Misappropriation

A large city filed suit against the local chamber of commerce
for breach of fiduciary duty and breach of contract in the administration and management of hotel occupancy tax (HOT) funds. An audit of the chamber’s financial records found more than $700,000 in funds was misused. The suit alleged that the chamber and its leadership failed to adequately account for expenditures of HOT funds, improperly used HOT funds and failed to notify the city of HOT funds remaining after each budget year. After a two week trial, a jury returned a verdict against the chamber and its former president. The jury awarded the city $649,000 in damages and $125,000 in attorney fees.

Related Products