The American Society of Travel Agents (ASTA) objected to a move by the committee overseeing the Renaissance Cruises bankruptcy to recall agency commissions on cruises that did not sail.
ASTA last week sent a letter to Gary M. Freedman, Esq., of Tabas, Freedman & Soloff, P.A., of Miami, the counsel for the Official Committee of Unsecured Creditors, stating that ASTA learned you have been writing to various agencies demanding repayment of commissions earned by these agencies on sales procured on behalf of Renaissance Cruises, Inc. … Such a demand is neither supported by the law or the facts and represents an attempt on the part of the Unsecured Creditors Committee to secure for the bankruptcy estate funds to which it is not entitled.
The ASTA letter cites a familiar Common Law principle that an agent is engaged by his principle to find a purchaser ready, willing and able to purchase upon the seller`s terms. Having done so, absent some agreement to the contrary, the agent has done all that is required of it and has fully earned its commission, regardless of the outcome of the sale. ASTA took strong issue with the firm communicating with lay people, citing bankruptcy code sections and demanding the repayment of the commissions. The letter was copied to Roberto Angueira, Assistant U.S. Trustee in Miami.
We are awaiting a response from Mr. Freedman, said ASTA President and CEO Richard M. Copland, CTC. If the agencies are sued, we intend to take strong action to assist our travel agent members. Agents should keep ASTA apprised of any communications from the Committee.
On Sept. 25, 2001, Renaissance Cruises ceased operations and since has filed for Chapter 11 reorganization in the U.S. Bankruptcy court for Florida`s Southern District….
The American Society of Travel Agents (ASTA) objected to a move by the committee overseeing the Renaissance Cruises bankruptcy to recall agency commissions on cruises that did not sail.
ASTA last week sent a letter to Gary M. Freedman, Esq., of Tabas, Freedman & Soloff, P.A., of Miami, the counsel for the Official Committee of Unsecured Creditors, stating that ASTA learned you have been writing to various agencies demanding repayment of commissions earned by these agencies on sales procured on behalf of Renaissance Cruises, Inc. … Such a demand is neither supported by the law or the facts and represents an attempt on the part of the Unsecured Creditors Committee to secure for the bankruptcy estate funds to which it is not entitled.
The ASTA letter cites a familiar Common Law principle that an agent is engaged by his principle to find a purchaser ready, willing and able to purchase upon the seller`s terms. Having done so, absent some agreement to the contrary, the agent has done all that is required of it and has fully earned its commission, regardless of the outcome of the sale. ASTA took strong issue with the firm communicating with lay people, citing bankruptcy code sections and demanding the repayment of the commissions. The letter was copied to Roberto Angueira, Assistant U.S. Trustee in Miami.
We are awaiting a response from Mr. Freedman, said ASTA President and CEO Richard M. Copland, CTC. If the agencies are sued, we intend to take strong action to assist our travel agent members. Agents should keep ASTA apprised of any communications from the Committee.
On Sept. 25, 2001, Renaissance Cruises ceased operations and since has filed for Chapter 11 reorganization in the U.S. Bankruptcy court for Florida`s Southern District.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
