Starwood files lawsuit against Le Parker Meridien NYC after "$1m ripoff scam"
Jan 10, 2013, 9:09 am
#46
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Jan 12, 2013, 5:23 pm
#47
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I'm amazed that Starwood didn't catch this right away. Assuming they have daily occupancy stats on their hotels, it wouldn't require very sophisticated math to detect the behavior described here.
Jan 12, 2013, 7:10 pm
#48
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As long as the hotel owners fulfilled all of their due tax liability and government reporting requirements, criminal prosecution involving this matter sounds unlikely or an uphill challenge in such matters if getting a conviction is the goal.
Jan 13, 2013, 5:21 am
#49
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Jan 13, 2013, 11:19 am
#50
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Now that I think about this some more and reading a post elsewhere by l'etiole, I think it would be good if Starwood expanded their complaint against the LPM's to include past guests.
I know of many SPG members who were denied upgrades and I wonder if that was a result of these fake bookings? And to the point of the owners doing elaborate things to squeeze extra revenue out of SPG, I wonder if all the times I was denied benefits (4PM checkout, points on certain rates, alternative amenity, "forgotten" Ambassador amenities, etc.) SPG was still charged for them? Multiply that by hundreds of guests, and that could make that million dollar figure grow.
It's sad because the Palm Springs property is beautiful, but this lawsuit does connect some dots on why there has been such poor service over the years.
I know of many SPG members who were denied upgrades and I wonder if that was a result of these fake bookings? And to the point of the owners doing elaborate things to squeeze extra revenue out of SPG, I wonder if all the times I was denied benefits (4PM checkout, points on certain rates, alternative amenity, "forgotten" Ambassador amenities, etc.) SPG was still charged for them? Multiply that by hundreds of guests, and that could make that million dollar figure grow.
It's sad because the Palm Springs property is beautiful, but this lawsuit does connect some dots on why there has been such poor service over the years.
Jan 13, 2013, 2:16 pm
#51
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Now that I think about this some more and reading a post elsewhere by l'etiole, I think it would be good if Starwood expanded their complaint against the LPM's to include past guests.
I know of many SPG members who were denied upgrades and I wonder if that was a result of these fake bookings? And to the point of the owners doing elaborate things to squeeze extra revenue out of SPG, I wonder if all the times I was denied benefits (4PM checkout, points on certain rates, alternative amenity, "forgotten" Ambassador amenities, etc.) SPG was still charged for them? Multiply that by hundreds of guests, and that could make that million dollar figure grow.
It's sad because the Palm Springs property is beautiful, but this lawsuit does connect some dots on why there has been such poor service over the years.
I know of many SPG members who were denied upgrades and I wonder if that was a result of these fake bookings? And to the point of the owners doing elaborate things to squeeze extra revenue out of SPG, I wonder if all the times I was denied benefits (4PM checkout, points on certain rates, alternative amenity, "forgotten" Ambassador amenities, etc.) SPG was still charged for them? Multiply that by hundreds of guests, and that could make that million dollar figure grow.
It's sad because the Palm Springs property is beautiful, but this lawsuit does connect some dots on why there has been such poor service over the years.
Jan 13, 2013, 2:36 pm
#52
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On what legal ground, though? While there may well be plenty of incidents of benefits not being delivered, I am not aware of any legal recourse for such shortfalls -- certainly not for the SPG members themselves.
Jan 13, 2013, 4:02 pm
#53
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What legal recourse? When I contract for a hotel room I am entering into an agreement to be provided a basket of goods, including gold and platinum benefits. If they are not provided to me for reasons that may not be on the straight and narrow I think there could be a case for breach of contract. Possibly also in tort for damages incurred as a result of LPM's actions. I am sure there are others who are a lot more clever than I am who could think of many more reasons to sue for benefits not being delivered.
Jan 13, 2013, 4:20 pm
#54
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What legal recourse? When I contract for a hotel room I am entering into an agreement to be provided a basket of goods, including gold and platinum benefits. If they are not provided to me for reasons that may not be on the straight and narrow I think there could be a case for breach of contract. Possibly also in tort for damages incurred as a result of LPM's actions. I am sure there are others who are a lot more clever than I am who could think of many more reasons to sue for benefits not being delivered.
Cheers,
Jan 13, 2013, 7:11 pm
#55
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Nope. I like your thinking, but forget it. The legal contract one enters into with the hotel has to do with the payment for accommodation, but NOT for elite benefit delivery. In day to day practice, you may get traction on elite benefit issues through SPG, but not through the courts.
Jan 13, 2013, 7:21 pm
#56
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these fake occupancies affected your upgrades.
Jan 13, 2013, 7:42 pm
#57
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I don't think the fake occupancy levels would affect anything except the hotel category, thus redemption rates. Obviously I don't know for sure but that's my impression.
The lack of benefits is simply cheap management. And before anyone jumps in to defend them and tell us what a great stay you had, isn't this ENTIRE thread really based on Starwood going after them for dishonest management?
The lack of benefits is simply cheap management. And before anyone jumps in to defend them and tell us what a great stay you had, isn't this ENTIRE thread really based on Starwood going after them for dishonest management?
Jan 13, 2013, 7:48 pm
#58
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11.12 Limitation of Liability. IN NO EVENT WILL STARWOOD OR ANY SPG PARTICIPATING HOTEL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL, EXEMPLARY, PUNITIVE, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, WHETHER BASED IN CONTRACT, TORT OR OTHERWISE, WHICH ARISE OUT OF OR ARE IN ANY WAY CONNECTED WITH THE SPG PROGRAM OR THESE SPG PROGRAM TERMS.
11.13 Choice of Law and Venue. Any disputes arising out of or related to the SPG Program or these SPG Program Terms will be handled individually without any class action, and will be governed by, construed and enforced in accordance with the laws of the State of New York, United States, without regard to its conflicts of law rules. The exclusive jurisdiction for any claim or action arising out of or relating to these SPG Program Terms or the SPG Program may be filed only in the state or federal courts located in the State of New York, United States.
11.13 Choice of Law and Venue. Any disputes arising out of or related to the SPG Program or these SPG Program Terms will be handled individually without any class action, and will be governed by, construed and enforced in accordance with the laws of the State of New York, United States, without regard to its conflicts of law rules. The exclusive jurisdiction for any claim or action arising out of or relating to these SPG Program Terms or the SPG Program may be filed only in the state or federal courts located in the State of New York, United States.
Jan 13, 2013, 8:52 pm
#59
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I'm just suggesting that Starwood consider the many guests who were possibly duped/denied benefits by the LPM's actions when calculating the possible fraud.
Jan 14, 2013, 7:59 am
#60
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My read of that is that no action can be taken by an individual against SPG. If however a property has a fraudulent and dishonest scheme in place that impacts the SPG benefits to individuals then presumably there is a right in contract against the property pursuing such a scheme? Particularly when the property's own website extols the virtues of SPG including the tier benefits or links to the SPG benefits page.
Surely at the very least that is tantamount to pre-contractual misrepresentation?
Surely at the very least that is tantamount to pre-contractual misrepresentation?