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Beyond the Briefs
Barely Briefs
Published Thursday, 05-Nov-2009 in issue 1141
100 million reasons to ban dodge ball
Earlier this year a California school district settled a claim for $100 million because a student got beamed in the head during a dodge ball game. Not only did the impact of the ball cause injury, but the student fell backwards and suffered traumatic brain injury.
The New York Times reported last week that high school students incur some 400,000 head injuries a year, most related to football. Often the victims of such injuries are openly gay and lesbian students, as games such as dodge ball give bullies the opportunity to rifle rubber balls into their heads or extremities.
The journal Pediatrics reported in September student injuries in gym classes increased 150 percent from 1997 to 2007, and as schools increase class sizes to save money, gym classes are often too large for adequate supervision.
Assemblymember Lori Saldana’s staff is considering legislation that would ban school activities that produce needless injury.
Assemblymember Lori Saldaña’s staff is considering legislation that would ban school activities that produce needless injury.
Manchester boycott moves to Wall Street?
There is as yet no word yet on whether the prospectus for Hyatt Hotels Corp. will report on the financial effect of the boycott on San Diego’s Manchester Grand Hyatt. However, if it doesn’t, the failure to disclose that one of its premiere properties is losing money due to a boycott could constitute securities fraud when the company goes public.
As the Wall Street Journal reported last week, the family that owns the hotel franchise is selling shares in an attempt to raise $1 billion to offset losses created by dwindling revenues. The Los Angeles Daily Journal reported last week that some 300 hotels have defaulted on loans and are either in or heading towards foreclosure, and the Hyatt is no exception. In the first half of 2009, it lost $36 million on revenue of $1.64 billion, compared with a year-earlier profit of $173 million on revenue of $2.01 billion, Dow Jones Newswire reports.
What portion of the loss can be attributed to the boycott is unknown; however, some estimate it’s in the millions. Hyatt Hotels Corp. should have severed its ties to Doug Manchester long ago, as he, arguably, may have breached fiduciary duty to the franchisor and the other franchisees: Manchester’s funding of Proposition 8 not only helped curb civil rights for gay people but also eliminated lucrative revenue streams from GLBT functions and guests as well as GLBT-friendly organizations that choose to boycott the hotel.
Robert DeKoven is a professor at California Western School of Law.
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