Rainbow Travel Ser

Rainbow Travel Serv., Inc. v. Hilton Hotels Corp., 896 F.2d 1233, 1240-41 (10th Cir. 1990) & Onyx Acceptance Corp. v. Trump Hotel & Casino Resorts, Inc., 950 A.2d 907 (2008)

What I decided to do with the extra credit is to choose two different cases related to the breach of contracts that have slightly different decisions. I've tried to find cases that have totally opposite decisions but I couldn't find it. Rainbow Travel Serv., Inc. v. Hilton Hotels Corp., 896 F.2d 1233, 1240-41 (10th Cir. 1990) and Onyx Acceptance Corp. v. Trump Hotel & Casino Resorts, Inc.,950 A.2d 907 (2008) are two cases related to breach of contracts. They have similar stories yet different verdict at the end due to the situation. They both involved breach of contract, overbooking, common law fraud, and damage to goodwill.

Rainbow Travel Serv., Inc. v. Hilton Hotels Corp., 896 F.2d 1233, 1240-41 (10th Cir. 1990). In the spring of 1986, Rainbow organization began to sell tour packages for Oklahoma football versus University of Miami football game on September 26, 1986 in Miami. Rainbow contacted the Fontainebleau Hilton which is operated by Hilton Hotels, Inc. After contact, the Fontainebleau and Rainbow signed two contracts: the first one is to reserve one hundred and five rooms for Rainbow on the weekend of September 27 and the second one is to provided that forty five rooms were to be reserved for Rainbow on September 26, 1986. In June, the Fontainebleau confirmed Rainbow's reservation by mail and request for pre-payment. Rainbow sent partial payment of over $6,000. In August, Rainbow paid the remaining payment with checks. Rainbow's president, A.J. Musgrove, went to check on everything on September 24, 1986. Musgrove met with the hotel's representative, Livia Cohen, on September 24, twice on 26. Ms. Cohen had ensured Mr. Musgrove that all of the reserved rooms would be available. However, on September 26, the Rainbow groups were told by Hilton representatives that no rooms were available so they scheduled them to be staying in the hotel that is ten blocks away from the Fontainebleau.

Rainbow sued Hilton for breach of contract, common law fraud, and damage of Rainbow's goodwill. Rainbow showed evidence that Hilton accepted reservations for more rooms than were available. Hilton argued that their policy was to book up to one hundred and fifteen percent of its capacity based on their historic fifteen percent "no show" rate for guests with reservations. Hilton believes that this policy allowed the hotel to honor over the course of the year. However, Rainbow showed evidences that under this policy; Hilton would actually had to dishonor the hotel. Additionally, Ms. Cohen and the hotel had knowledge of overbooking the room but never informed Mr. Musgrove. Under the circumstantial evidence of the awareness of overbooking, the court award $37,500 as compensatory damages to Rainbow.

Onyx Acceptance Corp. v. Trump Hotel & Casino Resorts, Inc.,950 A.2d 907 (2008). In 2001, Onyx planned a holiday party as a reward for its most valued customers in New Jersey and Pennsylvania. The part was planned for December 1 at Trump Hotel & Casino Resorts in Atlantic City. Onyx prepaid $29,000 for sixty hotel rooms and a banquet. Trump failed to fulfill the contract. Trump overbooked the room on that day but attempted to book rooms for twenty-six's of Onyx guests at different hotel with transportation provided. In the meantime, the banquet proceeded in the Trump Hotel while other guests were still away. In result, the banquet was unsuccessfully.

Onyx sued Trump for breach of contract, common law fraud, damages