RockResorts Receives Multi-Million Dollar Award in Hotel Management Dispute

. October 14, 2008

DALLAS, TX, March 1, 2007. The law firm of Bickel & Brewer announced today that a hotly-contested legal dispute has ended in victory for its client, hotel management company RockResorts International, LLC ("RockResorts").

On February 28, an arbitrator in Chicago issued an interim award in favor of RockResorts in the amount of $8.5 million against Cheeca Holdings, LLC ("Cheeca"), owner of the Cheeca Lodge located in Islamorada in the Florida Keys. The award follows what has been a particularly contentious and high-profile industry dispute- with both parties alleging the other's breach of contract.

"This ruling reaffirms a fundamental principle that a hotel owner cannot terminate a management company without cause," says William A. Brewer III, partner at Bickel & Brewer and lead counsel for RockResorts. "We are pleased to see that the arbitrator agreed with our viewpoint - that our client managed this property in accordance both with its contractual obligations and its own corporate standards of excellence."

The interim decision still allows RockResorts to pursue its attorneys' fees and arbitration costs in supplemental proceedings.

Cheeca terminated RockResorts in March 2006, with more than 27 years remaining on the hotel management agreement between the two parties. RockResorts alleged that it was wrongfully terminated, citing its performance record and operational challenges that were beyond its control. In that regard, the arbitrator found that the "level of service was affected by the construction and the attendant problems" associated with Cheeca's massive, 3-year renovation of the property, and that a series of hurricanes in 2004-2005 "caused major disruptions in the operations of the hotel." Nevertheless, the arbitrator concluded that RockResorts "was able to improve the service it offered at the Hotel."

The arbitration award states: "Throughout the 33 months it operated the Hotel, manager improved its overall service offered to guests of the Hotel, raised its ratings with a number of independent evaluation services, and generally operated the Hotel at a level equivalent to the Mobil Four Star Standard." Accordingly, the arbitrator held that Cheeca "was not justified in terminating" the 30-year RockResorts' management agreement and that, as a result, RockResorts was entitled to $8.5 million as compensation "for the loss of its contract rights and the reasonable contract profits it would have received without termination in March of 2006."

The legal battle between the parties began in March 2006, with the commencement of the arbitration shortly after the owner's premature termination. The final hearings took place from August 21 - September 1, 2006, and from September 25 - October 6, 2006 in Chicago. After the submission of extensive post-hearing briefs, the arbitrator heard closing arguments on January 12, 2007, which was followed by his 17-page award.

Brewer was joined in representing RockResorts by James S. Renard and Michael S. Gardner, both partners at Bickel & Brewer.

Cheeca Holdings was represented by Robert Mangels and Paul R. Hamilton of Jeffer, Mangels, Butler & Marmaro, LLP, located in Los Angeles; Robert W. Tarun and Deborah L. Steiner of Latham & Watkins, located in Chicago; and Glenn J. Waldman of Waldman, Feluren, Hildebrandt & Trigoboff, P.A., located in Weston, Florida.

About RockResorts International, LLC:

RockResorts, a luxury resort hotel company with headquarters in Denver, Colorado, owns and/or manages luxury resort hotels in five states. The RockResorts portfolio includes The Pines Lodge in Beaver Creek, Colorado; Keystone Lodge in Keystone, Colorado; The Lodge & Spa at Cordillera in Vail Valley, Colorado, The Lodge At Vail in Vail, Colorado; La Posada de Santa Fe Resort & Spa in New Mexico; The Equinox Resort & Spa in Manchester, Vermont; Rosario Resort & Spa in the San Juan Islands of Washington; and Snake River Lodge & Spa in Jackson Hole, Wyoming.

About Bickel & Brewer:

Founded in 1984, Bickel & Brewer has earned a reputation as one of the most aggressive and successful law firms in the United States practicing exclusively in the field of complex commercial litigation and dispute resolution. With offices in Dallas and New York, Bickel & Brewer represents a wide spectrum of industry leaders - from entrepreneurs to Fortune 500 corporations - facing the most challenging of legal issues. Visit Bickel & Brewer at www.bickelbrewer.com.