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Ritz-Carlton Guests Settle "Resort Fee" Action for $375,000

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Case ID: 2539 | Miscellaneous | 03/15/2004

The parties have reached a tentative $375,000 settlement in a class action against The Ritz-Carlton Hotel Company, LLC on behalf of all persons who stayed at the Ritz-Carlton hotels in Kapalua or Laguna Niguel between August 8, 1997, and January 16, 2003, or at the Rancho Mirage resort between August 8, 1997, and November 30, 2001, and paid the Ritz-Carlton a "resort fee" in addition to the per-night rate without being told of the extra fee. The legal notice describing the class action does not state the deadline for requesting the benefits available under the settlement.

The action alleges that Ritz-Carlton failed to inform guests sufficiently about the resort fee that was imposed at these three Ritz-Carlton resorts. The amount of the resort fee varied by property and over time, ranging from $8 to $20. The action alleges that Ritz-Carlton breached its contract with guests and engaged in unfair and deceptive business practices by not providing adequate notice of and information about the resort fee.

More specifically, the class is composed of persons who:

1. stayed at the Ritz-Carlton resorts in Kapalua or Laguna Niguel between August 8, 1997, and January 16, 2003, or at the Ritz-Carlton, Rancho Mirage, between August 8, 1997, and November 30, 2001;

2. paid the hotel a resort fee in addition to the per-night room rate; and

3. either did not receive notice of the additional charge at the time the reservation was made, or if no reservation was made, at the time of check-in at the hotel; or was misinformed or misled about the nature, purpose, amount, or ultimate recipient of the resort fee due to information received at or about the time of reservation, check-in, or check-out.

Guests who booked their rooms under a group contract that expressly provided for the payment of resort fees are excluded from the class. If you have been reimbursed for the resort fee or if the resort fee was refunded, you are also excluded from the settlement.

The notice that may be obtained through the settlement website contains two certificates for a discount off one night's stay at any participating Ritz-Carlton resort. The value of the certificates for individual claimants is determined by the approximate amount of the per night resort fee that Ritz-Carlton charged to that claimant. Those who were charged a daily resort fee of approximately $5 to $7.50 will be entitled to two certificates with a face value of $8.50 each. Claimants who were charged a daily resort fee of approximately $8 to $10 will be entitled to two certificates with a face value of $12.50 each. Claimants who were charged a daily resort fee of approximately $12 to $15 will be entitled to two certificates with a face value of $18.50 each. Claimants who were charged a daily resort fee of approximately $20 will be entitled to two certificates with a face value of $27 each.

To use the certificates, claimants will have to sign a statement indicating that they satisfy the criteria stated above to qualify. The certificates have no blackout dates and are valid as long as rooms are available from October 1, 2003, through April 1, 2005; however, these dates may be subject to change and Ritz-Carlton can cancel the certificates if an excessive number of class members exclude themselves from the settlement, so be sure to confirm that a certificate is valid by disclosing the serial number on the face of the certificate when you make your reservation by calling 1-800-745-8098, or asking your travel agent to do the same.

The certificates are valid for a discount off any published room rate except for promotional rates and AAA rates, AARP rates and other qualified discounts. The certificates are valid on rooms booked through the Ritz-Carlton telephone reservation system, but cannot be used for rooms booked through third-party discount booking services such as Expedia, Travelocity, Orbitz, or Priceline, among others, or for rooms booked under group or corporate contracts or by travel consolidators, wholesalers, brokers, or tour services.

The certificates cannot be combined with other certificates or applied to complimentary stays at a participating Ritz-Carlton Hotel, cannot be transferred to anyone except immediate family members, and cannot be sold or redeemed for cash. In order to redeem a certificate, you must disclose the certificate's serial number at the time of reservation and present the certificate at check-in.

The settlement will not be effective until the court grants it final approval. The court has scheduled a hearing on the matter for August 14, 2003.


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