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Whitey Ford v. Marriott Corp.

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00:04
in my largest settlement
00:06
uh ever we filed suit
00:09
against the marriott corporation for
00:12
selling their hotels they don’t know as
00:14
a rule don’t own hotels they manage them
00:16
they sell them to limited partners and i
00:20
cross-examined jw
00:21
marriott and i said tell me this mr
00:24
marriott
00:24
how if i might ask do you and your
00:27
family and this was a lot of money back
00:29
then
00:30
make 130 million dollars while every one
00:33
of your limited partners
00:34
lost their investment his answer was
00:37
they’re big boys
00:39
well that that we took a lunch break and
00:42
i heard his lawyers a friend of mine
00:44
tom cunningham screaming at him in the
00:46
next room
00:47
saying that’s the worst goddamn answer
00:49
i’ve ever heard
00:50
it’s and we settled that we ended up
00:53
settling that for 530 million dollars
00:56
with about
00:56
50 million dollars of forgiven debt and
00:59
as
01:00
my buddy i ran this buy put it when i
01:03
told him what the
01:04
differential was between what they made
01:06
and what happened to our partners money
01:08
the partner’s money said that’s no way
01:10
to treat a partner

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.”

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