ORLANDO, Fla. -- Charging breach of contract and fraud in a deal to build a hotel and convention center complex, a New York developer is suing Walt Disney World and its parent corporation for more than $1.3 billion.
Tishman Realty & Construction Co. alleges in the lawsuit that Disney plans to renege on promised privileged status for the developer's $265 million complex at Walt Disney World by giving Marriott Corp. approval for a similar project.
The suit says Tishman now will not proceed with the development.
Tishman charges Disney is 'contemplating or negotiating' to give Marriott the go-ahead to build a convention center, a convention hotel and up to 20,000 moderately priced rooms on theme park property.
The developer further alleges Disney plans to make Marriott's 1,500-room Orlando World Center, which is under construction near Epcot Center and would be the only facility to rival the Tishman complex, one of the official Disney hotels.
Official hotels are connected to the Disney reservation system, which refers guests to other area hotels only after Disney hotels are full. The Tishman complex, which was to include a Sheraton and a Holiday Inn Crowne Plaza, was to have been part of the reservation network.
The suit filed Tuesday in Orange County Circuit Court seeks $371 million in compensatory damages and more than $1 billion in punitive damages from the theme park and Walt Disney Productions Inc.
The suit says Tishman and its partners have declined other business opportunities while planning the Disney project and, since 1981, have invested large amounts of money and time in the convention complex.
In seeking punitive damages, the suit charges Disney with making false promises both in writing and by telephone. One such promise, according to the suit, was that Disney would not allow other hotel or convention space to be built on its property for 10 years.
Tishman is joined in the suit by project partners Metropolitan Life Insurance Co., Aiko Corp. of Japan and Sheratorn Corp. Holiday Corp., which was to have managed one of the hotels, is not party to the suit.
