Nicholas “phi” Shectman, President of Arisia, Inc., reports the group has suffered a major setback in litigation over the Boston convention’s cancellation of plans to use two strike-affected hotels for the 2019 event. An arbitrator has made a large award to one of the hotels, the Aloft (under Marriott management). Con organizers are questioning whether the event can survive a second decision of that magnitude.
Shectman’s statement explains the immediate situation:
Last month, Arisia participated in an arbitration hearing for the dispute with the Aloft Boston Seaport District hotel over our strike response and move to the Boston Park Plaza Hotel for 2019.
Yesterday (July 9th), Arisia received notification that arbitration in the Aloft case went against us. The arbitrator agreed with Marriott’s arguments and awarded them $44,000 plus fees. They have 20 days to state an exact schedule of fees they will ask for; we expect it to be in the range of $10,000 – $20,000. As a high end, a penalty of $65,000 is something that Arisia can absorb, but only just. We still expect to win the Westin Boston Waterfront arbitration due to differences in contract wording, and we expect Marriott believes they will win. A loss there would incur a similar cost.
Losing both cases would exceed Arisia’s financial resources. The Arisia Eboard is actively investigating what would happen next, and what we can and cannot do in various dissolution scenarios. We expect to know soon what these scenarios might cost us. We are also still learning what our legal obligations would be for gracefully wrapping up operations in case we must dissolve, including expenditures like making grants, the 2020 convention, paying our storage costs, and so on. Bankruptcy proceedings themselves can take considerable time, and can involve additional legal costs.
Tomorrow morning (July 11th) is the hearing for the Westin arbitration. We are also in negotiations with the Marriott lawyers for a possible settlement. We expect to have more news to share publicly on both of those topics in the coming weeks.