUNSEL:
  • Hotel Operating Agreement
  • Failure to Pay Debt Service
  • Admission of Irregularities by Financial Control Officers
  • Denials for Access to Books and Records and for Accounting
  • GREEN ISLE HAS AN ABSOLUTE RIGHT TO THE BOOKS AVD R E C O R D S O F T H E P R O J E C T
  • Its Duties as Agent and Cannot Dispute Green Isle's Ownership of Them .__.
  • RITZ-CARLTON HAS NOT SUSTAINED ITS BURDEN OF S H O W I N G A W A I V E R O F I T S F I D U C
  • Agency Obligation in Regard to Transactions Benefiting Affiliates .,
  • DISCLOSURE AGAINST RITZ-CARLTON .._....
  • Garcia v. UJricme Realty & Property Management Co. 205 Ga.
  • Restatement of Agency 5 15
  • Ritz-Carlton has a contractual duty to maintain books and records of the Project,
  • and, because it is Green Isle's agent, it has a fiduciary duty to affirmatively account for
  • Plaintiffs Trial Exhibits referenced herein are contained in a separately bound compendium of
  • confidentiality agreement, to show how Ritz-Carlton's more expansive fiduciary
  • 5.3 RCHC-LLC has since assigned and/or delegated its obligations under the Hotel Operating
  • the Project (the "Cash Flow") in fiscal year 2000 were substantially below the Cash Flow
  • Admission of Irre$rularities by Financial Control Officers
  • transact business w:ith any affiliate other than Marriott Distribution Services.
  • Casino it is an agent in common law.
  • Under Georgia law, an agent who permits the property of the
  • See Proposed Order, 77 K, 2.
  • does not override the express provisions of other sections of the Hotel Operating Agreement
  • To prove that the duty was not breached, the defendant agent bears the burden of

  • 5 . LETTER OPINION

    EXTRACTED KEY WORDS
    COURT
    DEFENDANTS
    BOOKS
    HOTEL
    COUNSEL
    INSPECTION
    OPERATING AGREEMENT
    GREEN ISLE
    PARTIES
    INGERSOLL
    MESSRS
    LESSNER
    FINKELSTEIN
    DREISBACH
    RITZ-CARLTON
    INSPECTED DOCUMENTS
    STORED FILES
    RITZ CARLTON
    MATTER
    UNCLEAR
    HOTEL COMPANY
    REQUESTING
    BRIEFS
    OPENING
    COMPLAINS
    REPRESENTATIONS
    DAMAGES
    MISMANAGEMENT
    FRAUD
    
                                                    C O U R T   0F   C H A N C E R Y
                                                                 O F   T H E
                                                     STATE OF DELAWARE
    
    
     J A C K   El.   J A C O B S                                                                       
     VICE-CHANCELLOR                                                                             
                                                           May 1,200l
    
    
    
    Josy W. Ingersoll, Esquire                                                  Jesse A. Finkelstein,
    Martin S. Lessner, Esquire                                                  Daniel A. Dreisbach,
    Young, Conaway,  Stargatt                                                   Richards, Layton  &
    & Taylor, LLP                                                               P.O. Box 551
    P.O. Box 391                                                                Wilmington, DE 19899
    Wilmington, DE 19899
    
                  Re: Green Isle Partners, Ltd., S.E. v. The Ritz  Carlton
                                    Hotel Company, L.L.C., et al., Civil Action No. 18416
                                    Date Submitted: April  24,200l
    
    Dear Counsel:
    
                  Pending is this Court's decision on the merits of this action to inspect books
    
    and records of the defendants. The plaintiff claims inspection rights under a Hotel
    
    Operating Agreement, governed by Georgia Law, among the parties. Regrettably,
    
    the state of the post-trial briefing leaves the Court unable to resolve this matter,
    
    because it is unclear precisely what issues the Court is supposed to decide.
    
                  To  elaborate, the merits-related issues were initially posed by the pretrial
    
    briefs--or so the Court thought. Those issues included (broadly speaking) (i)
    
    whether Green Isle was entitled under the Operating Agreement to inspect the
    
    books and records not only of the Ritz  Carlton  Hotel in  San Juan, Puerto  Rico, but
    
    
    
    Ms. Ingersoll, Messrs. Lessner,
    Finkelstein and Dreisbach
    May 1,200l
    Page 2
    
    
    SNIPPETS:
  • The Ritz Carlton
  • Pending is this Court's decision on the merits of this action to inspect books
  • and records of the defendants.
  • The plaintiff claims inspection rights under a Hotel
  • Operating Agreement, governed by Georgia Law, among the parties.
  • the state of the post-trial briefing leaves the Court unable to resolve this matter,
  • because it is unclear precisely what issues the Court is supposed to decide.
  • whether Green Isle was entitled under the Operating Agreement to inspect the
  • Ingersoll, Messrs.
  • Lessner,
  • Finkelstein and Dreisbach May 1,200l Page 2
  • requesting that the Court decide the matter "on the earliest possible date."
  • The difficulty is that the plaintiffs post-trial briefs do not even address the
  • The plaintiffs opening post-trial brief is essentially a
  • lamentation which complains that the defendants have withheld books and
  • trial witnesses had represented were contained in the stored files,
  • the inspected documents show that representations that Ritz-Carlton
  • York counsel, Ms.
  • Nor did counsel inform the Court that in March of this year, the plaintiff filed an action
  • The Ritz-G&ton Hotel Company, L.L.C., et al., U.S.D.C.

  • 6 . PLAINTIFFS REPLY POST TRIAL BRIEF

    EXTRACTED KEY WORDS
    DEFENDANTS
    RITZ-CARLTON
    BOOKS
    COURT
    PLAINTIFF
    DEL
    COUNSEL
    MCDANIEL
    ATTORNEYS
    HOTEL
    DISCLOSURE
    DELAWARE
    YORK
    COMMENCEMENT
    AFFILIATES
    TRANSACTIONS
    FLORIDA LIMITED PARTNERSHIP
    WILMINGTON
    MCDANIEL MICHAEL
    COLIN LLP
    AUTHORITIES
    FEDERAL COURT
    IRREGULARITIES
    GREEN ISLE PARTNERS
    NORTH MARKET STREET
    VERDE ROSENMAN
    MADISON AVENUE
    ANNEXED HERETO
    CONFIDENTIALITY
    
                                                                                       ORMNAL
                 IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE                                     
                                  IN AND FOR NEW CASTLE COUNTY                                         
                                                                                                       
    
    
    GREEN ISLE PARTNERS, LTD., S.E.,
    a Florida limited partnership,
    
                                Plaintiff,            ;
    
                   V.                                 ;             C. A. No. 18416
    
    THE RITZ-CARLTON HOTEL COMPANY, ;                                                              ,. 
    L.L.C., a Delaware limited liability company,                                      ._          -..
    and THE RITZ-CARLTON HOTEL                        ;                                .'
    COMPANY OF PUERTO RICO, INC.                                                                     .~
                                                      )                                              s.
    a Delaware corporation,                                                            .,i
                                                                                        `-1  `.        
                                                                                       _-.             
                                                                                        __-   ,        
                                                                                              .
                                Defendants.           >
    
    
    
                               PLAINTIFF'S REPLY POST TRIAL  BRIEF
    
    
                                               YOUNG CONAWAY  STARGATT & TAYLOR, LLP
                                               Josy W. Ingersoll
                                               Martin S. Lessner
                                               1 lth Floor, Wilmington Trust Center
                                               1100 North Market Street
                                               P.O. Box 391
                                               Wilmington, Delaware 19899-0391
                                               (302) 571-6698
                                               Attorneys for Plaintiff
    
    OF COUNSEL:
    
    K.C. McDaniel
    Michael I. Verde
    ROSENMAN  & COLIN LLP
    575 Madison Avenue
    New York, New York 10022-2585
    Telephone (212) 940-8800
    Telecopy (212) 940-8776
    
    SNIPPETS:
  • GREEN ISLE PARTNERS, LTD., S.E.,
  • 1100 North Market Street
  • Wilmington, Delaware 19899-0391
  • Attorneys for Plaintiff
  • OF COUNSEL:
  • K.C. McDaniel Michael I. Verde ROSENMAN & COLIN LLP 575 Madison Avenue New York, New York
  • TABLE OF AUTHORITIES
  • POINT 3 - DEFENDANTS HAVE NOT PRODUCED ALL OF THE RECORDS WHICH GREEN ISLE HAS THE RIGHT TO
  • Defendants Have Failed to Adequately Explain the Gaps and Irregularities in the
  • Carapico v. Philadelphia Stock Exchange, Inc., Del.

  • 7 . DEFENDANTS POST-TRIAL BRIEF

    EXTRACTED KEY WORDS
    PARTIES
    GREEN ISLE
    COURT
    HOTEL
    RITZ-CARLTON
    BOOKS
    AFFILIATES
    EVIDENCE
    CONTRACT
    PROVISIONS
    GEORGIA LAW
    RECORDS ACTION
    AGENT
    DEFENDANTS
    DEL
    AGENCY
    CONFIDENTIALITY
    ACCOUNTING
    ALLEGATIONS
    PRINCIPAL-AGENT
    RELEVANT EXTRINSIC EVIDENCE
    MARRIOTT DISTRIBUTION SERVICES
    INSPECTION RIGHTS
    TRANSACTIONS
    TESTIMONY
    FIRST HAWAIIAN BANK
    REPRESENTATIVES
    DISCOVERY
    DISTRIBUTION SERVICES
    
               IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                IN AND FOR NEW CASTLE COUNTY
    
    
    GREEN ISLE; PARTNERS, LTD., SE.,          )
                              Plaintiff,                                           $4  3
                                              i                                  acm
                                                                                 5 z                  
                                                                                                %
                                                                                 7, `... -- : -JJ      
                                                                                 . I!                  
                                                                                 . .,
                      V.                      ;       C.A. No. 18416             ,:-`_                 
                                                                                  -.            .IL  .s
                                                                                  C'  _                
    THE RITZ-CARLTON HOTEL                                                         _A.          -0  .:i
                                              i                                    y-7 I        3:     
    COMPANY, L.L.C. and THE                                                         _.,-. ,
                                              1                                           _+
                                                                                    =.: 1        5     
    RITZ-CARLTON HOTEL COMPANY OF  )                                                `0 C"
                                                                                     e..p',,  2
    PUERTO RICO, INC.,                                                               : ;s4
                                              5
                              Defendants.     )
    
    
    
                                DEFENDANTS' POST-TRIAL BRIEF
    
    
    
    OF COUNSEL:                                    Jesse A. Finkelstein
                                                   Daniel A. Dreisbach
    Joseph G. Petrosinelli                         Richards, Layton &. Finger
    Kenneth C. Smurzynski                          One Rodney Square
    Oliver Garcia                                  P.O. Box 551
    Gabriel A. Feldman                             Wilmington, Delaware 19899
    Williams  & Connolly LLP                       (302) 658-6541
    725 12th Street, N.W.                            Attorneys for Defendants
    Washington, D.C. 20005
    (202) 434-5000
    
    
    Dated: April 4, 2001
    
    
    
    
    SNIPPETS:
  • DEFENDANTS' POST-TRIAL BRIEF
  • AND IS DEFINED AND LIMITED BY THE PARTIES' OPERATING AGREEMENT.
  • UNDER THE OPERATING AGREEMENT, GRE:EN 1SL:E HAS NO RIGHT TO INSPECT THE BOOKS AND RECORDS OF
  • GREEN 1SL.E HAS NO RIGHT TO INSPECT THE BOOKS AND RECORDS OF RITZ-CARILTO-U AFFI.LIATES.
  • The Plain Language of the Contract.
  • The Relevant Extrinsic Evidence.
  • The New Lawsuit Against Ritz-Carlton and Its AfIiliates.
  • THE COURT SHOULD REJECT GREEN ISLE'S REQUEST FOR ATTORNEYS' FEES.
  • Hintmanrl v. tfi,ed Weber, Inc., Del.
  • Defendants The Ritz-Carlton Hotel Company,
  • The trial of this books and records action was held on December 1.3,2000.
  • The only areas of dispute were whether Green Isle was entitled
  • Isle conceded that it was not seeking any affirmative or equitable accounting in this action.
  • action obviously was to obtain discovery for the new lawsuit.
  • which repeats the allegations of "irregularities" in Ritz-Carlton's
  • transactions with Marriott affiliates, renders Green Isle's position in this case untenable.
  • although Green Isle initially argued that no confidentiality provision was
  • Owner and Operator shall be that of principal and agent; provided, however, that Olwner and
  • several provisions in the contract that speak to Ritz-Carlton's obligation to provide certain
  • Section 13.15 est.ablishes that the part es have an agency
  • Under Georgia law,?
  • their principal-agent relationship, but it claims that the parties can do so only if the
  • First Hawaiian Bank, 30 F. Supp.
  • 13.8, entitled "Inspection Rights," the parties agreed on the scope of Green Isle's right to
  • The books of account and al I other records relating to or reflecting the operation of the
  • affiliate records, then Green Isle would OWE records of Marriott Distribution Services, Inc.
  • in the deposition testimony of its forrner on-site representative at the Hotel,
  • at 19, any books and records regarding Hotel purchases from Marriott Distribution Services,

  • 8 . PLAINTIFFS POST-TRIAL BRIEF

    EXTRACTED KEY WORDS
    RITZ-CARLTON
    MCDANIEL
    STORED FILES
    RITZ-CARLTON HOTEL COMPANY
    DEFENDANTS
    EXHIBIT
    PROPOSED ORDER
    MARRIOTT
    COURT
    REPRESENTATIVES
    AFFILIATES
    COUNSEL
    MCDANIEL AFF
    CHARGES
    DELAWARE
    INSPECTION
    COLIN LLP
    WILMINGTON TRUST
    ACCOUNTING
    AFFIRMATIVE DISCLOSURE
    REIMBURSEMENT
    RECEIVABLES
    TRANSACTIONS
    FLORIDA LIMITED PARTNERSHIP
    ACCOUNTING PRACTICES
    ALLOCATION
    PURCHASING
    DISTRIBUTION SERVICES
    MADISON AVENUE
    
                 IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                                 IN AND FOR NEW CASTLE COUNTY                          67
    
    
    GREEN ISLE PARTNERS, LTD., S.E.,
    a Florida limited partnership,
                                                      1
                                Plaintiff,
    
                   V.                                 I
                                                      >
    THE RITZ-CARLTON HOTEL COMPANY, )
    L.L.C., a Delaware limited liability company,     )
    and THE RITZ-CARLTON HOTEL
    COMPANY OF PUERTO RICO, INC.,                     i
    a Delaware corporation,
                                                      ;
                                Defendants.           >
    
                                   PLAINTIFF'S POST-TRIAL BRIEF
    
    
                                               YOUNG CONAWAY  STARGATT & TAYLOR, LLP
                                               Josy W. Ingersoll
                                               Martin S. Lessner
                                               1 Ith Floor, Wilmington Trust Center
                                               1100 North Market Street
                                               P.O. Box 391
                                               Wilmington, Delaware 19899-0391
                                               (302) 571-6698
                                               Attorneys for Plaintiff
    
    OF COUNSEL:
    K.C. McDaniel
    Michael I. Verde
    ROSENMAN  & COLIN LLP
    515 Madison Avenue
    New York, New York 10022-2585
    Telephone (212) 940-8800
    Telecopy (2 12) 940-8776
    
    Dated: March 7, 2001
    
    
    
                                                                                                      
    
    
    BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . ..a.. . . . . . . . . . . . . . . . . .
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • GREEN ISLE PARTNERS, LTD., S.E., a Florida limited partnership,
  • > THE RITZ-CARLTON HOTEL COMPANY,) L.L.C., a Delaware limited liability company,) and THE
  • Ith Floor, Wilmington Trust Center
  • OF COUNSEL: K.C. McDaniel Michael I. Verde ROSENMAN & COLIN LLP 515 Madison Avenue New York,
  • The Stored Files Were Not Collected, Organized or Indexed in a Centralized
  • Plaintiff Green Isle Partners, Ltd. respectfully submits this Post-Trial
  • For the reasons set forth below and in the Affidavit of K.C. McDaniel filed herewith,
  • Green Isle and Ritz-Carlton with regard to disclosure and inspection both under the Hotel
  • At the trial of this matter, witnesses for defendants The Ritz-Carlton Hotel Company LLC, and
  • services from Ritz-Carlton affiliates, could be obtained from the documents in those Stored
  • A copy of Green Isle's proposed Order with annotation, submitted prior to trial, is attached
  • Between January 2 and January 5,2001, Green Isle representatives conducted an inspection of
  • Ritz-Carlton's continued refusal to acknowledge its full disclosure and accounting
  • information on bad debts and uncollected receivables.
  • McDaniel Aff.
  • The duty of affirmative disclosure is addressed throughout the proposed Order.)
  • information in regard to affiliate transactions and management reimbursements.
  • irregularities or action to terminate responsible employees, active purchasing files
  • documents concerning purchases by the Project from Ritz-Carlton's affiliate, Marriott
  • Project purchased from Marriott Distribution Services, "down to the last Dixie cup."
  • Ritz or Marriott employee not working at the Project, the employee's reimbursement
  • There was no evidence of review or verification of the validity of the charges by
  • No other compensation for such costs or system of allocation was

  • 9 . PLAINTIFFS REPLY PRETRIAL BRIEF

    EXTRACTED KEY WORDS
    RITZ-CARLTON
    COURT
    HOTEL OPERATING AGREEMENT
    AGENCY
    AGENT
    PARTNER
    PRINCIPALS
    DUTIES
    AFFILIATES
    COUNSEL
    GEORGIA LAW
    BOOKS
    PARTNERSHIP
    OBLIGATIONS
    TRANSACTIONS
    DEFENDANTS
    LLP
    RESTATEMENT
    CONFIDENTIALITY
    DELAWARE CORPORATION
    DISCLOSURE
    PROPOSED ORDER
    ENCYCLOPEDIA
    COMPETITION
    AGENCY RELATIONSHIP
    CORE FIDUCIARY DUTIES
    PROVISION
    AUTHORITY
    FILING
    
                 IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                                 IN AND FOR NEW CASTLE COUNTY
    
    
    GREEN ISLE PARTNERS, LTD.,  SE.,
    a Florida limited partnership,
    
                                      Plaintiflt
    
                      V.                                        i           C. A. No. 18416
    
    THE RITZ-CARLTON HOTEL CO.., L.L.C.                         t
    a Delaware limited liability company., and                  i
    THE RITZ-CARLTON HOTEL COMPANY                              )
    OF PUERTO RICO, INC.,                                       >                              .  .
    a Delaware corporation,
                                                                i
                                      Defendants.               1
    
    
                               PLAINTIFF'S REPLY PRETRIAL BRIEF
    
    
                                               YOUNG CONAWAY  STARGATT & TAYLOR, LLP
                                               Josy W. Ingersoll
                                               Martin S. Lessner
                                               11 th Floor, Wilmington Trust Center
                                               1100 North Market Street
                                               P.O. Box 3Y 1
                                               Wilmington, Delaware 19899-0391
                                               (302) 571-6698
                                               Attorneys for Plaintiff
    
    OF COUNSEL:
    K.C. McDaniel
    Michael I. Verde
    ROSENMAN  & COLIN LLP
    575 Madison Avenue
    New York, NY 10022-2585
    Telephone (212) 940-8800
    Telecopy (212) 940-8776
    
    Dated: December  11,200O
    
    
    
    
    WP3: 576542 .I                                                                             57571 
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • a Florida limited partnership,
  • OF COUNSEL:
  • ROSENMAN & COLIN LLP
  • FURTHER PROCEDURAL HISTORY SINCE FILING OF PLAINTIFF'S PRETRIAL BRIEF
  • RITZ-CARLTON HAS CONCEDED THAT THE HOTEL OPERATING AGREEMENT REQUIRES IT TO P-ROVIDE ACCESS
  • The Hotel Operating Agreement Does Not Require Green Isle
  • To Execute a Confidentiality Agreement Before Accessing Its
  • RITZ-CARLTON'S COMMON LAW OBLIGATIONS AS AN AGENT ARE IN ADDITION TO, AND NOT ELIMINATED BY,
  • An Agency Agreement Cannot Eliminate the Agent's Core Fiduciary Duties.....
  • The Parties Did Not Waive Ritz-Carlton's Core Fiduciary Duties in
  • Georgia Law Allows {Only Limited Waivers of an Agent's Duty.
  • RITZ-CARLTON'S FIDUCIARY OBLIGATIONS REQUIRE IT TO MAKE COMPLETE DISCL,OSURE OF THE HOTEL,`S
  • The Limited Scope of Authority Granted to Ritz-Carlton to Purchase

  • 10 . DEFENDANTS PRETRIAL BRIEF

    EXTRACTED KEY WORDS
    HOTEL
    RITZ-CARLTON
    OPERATING AGREEMENT
    CONTRACT
    PARTIES
    AFFILIATES
    COURT
    PRINCIPALS
    GREEN ISLE
    OBLIGATIONS
    INSPECTION
    PLAINTIFF
    PROVISIONS
    AGENT
    ACCOUNTING
    DEFENDANTS
    PROPRIETARY INFORMATION
    EXPRESSLY SET
    GEORGIA LAW
    CONFIDENTIALITY
    TRANSACTIONS
    FIRST HAWAIIAN BANK
    ALLEGATIONS
    COMPLAINT
    REASONABLE TIMES
    REPRESENTATIVES
    RECORDS PERTAINING
    COMPETITION
    COMMON LAW
    
                      IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                                    IN ANID FOR NEW CASTLE COUNTY
    
    
    GREEN  IS'LE PARTNERS, LTD., SE.,
    
                              Plaintiff,
                                                     ;
                       V.                                      C.A. No. 18416
                                                     1
    
    THE RITZ-CARLTON HOTEL COMPANY,                  i
    L.L.C. and THE RITZ-CARLTON HOTEL
    COMPANY OF PUERTO RICO, INC.,                    ;
    
                              Defendants.
    
    
                                     DEFENDANTS' PRETRIAL BRIEF
    
    
    
    OF COUNSEL:
                                                     Jesse A. Finkelstein
    Joseph G. Petrosinelli                           Daniel A. Dreisbach
    Kenneth C. Smurzynski                            Richards, Layton & Finger, P.A.
    Williams 8: Connolly LLP                         One Rodney Square
    725 12th Street, N.W.                            P.O. Box 55 1
    Washingto.n,  D.C. 20005                         Wilmington, Delaware 19899
    (202)434-5000                                    (302)658-6541
                                                          Attorneys for Defendants
    
    
    
    
    Dated: December 4, 2000
    
    
    
    
    
    
    
    
    
    RLFI-2238555-I
    
    
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • Plaintiff,
  • L.L.C. and THE RITZ-CARLTON HOTEL
  • Defendants.
  • The Operator's Right To Transact with Affiliates
  • Green Isle's Access to and Inspection of the Books and Records of the
  • Green Isle's Recent Dernand for an Accounting and for Inspection of
  • The Books and Records of the Hotel
  • and Is Defined and Limited by the Parties' Operating
  • The Provisions of the Operating Agreement Set
  • Forth Ritz-Carlton's Obligations
  • Set Forth in Its Contract with Its Principal
  • Ritz-Carlton Is Obligated To Provide
  • Proprietary Information
  • First Hawaiian Bank,

  • 11 . ANSWER

    EXTRACTED KEY WORDS
    PARAGRAPH
    RITZ-CARLTON
    DEFENDANTS ADMIT
    DEFENDANTS DENY
    GREEN ISLE
    SPEAK
    OPERATING
    AGREEMENT
    COMPLAINT
    RESPONSE
    RITZ-CARLTON PUERTO
    RICO
    HOTEL
    OBLIGATIONS
    PARTIES
    PROVISIONS
    EXHIBIT
    HOTEL COMPANY
    BASIS
    SUFFICIENT KNOWLEDGE
    ATTORNEY
    PARTNERS
    SAN JUAN
    ENTITLAD
    COURT
    CASINO
    TDF
    JAY
    MCDANIEL
    
                  IN THE COURT OF CHANC.ERY  OF THE STATE OF DELAWARE
    
                                 IN AND FOR N:EW CASTLE COUNTY
    
                                                                                    ?
    GREEN ISLE PARTNERS, LTD., SE.,
    
                           Plaintiff,
                                                          i
                   V.                                     )   CA.  N o .  18416
    
    THE  KITZ-CARLTON  HOTEL COMPANY, 1
    L.L.C. and THE RITZ-CARLTON HOTEL,                    )
    COMPANY OF PUERTO RICO, INC.,
                                                          1
                           Defendants.                    )
    
                                                h.NSWER
    
           Defendants The Ritz-Carlton Hotel Company, L.L.C. and  Thl,: Ritz-Carlton Hotel (Company
    
    of Puerto Rico, Inc. (collectively, "Defendan-is"), through their counsel Richards, Layton & Finger
    
    and Williams & Connolly LLP, answer plaintiff's Complaint as folll3ws:
    
                                            FnRs'I DEFENSE
    
            1.     Defendants admit that Green Isle is a Florida limited partnership. Defendants are
    
    withcut sufficient knowledge or information to admit or deny the remaining allegations contained
    
    in paragraph 1, and on that basis they are denied.
    
           2.      Defendants admit that Green Isle owns the physical structure and improvernents that
    
    constitute the Ritz-Carlton, San Juan Hotel, Spa  & Casino. Defendants are without sufficient
    
    kno\+ledge  or information to admit or deny the remaining allegation:; contained in paragraph 2, and
    
    on thst basis they are denied.
    
           3.      Admitted.
    
           4.      Admitted, except that Defendants deny that the principal place of business of The
    
    RitzXarlton Hotel Company of Puerto Rico, Inc. is San Juan, Puerto Rico.
    
    
    
    
    SNIPPETS:
  • COMPANY OF PUERTO RICO, INC.,
  • Defendants The Ritz-Carlton Hotel Company, L.L.C. and Thl,:
  • Defendants admit that Green Isle is a Florida limited partnership.
  • withcut sufficient knowledge or information to admit or deny the remaining allegations
  • in paragraph 1, and on that basis they are denied.
  • except that Defendants deny that the principal place of business of The
  • RitzXarlton Hotel Company of Puerto Rico, Inc. is San Juan, Puerto Rico.
  • Defendants admit that Ritz-Carlton L. L.C. and Green Isle are parties to an Operating
  • Agreement dated December 15, 1995, the provisions of which speak for themselves.
  • further adrnit that Ritz-Carlton L.L.C. assigned its obligations under the Operating
  • Ritz-Carlton Puerto Rico.
  • constitute the Ritz-Carlton, San Juan Hotel, Spa & Casino, and that the general partner of
  • Defendants admit that Ritz-Carlton L.L.C. and Green Isle are parties to an Operating
  • The first sentence ofparagraph 17 contains a legal conclusion as to which no response
  • Defendants admit TDF has declared Green Isle in defmlt of Green Isle's obligations
  • and admit that Exhibits 2 and 3 to the Complaint appear to be documents
  • Defendants admit that Exhibit 4 to the Complaint is a document entitled "Hotel
  • Profcrma" and Exhibit 5 is a letter with an attachmeni from M. Jay Yllrow, an attorney for
  • Subordinated Loan to Green Isle Partners, Lt'd., SE., The Ritz Carlton San Juan Hotel and
  • McDaniel, an attorney for Green Isle, which speaks for itself.
  • entitlad "The Ritz-Carlton San Juan, Hotel, Spa & Casino, Owner's Meeting, Response to
  • The Court lacks jurisdiction over the subject matter of this action.

  • 12 . MEMORANDUM OPINION

    EXTRACTED KEY WORDS
    OPERATING AGREEMENT
    GREEN ISLE
    FORUM SELECTION
    SELECTION CLAUSE
    RITZ-CARLTON
    ATTOMMENT AGREEMENT
    TDF
    HOTEL
    ATTORNMENT
    LAWSUIT
    PUERTO RICO
    RIGHTS
    OWNER
    PROVISION
    OBLIGATIONS
    COURTS
    MOTION
    BOOKS
    GOVERN
    REASONS
    DISPUTE
    HOTEL PROJECT
    GUARANTOR
    PURPOSE
    CONSENT
    DELAWARE
    DISMISS
    ACCOUNTING
    CONTRACT
    
          IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                         IN AND FOR NEW CASTLE COUNTY
    
    GREEN ISLE PARTNERS, LTD., S.E., a                 1
    Florida limited partnership,                       11
                       Plaintiff,                      1       .
                                                       1
          V.                                           1     Civil Action No. 184 16
                                                       1
    THE RITZ-CARLTON HOTEL COMPANY                     1
    L.L.C., a Delaware limited liability company,      1
    and THE RITZ-CARLTON HOTEL                         >
    COMPANY OF PUERTO RICO, INC., a                    >
    Delaware corporation,                              1>
                       Defendants.                     >
    
                                 MEMORANDUM OPINION
    
                             Date Submitted:     November 3,200O
                             Date Decided:      November 29,200O
    
    
    Josy W. Ingersoll and Martin S. Lessner, Esquires, of YOUNG, CONAWAY,
    STARGATT & TAYLOR, Wilmington, Delaware; and K.C. McDaniel, Michael I.
    Verde and Philip A. Nemecek  Esquires, of ROSENMAN & COLIN, LLP, New York,
    New York, Attorneys for Plaintiff.
    
    Jesse A. Finkelstein and Daniel A. Driesbach, Esquires, of RICHARDS, LAYTON &
    FINGER P.A., Wilmington, Delaware; and Joseph G. Petrosinelli and Kenneth C.
    Smurzynski, Esquires, of WILLIAMS & CONNOLLY, LLP, Washington, DC.,
    Attorneys for Defendants.
    
    
    
    JACOBS, VICE CHANCELLOR
    
    
    
           Pending is a motion to- dismiss this action, brought by Green Isle Partners,
    
    LTD., S.E. ("Green Isle"), to compel an accounting and the inspection of certain .
    
    books and records of the defendants, The Ritz-Carlton Hotel Co., L.L.C. ("RCHC-
    
    LLC") and The Ritz-Carlton Hotel company of Puerto Rico, Inc. ("RCHC-PR")
    
    (collectively, "Ritz-Carlton "). Ritz-Carlton has moved to dismiss this action on
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • Pending is a motion to- dismiss this action, brought by Green Isle Partners,
  • LTD., S.E., to compel an accounting and the inspection of certain.
  • books and records of the defendants, The Ritz-Carlton Hotel Co., L.L.C. and The Ritz-Carlton
  • the ground that the forum selection clause contained in an agreement that is
  • separate and distinct from the contract upon which this lawsuit is based,
  • that this action be litigated in the courts of Puerto Rico.
  • that the forum selection clause does not govern this
  • Green Isle is the lessee and owner of certain property and assets located
  • under a Hotel Operating Agreement that
  • other agreements entered into in connection with the Hotel Project,
  • The guarantor of the Hotel Project was the Puerto Rico Tourism: Development Fund under a
  • Green Isle agreed, mter alia, to reimburse TDF for any payments that TDF made
  • The Attomment Agreement sets forth,
  • the respective rights and obligations of TDF and Ritz-Carlton
  • Concerned about the reasons for the Hotel Project's inadequate cash flow,
  • Green Isle demanded to inspect certain books and records of Ritz-Carlton under
  • Attornment Agreement that contains the forum selection clause,
  • purpose of the relief that Green Isle seeks is to evaluate its options and to defend
  • %tz-Carlton points out that $6.1 of the Attornrnent Agreement prohibits Green Isle from
  • `The argument is that because Ritz-Carlron had filed a lawsuit asserting claims against Green
  • action falls within that forum selection provision.
  • clause, and if not, does the forum selection clause, by its terms, govern this

  • 13 . PLAINTIFFS ANSWERING BRIEF IN OPPOSITION TO DEFENDANTS MOTION TO DISMISS

    EXTRACTED KEY WORDS
    NONDISTURBANCE AGREEMENT
    DEFENDANTS
    PUERTO RICO
    DEL
    PLAINTIFF
    HOTEL OPERATING AGREEMENT
    MOTION
    COURTS
    PARTIES
    FORUM SELECTION CLAUSE
    ROSS AFF
    SUPER
    EISENMANN
    GREEN ISLE
    YORK
    CONTRACTS
    INTENTION
    LEXIS
    GUARANTEE FUND
    FLORIDA LIMITED PARTNERSHIP
    DELAWARE LIMITED LIABILITY
    ATTORNMENT AGREEMENT
    SEPARATE AGREEMENT
    OBLIGATIONS
    RCHC-LLC
    MANAGEMENT AGREEMENT
    COLIN LLP
    WOODBRIDGE BOARD
    HEALTHCARE SEWS
    
                 IN THE COURT IOF CHANCERY OF THE STATE OF DELA                              GINAI"
                                  IN AND FOR NEW CASTLE COUNTY
    
    GREEN ISLE PARTNERS, LTD.,  SE.,
    a Florida limited partnership,
    
                                      Plaintiff,                  i
    
                        V.                                        i       C. A. No. 18416
    
    THE RITZ-CARLTON HOTIEL  CO., L.L.C.                          i
    a Delaware limited liability company, and
    THE RITZ,-CARLTON  HOTEL COMPANY                              i
    OF PUERTO RICO, INC.,
    a Delaware corporation,                                       1
    
                                      Defendants.
    
    
                      PLAINTIFF'S ANSWERING BRLEF IN OPPOSITION TO
                   DEFENDANTS' MOTION TO DISMISS ON THE GROUNDS
                        THAT THE (CLAIMS ASSERTED IN THE COMPLAIN'T
                   MUST BE Lm[GATED  IN THE COURTS OF PUERTO RKO
    
    
                                               YOUNG CONAWAY STARGATT & TAYLOR, LLP
                                               Josy W. Ingersoll
                                               Martin S. Lessner
                                                    1 lth Floor, Wilmington Trust Center
                                                    1100 North Market Street
                                               P.O. Box 391
                                               Wilmington, Delaware 19899-0391
                                               (302) 571-6672
                                               Attorneys for Plaintiff
    OF COUNSEL:
    
    K. C. McDaniel
    Michael 1. Verde
    Philip A. Nemecek
    ROSENMAN & COLIN LLP
    575 Madison Avenue
    New York, New York 10022-2.585
    Telephone ~(212)  940-8800
    
    Dated: October 3 1, 2000
    
                                                                                              
    
    
    
    SNIPPETS:
  • GREEN ISLE PARTNERS, LTD., SE.,
  • DEFENDANTS' MOTION TO DISMISS ON THE GROUNDS
  • MUST BE Lm[GATED IN THE COURTS OF PUERTO RKO
  • New York, New York 10022-2.585
  • The Nondisturbance Agreement Was an Intentionally
  • Durig v. Woodbridge Board oJ'Educ., Del.
  • Super., C.A.
  • LEXIS 523, Ridgely, 5.
  • Eisenmann Corp. v. GeneralMotors Corp.,
  • Healthcare Sews.
  • opposition to the motion, made by Defendants The Ritz-Carlton Hotel Co., L.L.C. and The
  • Plaintiff commenced thds action to gain access to the books and records of the Ritz-Carlton,
  • Operating Agreement between Plaintiff and Defendants.
  • Nondisturbance and Attornment Agreement negotiated
  • between Defendant RCHC-LLC as operator and the Puerto Rico Tourism Development Fund
  • This action is based on the Hotel Operating Agreement, and the right it gives to Plaintiff
  • The Express Terms of the Two Agreements Prohibit the megration of a Common Forum Selection
  • parties relating to the subject matter hereof,
  • Ross Aff.
  • breaches of contracts that addr'ess the same parties and subject matter,
  • duties and obligations under the LLC Agreement."
  • as well as the breach of a separate agreement under which Eisenmann
  • and substance with the usual structure and intention of lenders in crafting such arrangements
  • Government Guarantee Fund of the Republic of Finland v. Hyatt, 95 F.3d 29 1 (3d Cir.
  • including a warrant from that the management agreement
  • RCI SENMAN & COLIN LLP

  • 14 . OPENING BRIEF IN SUPPORT OF DEFENDANTS MOTION TO DISMISS

    EXTRACTED KEY WORDS
    GREEN ISLE
    COURT
    RITZ-CARLTON
    PUERTO RICO
    HOTEL
    COMPLAINT
    MOTION
    DELAWARE
    DEFENDANTS
    TDF
    FORUM SELECTION CLAUSE
    PARTIES
    OPERATING AGREEMENT
    DISMISS
    BOOKS
    ATTOMMENT AGREEMENT
    LIMITED LIABILITY COMPANY
    REIMBURSEMENT AGREEMENT
    OBLIGATIONS
    BANKRUPTCY
    ATTORNMENT AGREEMENT
    GREEN ISLE PARTNERS
    FACTS
    PLAINTIFF GREEN ISLE
    COMMONWEALTH
    LOOMING FORECLOSURE
    ENFORCE FORUM SELECTION
    DREISBACH AFFIDAVIT
    LLC AGREEMENT
    
                       IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                 IN AND FOR NEW CASTLE COUNTY
    
     GREEN ISLE PARTNERS, LTD., S.E., a
     Florida lirnited partnership,
                                      Plaintiff,      I
                         V.                           ) C.A. No. 18416
    
     THE RITZ-CARLTON HOTEL COMPANY,                  1
     L.L.C., a Delaware limited liability company,    >
     and THE RITZ-CARLTON HOTEL
     COMPANY OF PUERTO RICO, INC., a                  ;
     Delaware corporation,
                                                      ;
                                      Defendants.     >
    
    
            OPENING BRIEF IN SUPPORT OF DEFENDANTS' MOTION TO DISMISS
            ON THE GROUND THAT THE CLAIMS ASSERTED IN THE COMPLAINT
                       MUST BE LITIGATED IN THE COURTS OF PUERTO RICO
    
    
    
    
    
    OF COUNSEL:                                       Jesse A. Finkelstein
                                                      Daniel A. Dreisbach
    Joseph G. Petrosinelli                            Richards, Layton & Finger, P.A.
    Kenneth  C. Smurzynski                            One Rodney Square
    Williams 8, Connolly LLP                          P.O. 130x 551
    725 12th Street, N.W.                             Wilmington, Delaware 19899
    Washington, D.C. 20005                            (302) 658-6541
    (202) 434-5000                                         Attotmeys  for Defendants
    
    
    
    Dal:ed:  October 24, 2000
    
    
    
    
    
    RLFFI-2222183.1
    
    
    
                                                 TABLE OF CONTENTS
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • L.L.C., a Delaware limited liability company,> and THE RITZ-CARLTON HOTEL
  • OPENING BRIEF IN SUPPORT OF DEFENDANTS' MOTION TO DISMISS ON THE GROUND THAT THE CLAIMS
  • MUST BE LITIGATED IN THE COURTS OF PUERTO RICO
  • OF FACTS
  • THIS ACTION IS RELATED TO THE ATTORNMEN'T AGREEMENT
  • A FORUM SELECTION CLAUSE NEED NOT APPEAR IN THE CONTRACT UNDlER WHICH THE CLAIM IS BROUGHT TO
  • Plaintiff Green Isle Partners, Ltd., S.E. filed its Complaint seeking
  • access to certain books and records of the defendam;, as well as a Motion to Expedite
  • Pursuant to the Scheduling Order, Defendants The Ritz-Carlton Hotel Company,
  • ' Pursuant to the Scheduling Order in this case, this brief addresses only the portion of
  • Under the terms of a written agreement between the parties:
  • Court is for Green Isle to prepare for a looming foreclosure or bankruptcy.
  • Because Delaware courts strictly enforce forum selection clauses,
  • Agreement (between Green Isle and TDF),
  • Pursuant to the Operating Agreement,
  • Ritz-Carlton L.L.C. assigned all ofits right:; and obligations under the
  • A co:py of the Reimbursement Agreement is attached as Exhibit B to the Dreisbach Affidavit.
  • and Attomment Agreement (attached as Exhibit C to the
  • 6.1 .6 In sum, the Attornment Agreement describes the circumstances under which, in the

  • 15 . COMPLAINT

    EXTRACTED KEY WORDS
    RITZ-CARLTON
    HOTEL
    OWNER
    HOTEL OPERATING AGREEMENT
    COUNSEL
    PLAINTIFF GREEN ISLE
    DEFENDANTS
    RECORDS PERTAINING
    DELAWARE
    PUERTO RICO
    BUSINESS
    BOOKS
    RITZ-CARLTON HOTEL COMPANY
    MICC
    CASH FLOW
    MICC LOAN
    REASONABLE TIMES
    DEBT SERVICE
    GREEN ISLE PARTNERS
    TDF
    ACCOUNTING
    REPRESENTATIVES
    OBLIGATIONS
    ACCOUNTANTS
    AFFILIATES
    COMPLAINT
    RCHC-LLC
    CONFIDENTIAL RELATIONSHIP
    COLIN LLP
    
                    IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                  IN AND FOR NEW CASTLE COUNTY
    
    
    GREEN ISLE PARTNERS, LTD., S.E.,
    a Florida limited partnership,
    
                                Plaintiff,
    
                     V.
    
    THE RITZ-CARLTON HOTEL COMPANY,
    L.L.C., a Delaware limited liability company,
    and THE RITZ-CARLTON HOTEL
    COMPANY OF PUERTO RICO, INC.
    a Delaware corporation,
    
                                 Defendants.
    
                                                COMPLAINT
    
                     Green Isle Partners, Ltd., S.E., by its counsel, Young Conaway Stargatt & Taylor,
    
    LLP, and its of counsel, Rosenman & Colin LLP, as and for its complaint, respectfully alleges as
    
    follows:
    
    
    I. THE PARTIES
    
                     1. Plaintiff Green Isle Partners, Ltd., S.E. ("Green Isle") is a Florida limited
    
    partnership, with an office and place of business in Weston, Florida.
    
                     2. Green Isle is the owner of a leasehold property, improvements and other
    
    assets constituting the Ritz-Carlton, San .luan Hotel, Spa & Casino (the "Project") near San Juan,
    
    Puerto Rico.
    
                     3. Defendant The Ritz-Carlton Hotel Company, L.L.C. ("RCHC-LLC") is a
    
    Delaware limited liability company, with its principal place of business in Atlanta, Georgia.
    
    
    
    
    41093661.02
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • THE RITZ-CARLTON HOTEL COMPANY,
  • L.L.C., a Delaware limited liability company, and THE RITZ-CARLTON HOTEL
  • COMPANY OF PUERTO RICO, INC. a Delaware corporation,
  • Green Isle Partners, Ltd., S.E., by its counsel, Young Conaway Stargatt & Taylor,
  • LLP, and its of counsel, Rosenman & Colin LLP, as and for its complaint, respectfully alleges
  • Plaintiff Green Isle Partners, Ltd., S.E. is a Florida limited
  • Delaware limited liability company, with its principal place of business in Atlanta, Georgia.
  • Isle and RCHC-LLC entered into an agreement with respect to the operation of the Project (the
  • "Hotel Operating Agreement," of which;a copy is annexed hereto as Exhibit 1).
  • assigned and/or delegated its obligations under the Hotel Operating Agreement to Defendant The
  • "Operator" to manage the Project for Green Isle as "Owner" as defined in that agreement.
  • have access to books and records pertaining to the Project at all reasonable times.
  • generally accepted accounting principles.
  • accountants, at all reasonable times for examination, audit, inspection,
  • All of such books and records pertaining to the Hotel,
  • other representatives shall have the right to inspect the Hotel and examine
  • confidential relationship with Ritz-Carlton, Green Isle would not have entered into the Hotel
  • Flow over the Combined Net Cash Flow Threshold" as defined in Section 5.8 of the Hotel
  • to reimburse TDF for advances under TDF's guaranty.
  • below the annual budget created by Ritz-Carlton and inadequate to pay debt service.
  • Ritz-Carlton urged that Green Isle accept a loan from its affiliate MICC and
  • The MICC Loan proceeds were to be applied to
  • Isle to have access to information, the ability of Ritz-&&on to deal with its own affiliates
  • Company of Puerto Rico, Inc. (collectively, the "Ritz-Carlton Defendants") to comply
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