An international drama is playing out in courtrooms across the world, with the most recent setting the United States District Court in Delaware. In addition to the captivating cast of characters—including titans of the financial and hospitality worlds—and exotic subject matter—the stewardship of a historic hotel in Casablanca, Morocco—this still-unfolding tale is, according to some, poised to potentially recast the rules of alter ego and agency liability in ways that could significantly impact the hospitality industry and beyond.

In this article, we discuss and analyze this decade-old dispute and consider steps hospitality industry stakeholders can take to protect against unforeseen liability due to the actions of corporate affiliates.