Naomi Angel
Naomi Angel
Howe and Hutton
“Top 10 legal issues you should be concerned about.”
Attorney Naomi Angel doesn’t beat around the bush when she talks to meeting planners about contracts.
“My job is to make you paranoid,” she told her audience at the Small Market Meetings Conference. “So if you walk out of here feeling uptight, I’ve done my job.”
Here is Angel’s list of the top 10 issues she sees with contracts in the meetings industry; the order doesn’t necessarily denote the item’s importance, she said.
10. Not reading the boilerplate or fine print. “Standard” language shouldn’t be overlooked. Angel pointed out that before Sept. 11, 2001, force majeure was a boilerplate item that got little to no attention. “Notice” is another item often overlooked. A contract should spell out exactly who is to receive notice of any changes; for example, a cancellation. The manner in which notice is to be delivered must also be specified.
9. Not communicating bad news. There is currently much potential for upheaval in the hotel industry. Two-thirds of hotel deals in the last five years are underwater, Angel said. At the same time, occupancy rates have risen to levels not seen since 2007, and the pace of bookings has accelerated. Construction and renovation projects that were put on hold during the recession are being pulled off the shelf. All of those factors make it even more important for planners and industry suppliers to keep one another informed of good news and bad that might affect a contracted piece of business.
8. Not having current policies. As the world changes, so should contracts. A decade ago, social media wasn’t even a term; now, organizations should have carefully constructed policies that deal with that workplace issue. An organization should clearly state that discrimination and harassment are not tolerated, both in its contracts and in its conference materials, such as registration forms. “Then you can say that everyone was put on notice about what would and would not be tolerated,” Angel said.
7. Working off marked-up contracts. If you do have a marked-up copy, make sure each revision is initialed by both parties, and make sure all the pages of the contract are in the final document.
6. Not asking participants to sign a release. If you are taking a group white-water rafting, for example, don’t rely on the release that the white-water rafting company will have everyone sign. Have your own release and have participants sign it.
5. Not making requests during negotiations. “Shame on you if you don’t ask for what you need the most. Comps are a great place to negotiate.”
4. Not consulting your legal eagle (lawyer) before the contract is signed.
3. Not planning for the “what ifs.”
2. Negotiating noneconomic items, like indemnification and insurance. Indemnification should be mutual unless the issue is alcohol. Alcohol is not the group’s issue. Although everyone will be sued, it is the hotel’s responsibility. Angel provided samples of a mutual indemnification clause and an alcohol indemnification clause that could be added to contracts as needed.
1. Working without a contract. “We don’t do it on handshakes anymore,” Angel said.
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