Management Group Accused of Trespassing Following Termination

Owners of a leading hotel investment and ownership group filed for an injunction in San Diego federal court to oust Four Seasons Hotels Limited from its continued occupation of their Aviara Resort amid allegations that Four Seasons breached its fiduciary duties and mismanaged the 329-room luxury property.

The ownership group, BRCP HEF Hotel Tenant, LLC, confirmed that Four Seasons has been terminated from its management agreement at the luxury resort at the luxury resort in Carlsbad, California. Four Seasons now faces charges of trespassing due to its refusal to vacate the property. In early May, the owners notified Four Seasons that Dolce Hotels and Resorts would assume management of the resort property. Four Seasons notified the resort owners that it would resist a transfer of management, and threatened a “breach of the peace” at the resort if the owners or representatives of Dolce attempted to take over possession of the hotel.

“Our client—the owners of the resort—have terminated Four Seasons, and believe that Four Seasons is occupying the resort without the authority to do so,” said William Brewer III, partner at Bickel and Brewer and lead counsel for the owners. However, in consideration of resort guests and employees, the owners opted not to risk a physical confrontation with Four Seasons at the property and, instead, filed an application seeking a temporary restraining order and injunctive relief to remove Four Seasons. The owners’ have filed an application and a hearing was scheduled for May 27.

The property will be managed as an independent luxury resort, and Dolce has been selected as the resort’s new management company. The owners terminated Four Seasons and the management agreement between the parties on March 29, but Four Seasons refused to acknowledge that termination or to cooperate in a transfer of control of the hotel property to a new management company. The owners also began an arbitration proceeding against Four Seasons, seeking tens of millions of dollars in financial damages.