Exhibit 99.1
Wolf Haldenstein Adler Freeman&Herz llp
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JOHN L FREEMAN | | founded 1888 | | M. JOSHUA ABER |
EDGAR J. NATHAN, 3rd | | 270 MADISON AVENUE | | CARL R. SLOAN |
CHARLES H. BALLER | | NEW YORK, NY 10016 | | ROBERT B. WEINTRAUB |
DAVID A. RUTTENBERG | | 212-545-4600 | | ROBERT ABRAMS |
DANIEL W. KRASNER | | www.whafh.com | | OF COUNSEL |
FRED T. ISQUITH | | | | ———— |
STUART M. SAFT* | | ———— | | ALAN McDOWELL¨ |
ERIC B. LEVINE | | | | LINDA A. REDLISKY |
JEFFREY G. SMITH† | | | | | | NANCY S. PITKOFSKYo |
FRANCIS M. GREGOREK† | | | | | | MICHAEL C. MULéo |
MARY JANE FAIT† | | SYMPHONY TOWERS | | 625 NORTH FLAGLER DRIVE | | RACHELE R. RICKERTu |
ROBERT D. STEELE | | 750 B STREET - SUITE 2770 | | 9TH FLOOR | | THOMAS H. BURT |
MARK C. SILVERSTEIN | | SAN DIEGO, CA 92101 | | WEST PALM BEACH, FL 33401 | | JILL H. BLUMBERGo |
ELI D. GREENBERG | | 619-239-4599 | | 561-833-1776 | | SCOTT J. FARRELLo |
PETER C. HARRAR | | | | | | KATE M. McGUIRE |
LAWRENCE P. KOLKER | | | | | | LAUREN P. KRAUS° |
MARK C. RIFKINu | | WOLF HALDENSTEIN ADLER FREEMAN & HERZ LLC | | GUSTAVO BRUCKNERo |
JEFFREY M. SCHWARTZ | | 55 WEST MONROE STREET, SUITE 1111 | | STACEY T. KELLYo |
MICHAEL JAFFE† | | CHICAGO, IL 60603 | | RONNIE BRONSTEIN |
MARIA I. BELTRANI* | | 312-984-0000 | | PAULETTE S. FOXo |
MICHAEL E. FLEISS | | | | | | MICHAEL J. MISKE |
BETSY C. MANIFOLD† | | | | | | TAMARA E. GROSS |
ALEXANDER H. SCHMIDTo | | DIRECT DIAL 212-545-4672 | | CHRISTOPHER S. HINTON |
JEFFREY S. REICH* | | FACSIMILE 212-545-4677 | | JOSHUA BERENGARTEN |
GREGORY M. NESPOLE | | Kolker@whafh.com | | INGRID C. MANEVITZo |
DAVID L. WALES | | | | | | MATTHEW M. GUINEY |
FRANCIS A. BOTTINI, JR.Ú | | | | | | MARTHA J. BROSIUS |
DEMET BASARo | | | | | | AYA BOUCHEDID |
ADAM J. LEVITT‡ | | May 19, 2005 | | JULIE F. CORBOÚ |
LISA A. LOWENTHAL | | | | | | ———— |
STEVEN D. SLADKUS | | | | | | also admitted *fl, †ca,onj,uil only admitted Úca, ‡il,¨va,unj & pa |
VIA E-MAIL and
FEDERAL EXPRESS
Ms. Jennifer R. Johnson
Case Manager
American Arbitration Association
6795 North Palm Ave., 2nd Floor
Fresno, CA 93704
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Re: | | Demand for Arbitration; request for preliminary hearing |
Dear Ms. Johnson:
This is a demand for arbitration in a large, complex commercial dispute, in which class arbitration is sought. In addition, we will request that this arbitration be consolidated with the pending arbitration entitledWestin Realty Corp. et al. v. Kalmia Investors LLC v. Starwood Hotels & Resorts Worldwide, Inc., et al,Case No. 75 180 00399 04JRJ (“Westin Realty”), in which you are the Case Administrator.
This demand is directed to each of the counterclaim and third-party respondents (collectively, “Respondents”) inWestin Realty,namely, Westin Realty Corp., Westin Hotels Limited Partnership, Starwood Hotels & Resorts Worldwide, Inc., 909 North Michigan Avenue Corporation, the Westin Chicago Limited Partnership, the Westin St. Francis Limited Partnership, and the St. Francis Hotel Corporation. Each of these parties is represented by William A. Brewer, III, Esq. of the law firm of Bickel & Brewer, located at 4800 Bank One
Wolf Haldenstein Adler Freeman&Herz llp
Ms. Jennifer R. Johnson
May 19, 2005
Page 2
Center, 1717 Main Street, Dallas, Texas 75201, telephone: 214-653-4000 and fax: 214-653-1015.
Claimants, Mr. Ralph Silver and Dr. Warren Heller, limited partners of Westin Hotels Limited Partnership (the “Partnership”), hereby demand arbitration under the Partnership’s Agreement of Limited Partnership, the arbitration provision of which (the “Arbitration Agreement”) is attached hereto.
Claimants, on behalf of the proposed Class of all the limited partners of the Partnership, allege that the Respondents Westin Realty Corp., Starwood Resorts & Hotels Worldwide, Inc., 909 North Michigan Avenue Corporation and St. Francis Hotel Corporation (collectively, “Starwood”), in breach of their fiduciary and contractual duties, have engaged in a pattern of conduct that was designed to, and did, inflate the expenses charged to the hotels owned by the Partnership and managed by Starwood and engage in other improper conduct which reduced the cash flow and other proceeds to the Partnership and the Class and increased the cash flow to Starwood. This has damaged Claimants and the Class by depressing the returns on their investments in the Partnership (which is presently in liquidation). It is not yet practicable to estimate damages with any reasonable certainty; however, Claimants believe that the damages to the Class exceed $10 million and that the relief sought will significantly exceed that amount.
This is not a consumer dispute (except to the extent that investors may be deemed consumers under certain laws and regulations). This dispute does not arise out of an employment relationship (except to the extent that the management of the Partnership’s hotels involves certain employment relationships).
Pursuant to the Arbitration Agreement, Claimants request a hearing in Seattle, Washington. This demand and the Arbitration Agreement are hereby being filed. Claimants request that the American Arbitration Association commence administration of this arbitration. Claimants request that this arbitration proceed pursuant to the AAA Rules for Arbitrations in Large, Complex Commercial Disputes and pursuant to the AAA Supplementary Rules for Class Arbitrations (except as those rules may be varied to facilitate consolidation with theWestin Realtymatter).
Claimants agree to arbitrate this matter before the three arbitrators already chosen in theWestin Realtymatter. We request that a preliminary hearing be scheduled by telephone at the arbitrators’ and counsel’s earliest convenience to discuss the administration of the various procedural issues raised by the commencement of this matter.
I am enclosing by federal express a check in the amount of $3,250 pursuant to Class Arbitration Rule 11.
Wolf Haldenstein Adler Freeman&Herz llp
Ms. Jennifer R. Johnson
May 19, 2005
Page 3
Thank you for your attention.
Very truly yours,

Lawrence P. Kolker
LPK:jg\403043
Enclosures
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cc: | | Ms. Noreen L. Garcia | | |
| | (e-mail: garcian@adr.org) | | |
| | Thomas J. Brewer, Esq. | | |
| | (e-mail: tjbrewer@qwest.net) | | |
| | Hon. Richard P. Guy | | |
| | (e-mail: guyr002@hawaii.rr.com) | | |
| | Lawrence R. Mills, Esq. | | |
| | (e-mail: lmills@mms-seattle.com) | | |
| | William A. Brewer, III, Esq. | | |
| | (e-mail: wab@bickelbrewer. com) | | |
| | Cecelia Fanelli, Esq. | | |
| | (e-mail: cfanelli@stroock.com) | | |