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Law360 (September 18, 2020, 7:18 PM EDT ) Fox News on Thursday slammed a Milwaukee-area Hilton for allegedly refusing to refund more than $100,000 the network spent on hotel rooms for its staff to cover the Democratic National Convention, which ended up shifting to an online event because of COVID-19.
According to the complaint lodged in New York state court, Fox News reserved the rooms at Tru By Hilton Milwaukee Brookfield in late March. The network paid the hotel $106,032 up front, it said in the suit.
In April, Fox News and Tru added language to the contract specifying that if the DNC was canceled, the hotel couldn't provide the rooms or the network couldn't use them due to the pandemic, the hotel would "promptly refund" the network in full, according to the suit.
"Each of the hotel and Fox News agree that the occurrence of a force majeure event shall result in the cancellation of this agreement and the release of each of them from their respective obligations under this agreement," the contract allegedly stated.
That same month, the convention was postponed and shifted to a mostly virtual event.
"The cancellation of the Democratic National Convention as an 'in person' event, and the change in status and format of the convention that affected the ability of plaintiff to utilize the rooms of [Tru] due to COVID-19 constitutes a force majeure event under the terms of the addendum," Fox News said in the suit.
But despite repeated demands for a refund in full, Tru has refused to refund Fox News' money, it said.
Fox News is alleging breach of contract and unjust enrichment. The network is after $106,032 in damages for both causes of action as well as attorney fees and court costs.
A Hilton spokesperson told Law360 that Tru By Hilton Milwaukee Brookfield is an independent property. Hotel ownership didn't immediately return a request for comment, and Fox News declined to comment Friday.
Hilton's franchisor arm fielded a similar suit from an HVAC trade group over $1.41 million in security deposits the group said it made for a convention in Hawaii that was later canceled. In that case, the Mechanical Contractors Association of America Inc. claimed that the Grand Wailea Resort Hotel & Spa in Wailea, Hawaii, which is operated by Hilton, had advertised that it will refund all cancellations during the pandemic but has no intention of holding to that promise. But the company has failed to cough up the money, it said.
"Hilton has not complied with its own COVID-19 refund policy as MCAA individual members are eligible to have their reservations 'cancelled at no charge,'" the trade group said at the time.
Fox News is represented by Steven W. Gold, Ryan W. Lawler and Adam K. Brody of Mintz & Gold LLP.
Counsel information for the Hilton wasn't immediately available Friday.
The case is Fox News Network LLC v. Tru By Hilton Milwaukee Brookfield, case number 654506/2020, in New York Supreme Court for New York County.
--Editing by Gemma Horowitz.
Correction: An earlier version of the story misstated the owner of the Grand Wailea Resort Hotel & Spa. The error has been corrected.
For a reprint of this article, please contact reprints@law360.com.
