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Murcott v. Best Western International8/31/2000
urcott also complained about a potential antitrust law violation to Best Western's outside legal counsel, Kenneth Sundlof, who at trial recalled a discussion with Murcott of antitrust concepts. Specifically, they addressed the possibility that a rejected applicant who met the company's requirements could claim that the company had attempted to protect the business of an existing member in violation of antitrust law.
d. Page, Arizona
Sometime in 1994, two applications for Best Western memberships were submitted in Page, Arizona. One application came from the "Weston family," owners of existing Best Western hotels in Page, and another from J. J. Wang. Wang's application was approved by the board; the Weston application was denied. In November 1994, Wang advised Best Western that he was having drainage problems with the proposed site and that he intended to construct his new hotel across the street.
Brown then reopened consideration of the Weston application. Murcott testified that he believed Brown was being swayed by contacts with the Weston family and that this behavior was unfair to Wang. Murcott recalled meeting with Brown in November 1994 to express his objections to the lobbying efforts, telling Brown that his actions were "immoral" and "illegal." Brown admitted at trial that it was possible that Murcott told him that Wang might pursue an antitrust claim.
In January 1995, the board discussed both the Weston and Wang applications. Murcott testified at trial that he reiterated his objections at the board meeting, stating that there was no basis to deny the Wang application. Board member Seaton admitted that Murcott expressed concern that Best Western risked running afoul of federal and state antitrust laws.
The board approved the Weston application in a 4-3 vote. Thereafter, Wang's attorney sent a letter to Best Western complaining about violations of internal policies. The board ultimately decided to let stand its approval of the Wang application.
e. Vancouver and Victoria, Canada (Surrey Inn and Coachman Inn)
In July 1994, the Coachman Inn in Victoria, Canada applied for membership. According to Murcott, defendant Mathis, the director for that region, was unfamiliar with the applicant's property. Other board members suggested that Mathis visit the site to evaluate it personally. According to Murcott, Mathis, after visiting the location, advised the board that he had spoken to a member with a hotel in the area who expressed concerns regarding the economic impact of the Coachman Inn on the existing member's business.
Mathis testified that he recommended that the Board deny the application because he considered the property in question to be highly undesirable in both appearance and location. Murcott addressed the board and protested that Mathis had gone outside Best Western's antitrust policies, was protecting a member and creating an exclusive territory. He also raised concerns about potential antitrust violations with Sundlof. The board declined the Coachman Inn application.
Subsequently, in January 1995, Best Western received an application from the Surrey Inn in Vancouver, Canada, another hotel within Mathis' region. Although the staff recommended "conditional approval" of the Surrey Inn's application, defendant Mathis expressed his opinion that the Surrey Inn would negatively affect an existing nearby member, the Best Western Pacific Inn. Murcott acknowledged at trial that the board frequently deferred to the recommendations of the regional director because such local knowledge "is often extremely beneficial in the evaluat[ion of] the applications." The Surrey Inn application w
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