Bloomberry Resorts and Hotels Inc. (BRHI) will contest the recent ruling of the Singapore court junking its and unit Sureste Properties Inc.’s (SPI) petition to set aside a $296.6 million or P14.83-billion arbitral award in a dispute that favored former partner Global Gaming Philippines LLC.
The Singapore Court of Appeal issued a decision dated 4 October that denied the appeal of SPI and BRHI against a decision of the Singapore High Court dated 29 May 2020 denying their petition to set aside a ruling of the Arbitration Tribunal in favor of the local unit of William Weidner’s Las Vegas-based casino investment firm.
Weidner served as president and chief operating officer of Las Vegas Sands for 15 years.
In a report to the stock market yesterday, BRHI said it along with its unit SPI will oppose the enforcement of the arbitral award based on applicable Philippine law “in the event that GGAM will file an action… in the Philippines where the assets and business of BRHI and SPI are located.”
Bloomberry chair Enrique Razon Jr branded the move of GGAM in different courts as “shameless forum shopping and an attempt to enforce an arbitral award.”
GGAM also filed a lawsuit against Razon in the United States for terminating the casino deal.
Bloomberry severed its ties with the Las Vegas-based firm allegedly due to a “material breach” of their agreement.
“GGAM has not spent any material time in attending to the management of Solaire and has failed to perform its obligations and deliverables under the management services agreement,” Razon had said.
Shameless forum shopping
In another bourse filing on 31 March, Bloomberry said GGAM is engaged in shameless forum shopping and attempt to enforce an arbitral award against those who are not a party to the arbitration.
Bloomberry, owner and operator of Manila’s Solaire Resort & Casino, argued that the arbitral award can only be enforced by a local court.
A termination of the Management Services Agreement was signed in 2011, just six months after the March 2013 opening of Solaire.
Under the terms of the agreement, GGAM was paid $175,000 per month for technical services related to Solaire’s design, planning, layout and construction and employee recruitment services.
Bloomberry maintained the arbitral award is not “self-executing and must be enforced through the court of the jurisdiction where it is to be enforced” referring to the Philippines. GGAM then sought the enforcement of the award through the US courts.
The Regional Trial Court of Makati City had issued writs of attachment and preliminary injunction against GGAM’s effort to sell the shares it holds in Bloomberry while the arbitration is pending.