Kerzner International Bahamas Ltd. has been sued in California Superior Court for allegedly misinforming hotel guests at Atlantis Paradise Island and the Ocean Club about hotel fees.
And, in order to avoid “expense, inconvenience and interference with ongoing business operations,” Kerzner has agreed to settle the lawsuit alleging that the company “provided inadequate or misleading disclosure of hotel fees, including a housekeeping and or energy surcharge, tax or gratuity.”
In fact, Kerzner has agreed to pay up to $1.5 million and change certain language on the Atlantis website in order to settle the suit, though the company insists the settlement was “a compromise of the disputed claims and does not mean that liability or damages would have been found or awarded.”
The suit is a class action. The class includes anyone who paid a housekeeping and or energy surcharge, tax or gratuity at the Atlantis Paradise Island or the Ocean Club any time from June 24, 2001 to “the present,” and “who were located in or otherwise subject to the laws of the United States at the time of booking their reservation at Atlantis or the Ocean Club.”
While “vigorously” denying any wrongdoing or “any liability whatsoever,” Kerzner has apparently concluded that it is in the companyﾒs best interest to settle the litigation.
The terms of the settlement call for Kerzner to change the term “Energy Surcharge” on its “www.atlantis.com” to “Utility Service Fee,” and the term “Housekeeping Gratuity” to “Mandatory Housekeeping Gratuity.”
On the Kerzner website, the company lists those changes among the benefits that will result from the settlement. The other benefit listed is a $5 coupon per person per night for each person who stayed or will be staying at Atlantis or Ocean Club during the class period. The class period, according to Kerzner, is between June 24, 2001 and July 19, 2006.
In order to get the coupon, those in the “class” must fill out a “Declaration” available online. Without a valid declaration, one is not entitled to the coupon.
Kerzner has also agreed to pay the attorneyﾒs fees up to $75,000.
According to the lawsuit, the alleged “inadequate or misleading disclosure of hotel fees” constituted “a breach of contract” and “violated California Business and Professions Codeﾅ”
Kerzner pointed out that the Superior Court of California “has not heard, decided or passed on any of the partiesﾒ contentions and this Notice shall not be interpreted as an expression of any opinion by the Court as to the merits of or defenses to any of the claims by any party.”
Again according to the Kerzner website, “the parties have agreed to the settlementﾅIf the settlement is finally approved, the (listed) benefits will result.”
The California Court will hold a hearing on the fairness of the proposed settlement on the morning of August 24.
By: Quincy Parker, The Bahama Journal
