The lawsuit and countersuit have been filed in the past twoweeks in the Texas District Court in Dallas. William A. Brewer IIIof Dallas-based Bickel & Brewer represents Park Cities HotelLP, led by prominent local businessman, R. Maurice Crowe. Brewertells GlobeSt.com that he expects it will be a year before the casecomes to trial. But, it will come to trial, he says, dismissing thepossibility for an out-of-court settlement at this stage betweenthe hotel owners and their former management company and investmentpartner in the venture. MeriStar held a 15-year management contractfor the 220-room Park Cities Hilton and loaned $500,000 at 12.5%interest to the group.

MeriStar has hired the Dallas firm of Strasburger & PriceLLP. MeriStar is withholding comments about the litigation, but didprovide a copy of its counterclaim.

The hotel limited partnership is seeking upward of $10 millionin compensatory damages and three times the amount of actualdamages in punitive payment. The lawsuit accuses MeriStar ofdiverting large bookings to other Dallas-area managed or ownedproperties in the MeriStar portfolio. "But more important," Brewersays, "is what it does to the economic business of the firm." Hesays much of the information in the lawsuit is based on informationfrom at least a half dozen MeriStar whistleblowers, now working forthe hotel owners who are in the midst of negotiations with a newmanagement operator.