On Nov. 25, a federal judge ruled JCD shall take nothing from Marriott, finding the travel agency breached the no-transfer provision in an agreement between the parties.
JCD sued Marriott shortly after it declared its intention to renege on a commitment to 300 rooms for the nights on Feb. 2, 2017, through Feb. 5.
Marriott claimed JCD’s resale of the rooms to a client of its sports travel business breached the Group Sales Agreement between them.
While the agreement recognized that JCD is a travel agency and that the rooms would be used in furtherance of its business, the agreement also prohibited JCD from reselling the rooms not associated with the company.
In its suit, JCD argued Marriott Galleria Hotel’s reason for refusing to comply with the agreement was nothing more than a “flimsy excuse” to make the very same rooms available for “a more lucrative patron,” the National Football League.
“Upon information and belief, the Marriott Galleria Hotel executed a contract with the NFL, after the execution of the subject GSA, which purports to allocate to the NFL the entire room inventory at the Marriott Galleria Hotel during the time frame in question,” the suit states.
“Therefore, the Marriott Galleria Hotel breached its obligations to both JCD and the NFL immediately upon its execution of the inconsistent contracts.”
In a motion to dismiss, Marriott argued JCD contracted to house a group of people “associated with JCD Marketing,” but instead resold the rooms to “major corporations, retail travel agencies, and other individual customers throughout the United States.”
“Thus, JCD’s attempts to resell the hotel rooms deprived the hotel of the benefit of its bargain,” the motion states.
“JCD deliberately breached the plain terms of the GSA and said so on the face of its Complaint. Construing the facts in the light most favorable to Plaintiff, JCD cannot maintain this suit against Defendants.”
JCD is repsented by Karen Smith, attorney for the Houston law firm Baker, Donelson, Bearman, Caldwell & Berkowitz.
Andrews Kurth attorney John McDowell Jr. represents Marriott.
U.S. District Judge Lynn Hughes presided over the case.
Case No. 4:16-cv-02908