SADDLE BROOK, N.J. -- Hickory Travel Systems filed a complaint for
breach of contract against Germany-based TUI Business Travel, a
former partner in the now-defunct agency franchise, First Travel
Management International.
The complaint was filed in the U.S. District Court for the
Northern District of California.
According to the complaint, TUI agreed to use Hickory's
international hotel program until the end of 2005, as part of a
settlement reached in February 2001 when TUI left First Travel
Management International and joined with Maritz to form a new
travel company, TQ3 Travel Solutions.
Also as part of the settlement agreement, TUI paid Hickory $1
million.
Hickory said TUI served notice on Sept. 17 that it was
terminating the settlement agreement.
According to Hickory, that action entitles it to recover damages
totaling $1.5 million, or $500,000 for each calendar year in the
life of the settlement agreement.
The complaint names TQ3 Americas, or Maritz, as a
co-defendant.
Hickory CEO Bill Chiles said, "We have not reneged on any part
of the deal, nor have we failed to perform in any way. TUI said
they were walking away from the contract. They made no references
to paying us whatsoever."
Andreas Karsten, chief financial officer for TQ3 Europe, Middle
East and Africa (which is headed by TUI), said, "We are 100% sure
that this lawsuit is unfounded. There are no reasons for us to pay
damages to HTS, and we are prepared to defend ourselves."