The lawsuit suit alleges a $7.00 service charge billed to hotel patrons was unfair and deceptive, as many never knew about the fee, meant to cover the use of The Biltmore Hotel's fitness center, delivery of a daily newspaper, and the cost of local calls placed from in-room phones.

On June 2, 2003, Brian Shapiro filed a two-count Class Action complaint against Biltmore owner, Seaway Hotels Corporation, in which he alleges the hotel commited an unfair and deceptive trade practice when implementing the $7.00 incidental fee. The complaint alleges the hotel misled guests to believe in-room local calls were free, when in fact they were part of the surcharge.

After nearly two years of litigation, both parties agree to a proposed settlement, by where The Biltmore agrees to pay all clients, who stayed at the hotel between May '99 and the present day, $7.00 for each day at the hotel; to not exceed more than four days.

In other words, the maximum amount a given customer can receive is $28.00.

Each customer, found under hotel records to have paid the fee, will be mailed a gift certificate, which has no cash value and can only be used toward future stays at the hotel.

The certificate can be redeemed beginning September 14, 2005, the scheduled date of the settlement hearing, and will be good up to one year later.