Tuesday, August 12, 2014

Conflicts Story Update: $270k in Sanctions

Law360 (subscription required for full article) reports that: "Boies Schiller Fined For Conflict In $350M Antitrust Suit" --
  • "Boies Schiller & Flexner LLP was ordered by a New York federal judge Friday to pay Host Hotels & Resorts Inc. about $270,000 in sanctions for failing to bow out of a $350 million antitrust suit over a scheme to keep Marriott International Inc.'s flagship New York hotels union-free."
  • "U.S. District Judge Colleen McMahon, who initially ordered the law firm sanctioned in October for ignoring a conflict of interest that "could not have been clearer," awarded Host a sanction of $271,063 in legal fees for work..."
For non-paywalled history and detail on this matter, see also this article from 2013 for additional background, as the facts and accusations in this matter are complex and worth attention:
  • "On March 8 [2013], Boies Schiller filed a motion to withdraw from the case after Host Hotels threatened to file a motion to disqualify the firm from the litigation. Host Hotels hired the firm in 2000 to examine the company's business relationship with Marriott, which manages some of its hotel properties."
  • "Boies Schiller's outside ethics counsel informed Host Hotels that it would not reimburse it for any portion of its costs associated with drafting the motion because it made attempts to withdraw after the company presented the firm with documents solidifying the conflict, Host Hotels said."
  • "Host Hotels seeks reimbursement for its attorneys' fees and expenses associated with investigating Boies Schiller's conflict-of-interest. The company denies that it participated in any unlawful conduct in its dealings with Marriott."
At the time this matter first made news, we pointed out additional detail, commentary and analysis worth reviewing as well. (Including interesting details on the specific timing, scope and suitability of the searching performed by the firm.)

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