First Department Affirms Denial of Motion to Enjoin $13.6 Billion Starwood-Marriott Merger
Cahill prevailed on behalf of Starwood Hotels & Resorts Inc. (“Starwood”), Sheraton Operating Corporation, The Sheraton LLC and Westin Hotel Management, LP in connection with a lawsuit brought by Cityfront Hotel Associates LP and Dream Team Hotel Associates LLC (two Tishman Hotel Corporation affiliates), that sought to enjoin the then-pending $13.6 billion merger between Starwood and Marriott International, Inc, which would create the world's largest hotel company. The plaintiffs alleged the merger would violate area of protection agreements relating to their properties in Chicago and New York.
On June 1, 2016 the Supreme Court, New York County denied Plaintiffs’ motion to preliminarily enjoin the merger and on September 27, 2016, after full briefing, the Appellate Division, First Department, affirmed the prior ruling denying plaintiffs’ motion to preliminarily enjoin the merger. On September 23, 2016 the merger closed.