D.C. Restaurant Sues New Trump Hotel, Alleging Unfair Competition

[EC]

The Trump International Hotel in Washington D.C.’s historic Old Post Office opened last fall, only weeks before its namesake was elected President. With the White House and its primary occupant only a few blocks away, one D.C. restaurant claims the new hotel has an unfair advantage.

In a complaint [PDF] filed today in D.C. Cuperior Court, the owners of the Cork Wine Bar make the case that the restaurant is a direct competitor to the eatery inside Trump’s Old Post Office hotel, and that Trump owning the hotel while being President creates an illegally un-level playing field.

Cork Wine Bar defines itself in the suit as a “top 100” restaurant in the city and claims to be a “top 10 wine bar” in the United States, offering more than 50 varieties by the glass and 250 by the bottle.

“A significant portion of Cork’s business involves serving meals and alcoholic beverages, and hosting events, often for large groups of individuals and organizations, including many from outside the United States, who have business of one kind or another with — including seeking to influence the policies of — the United States Government and its elected officials,” the complaint says.

That much is true of a whole lot of the higher-end restaurants all through Washington, D.C. But Cork has the problem of being about a mile and a half down the road from the Old Post Office, which since 2013 has been leased to Donald Trump for redevelopment. In 2016, the Trump International Hotel opened on the property, and includes the BLT Prime steakhouse restaurant.

That’s a problem, say Cork’s owners, because anyone looking to book an influence-generating event knows perfectly well which venue the President of the United States — and by extension, those who work for him — is going to prefer or insist on, and it won’t be theirs.

“Because the Hotel and its restaurants and shops are new and because of its location, the Hotel and its restaurants immediately began to compete with Cork for business, just as any new hotel and restaurant in that location would compete,” the complaint continues. But the day after the 2016 election — Nov. 9 — “the competition between the Hotel and Cork began to favor the Hotel much more than before the election.”

Read more: https://consumerist.com/2017/03/09/d-c-restaurant-sues-new-trump-hotel-alleging-unfair-competition/

[ABX]

I thought Trump made a yuge deal out of divesting himself of any personal business interests including posing in front of stacks of folders he claimed was the paperwork to take all his business interests out of his name.



He didn't lie about that did he?

[truth_seeker]

I missed the section in our Constitution, preventing elected officer from owning things, which provide services that people want and at for.

I also missed the section, which gives basis for anther business to expect protection from competition, and insures "fair."

[Right_in_Virginia]

That’s a problem, say Cork’s owners, because anyone looking to book an influence-generating event knows perfectly well which venue the President of the United States — and by extension, those who work for him — is going to prefer or insist on, and it won’t be theirs.

Cork is a Wine Bar in Dupont Circle, almost 2 miles from Trump Int'l Hotel ... translating into 15-20 minutes by car.  Cork is a nice wine tasting boutique best known for their wine classes---and cheeses, which are available in their market.  They also have a small, but good dinner menu making it a nice place to visit if you're in the area.

They are no more a competitor of Trump Int'l than they are of the Ritz-Carlton, the Hay-Adams or the Four Seasons Hotels.  These hotels draw the "influence-generating events".  Always have, always will.

But I'm sure this has helped Cork's name recognition.

[truth_seeker]

Cork is a Wine Bar in Dupont Circle, almost 2 miles from Trump Int'l Hotel ... translating into 15-20 minutes by car.  Cork is a nice wine tasting boutique best known for their wine classes---and cheeses, which are available in their market.  They also have a small, but good dinner menu making it a nice place to visit if you're in the area.

They are no more a competitor of Trump Int'l than they are of the Ritz-Carlton, the Hay-Adams or the Four Seasons Hotels.  These hotels draw the "influence-generating events".  Always have, always will.

But I'm sure this has helped Cork's name recognition.

That is fascinating. I could argue that the existence of several fine dining places, helps them all.

That is one of the theories and justifications for shopping malls.

That is the opposite of the "exclusive" clause in a commercial lease.

IOW do two or more shoe stores in a mall help each other, or is only one better off if protected from competition?

The offer of an "exclusive" to induce tenants was/is frequently used. My wife and I owned a store, with an exclusive, but our landlord wouldn't enforce it.

We consulted attorneys. They said we had a case against the landlord with whom we had a lease contract, but not against the other business.

We did not renew the lease. Our specialty merchandise were becoming offered in bigger stores.