FORT LAUDERDALE -
A court battle to recall commissions from agents who sold
Renaissance Cruises ended last week after the attorney for
Renaissance's estate dropped his claims against four agencies.
The four agencies
were represented by ASTA, which has argued that agents should keep
commissions paid to them before Renaissance went bankrupt in
September 2001. The trial was to begin this week.
The attorney for
the estate, Joel Tabas of Miami-based Tabas Freedman Soloff and
Miller, told Travel Weekly in an interview that it wouldn't have
been cost-effective to go to trial over the amount in question,
which he estimated was between $4,000 and $5,000 in
commissions.
"Getting this
thing ready [for trial] would have cost $15,000 to $20,000," he
said.
Of the 10
agencies initially involved in the trial, Tabas said, two went out
of business and four others settled, including one with the largest
claim, which represented about $30,000 in commissions.
Even with all 10
agents, it was "borderline cost-effective," Tabas said.
As part of
Renaissance's liquidation plan, Tabas in 2003 sued some 750
retailers who had received commission on unsailed Renaissance
cruises.
ASTA, acting on
behalf of seven ASTA-member agencies, filed a countersuit and
requested class-action status for agents.
That class-action
bid, as well as ASTA's suit, was rejected by bankruptcy judge
Raymond Ray in November 2003.
At that time, Ray
declined to address whether the trustee was entitled to reclaim
commissions on unsailed cruises.
Even though no
legal precedent was set, ASTA last week claimed a
victory.
In a statement,
ASTA President Kathy Sudeikis said, "It's our hope that this case
will serve as a strong caution in future supplier bankruptcies
-that commissions travel agents earn for selling supplier products
are not to be regarded as an easy source of funds to pay off the
creditors of failed suppliers."
Half of the
agents sued by the liquidating trust have settled for an amount
that totals about $1.3 million, Tabas said. The firm obtained
default judgments on the remaining cases.
"For this to have
precedential effect, [ASTA] had to have a court ruling," he
said.
To contact
reporter Rebecca Tobin, send e-mail to[email protected].