A week before the trial was to begin, the Trustee in the Renaissance Cruise Line bankruptcy case has dropped his lawsuits against four members of the American Society of Travel Agents…
A week before the trial was to begin, the Trustee in the Renaissance Cruise Line bankruptcy case has dropped his lawsuits against four members of the American Society of Travel Agents (ASTA). The four ASTA members were among hundreds of travel agencies sued by the Trustee in his effort to collect from each an average of just over $2,000 in commissions.
In dismissing, with prejudice, his suits against Brentwood Travel Service (St. Louis), Crossroads Travel (Olathe, Kan.), Destinations Unlimited, Inc. (Florence, Ky.), and Duluth (Minn.) Travel Agency, the Trustee has ended his attempt to recall commissions these agencies were paid by Renaissance for selling cruises that ultimately did not sail because the cruise line ceased operations.
“ASTA fought the good fight for its members and won—our adversary folded,” said ASTA President and CEO Kathryn W. Sudeikis, CTC. “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. Travel agents are represented by ASTA, a strong association that will take on the kinds of legal challenges no agency could undertake on its own.”
ASTA opposed the Trustee’s actions by supporting a class action brought by seven ASTA member agencies (including the four whose suits were dismissed today) for the purpose of halting the recall suits against all travel agencies being sued on the same grounds. ASTA and the ASTA Litigation Center, Inc., the public interest law firm serving the travel agency industry, defended those travel agencies even after a bankruptcy judge declined to allow the class action to go forward.
Brentwood Travel Service, Crossroads Travel, Destinations Unlimited, Inc., and Duluth Travel Agency were those remaining from the original group of seven who had not previously settled. This dismissal with prejudice bars the Trustee from any further suit against these agencies on the same grounds.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
