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Houston, TX commercial litigation attorney David Berg shares the story of the Whitey Ford v. Marriott Corp. case which resulted in a $530 million settlement. He explains that his largest settlement ever came from a lawsuit against the Marriott Corporation. Marriott, as a rule, doesn’t own the hotels it operates—they sell them to limited partners and manage them. He cross-examines JW Marriott himself, asking, “Mr. Marriott, how—if I might ask—did you and your family make $130 million while every one of your limited partners lost their investment?”
Marriott’s answer is simple: “They’re big boys.”
During the lunch break, he overhears Marriott’s lawyers—his friend Tom Cunningham among them—screaming in frustration: “That’s the worst goddamn answer I’ve ever heard!”
The case settles for $530 million, including about $50 million in forgiven debt. Reflecting on the massive differential between what Marriott and his family made versus what happened to the partners’ money, he recalls telling his buddy, “That’s no way to treat a partner.”
