Weil represented WoodSpring Hotels, an extended stay hotel company, in connection with litigation commenced in Kansas by industry competitor Extended Stay America hotels (ESA) against WoodSpring, WoodSpring’s former Vice President of Sales, and a former IT consultant of both WoodSpring and ESA. ESA brought eleven claims against the defendants, alleging misappropriation and use of ESA’s confidential information and trade secrets, which it claimed occurred with the knowledge and acquiescence of certain members of WoodSpring management.
Weil developed a strategy to immediately turn over all materials, and focused our efforts on developing a model that showed the potential impact on ESA to be far more limited than they had suggested. Weil successfully negotiated ESA’s withdrawal of its motions for expedited discovery and preliminary injunction at the outset of the case, allowing the parties to avoid costly and rigorous discovery. After a successful mediation, the parties reached a quick settlement despite the challenging and complex set of facts. A consent judgment and permanent injunction were entered by the court in July 2017.
Weil also represented the hotel chain in connection with a series of large-scale wage and hour investigations by the U.S. Department of Labor involving WoodSpring’s shift models and wage payment practices at various locations around the country. At issue in these investigations were certain practices that were critical to WoodSpring’s nationwide business model. Following extensive discussions and negotiations with the DOL, it did not initiate any proceeding against our client.