Estate of Calderwood - Ace Group International dispute

Jim McDermott and Ciaran Connelly represented the Estate of Alex Calderwood in a dispute over control of Ace Group International LLC (“AGI”)—the company that runs Ace hotels and controls the “Ace” brand.

Alex Calderwood founded the Ace hotels. He died suddenly in November 2013. At the time of his death, Alex owned just under 52% of AGI. Following Alex’s death, a minority investor in AGI—Ecoplace LLC—took control of AGI. Litigation ensued in New York Supreme Court. After years of litigation, we were able to negotiate a favorable eight-figure settlement despite the New York trial and appellate court’s finding that the AGI operating agreement provided Alex with no protection in the event of Alex’s death or disability. Alex’s Estate also pursued a legal malpractice claim against Davis Wright Tremaine LLP (DWT) and one of its partners, Matthew LeMaster, for failing to protect Alex’s interests when LeMaster and DWT negotiated the AGI operating agreement. Alex’s estate sought damages in the amount of the shortfall between the amount we obtained for Alex’s estate in settlement and the value of Alex’s 52% interest in AGI if LeMaster and DWT had secured appropriate protections. We served as co-counsel in that case. A King County, Washington jury returned a defense verdict after a multi-week Zoom trial.