Nicholas “phi” Shectman, President of Arisia, Inc., reports the other shoe has dropped — the group will owe another large amount from the Westin arbitration decision on top of the penalties already due to the Aloft/Marriott (“Arisia Suffers Reverse in Contract Dispute with Aloft”). The liabilities resulted from the Boston convention’s cancellation of plans to use two strike-affected hotels for their 2019 event.
Shectman’s statement tells the precise liability owed to the Aloft, and the amount of the judgment in the Westin case.
This morning, the Executive Board received notice of the fees and interest due to the Aloft in addition to the $44,417.50 award. These total $16,731.71.
This afternoon, the Executive Board was informed that the ADR with the Westin was decided against us. Judgment was set at $50,000 plus fees and interest, exact amount still unknown but probably similar to the Aloft.
This, combined with the loss in the Aloft case, presents Arisia with obligations that far exceed our reserves and expected immediate income. Whether this is a loss in excess of what Arisia can manage depends a great deal on what terms of payment can be agreed. Paying $125,000 is impossible now, but might be possible over some number of years, even with interest.
The Eboard is continuing to consult with legal counsel and attempting to negotiate with Marriott in order to clarify exactly what our options are and what the costs of these options would be. We will keep the membership informed as the situation develops further.
We recognize and appreciate our community’s willingness to support us with additional dollars. Fundraising is likely to be a part of any scenario. We should have more information there within a few weeks. Fundraising details will depend on pending legal questions, so we would prefer not to speculate on what shape that will take until then.
This matter will certainly be discussed at the upcoming corporate meeting on August 22nd. At this time, the Eboard has no motion or recommendation that it plans to bring. Until we learn otherwise, nothing is off the table.
We would also like to thank the Arisia community for its continued support through the uncertain days ahead. Your enthusiasm is why we do this, and we couldn’t do it without you.
— Nicholas “phi” Shectman, President, Arisia Inc.