A report from law360.com states that the Walt Disney World Swan and Dolphin owners Tishman Realty are being sued over their refusal to waive cancellation fees for a conference scheduled to be held by Cambridge Investment Research Inc in September 2020.
In the suit, Cambridge is asking a judge to rule on whether they are liable for cancellation fees or other damages for cancelling their conference due to the ongoing COVID-19 global pandemic. Cambridge is reportedly on the hook for $1.1 million, according to the complaint.
Cambridge reportedly decided to cancel their conference at the beginning of June, a month before Florida would hit their daily peak in cases, but at a time when it was clear that there was an uptick in cases. In addition to the concerning rise in cases, the Swan and Dolphin hotel wasn’t even open for business on June 4th when Cambridge notified them that they would be cancelling their contract, citing the force majeure clause.
“The numerous government restrictions in place would make it illegal, impossible or impracticable to hold the conference indoors at the hotel,” Cambridge said. “For example, the hotel’s elevators and walkway spaces would not be able to accommodate the transit of approximately 2,200 attendees while still observing proper social distancing.”
The force majeure section of the contract says that the “performance of this agreement by either party is subject to acts of God, government authority, disaster, or other emergencies, any of which make it illegal or impossible to provide the facilities and/or services for your meeting”.
Despite the uptick in cases and uncertainty on how physical distancing would impact a potential conference, the Swan and Dolphin still was seeking cancellation fees, saying, “that it did not appear that force majeure would apply, and that regardless of its applicability it could not be determined until the dates occurred”.
The lawsuit is taking place in the U.S. District Court for the Middle District of Florida.
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