Seven members of the American Society of Travel Agents (ASTA) filed a class action lawsuit on July 25, against …
Seven members of the American Society of Travel Agents (ASTA) filed a class action lawsuit on July 25, against the bankruptcy estate of Renaissance Cruises, challenging the trustee`s move to recall agency commissions on cruises that did not sail because of Renaissance`s default.
The lawsuit was filed with the U.S. Bankruptcy Court in the Southern District of Florida by ASTA agents Accent on Travel, Towson, MD; Crossroads Travel and Cruise, LLC, Olathe, KS; Crossways Travel, Inc., Woodbury, NY; Destinations Unlimited, Inc., Florence, KY; Duluth Travel Agency, Duluth, MN; McGehee Travel Agency, Inc., Mandeville, LA; and Brentwood Travel, St. Louis; against the Liquidating Trustee.
ASTA is doing the right thing for travel agents by supporting this lawsuit, said ASTA President and CEO Richard M. Copland, CTC. We think the Court will agree with our claim that travel agents earn commissions when they deliver to a cruise line a client who is ready, willing and able to sail. The subsequent failure of a cruise line to deliver the goods doesn`t change the fact that the travel agent has performed her job and it should not affect whether she receives payment.
Renaissance Cruises ceased operations on Sept. 25, 2001, and filed for bankruptcy protection. ASTA sent a letter on May 20, 2002, to Renaissance`s counsel advising that the Society would take strong action if the cruise line persisted in its attempt to collect commissions paid to agents for cruises the company itself failed to provide.
The ASTA member plaintiffs have asked the Bankruptcy Court for an emergency hearing on their motion to halt all further adversary proceedings by the Renaissance trustee against agents for recall of commissions on un-sailed cruises. Attorneys for the ASTA members include Hunton and Williams LLP of Miami, with Burton J. Rubin, ASTA general counsel, and Paul M. Ruden, Esq., ASTA senior vice president of legal and industry affairs.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
