Housing And Civil Enforcement Cases Documents

IN THE UNITED STATES DISTRICT COURT
FOR THE MIDDLE DISTRICT OF FLORIDA
ORLANDO DIVISION

DANTE GILLIAM,
JAMIE MORRISON,
LATOYA STRAUGHN,
NAPOLEON BERRIAN, and
MARK SIMMONDS,
individually and on behalf of
all similarly situated persons,
     Plaintiffs,

v.

C.A. No. 99-596-CIV-ORL-22C

HBE CORPORATION d/b/a,
ADAM'S MARK HOTELS and
HBE-FLORIDA CORPORATION,
     Defendants.

___________________________________

STATE OF FLORIDA
     Plaintiff,

v.

C.A. No. 99-596-CIV-ORL-22C

HBE CORPORATION d/b/a
ADAM'S MARK HOTELS, HBE-FLORIDA
CORPORATION, and FREDERICK
S. KUMMER JR.,
     Defendants.

___________________________________

SETTLEMENT DECREE
  1. INTRODUCTION

    On May 20, 1999, Plaintiffs Dante Gilliam, Jamie Morrison, Latoya Straughn, Napoleon Berrian, and Mark Simmonds (hereafter "the Private Plaintiffs") filed a complaint against defendant HBE Corporation d/b/a Adam's Mark Hotels (hereafter "HBE" or "defendant") seeking to represent a class of black persons who experienced race discrimination at the Daytona Beach Adam's Mark Hotel (hereafter "the DBAMH") during Black College Reunion (hereafter "BCR") in violation of Title II of the Civil Rights Act of 1964, 42 U.S.C. §2000a et seq. and 42 U.S.C. §1981. On December 3, 1999, the Private Plaintiffs filed their Second Amended Complaint, which added HBE-Florida Corporation (hereinafter "HBE-Florida") as a defendant.

    On December 16, 1999, the Florida Attorney General's Office ("State of Florida") filed a complaint against HBE, HBE-Florida, and Frederick S. Kummer, Jr., the Chief Executive Officer of HBE, and filed an unopposed Motion to Intervene in Private Plaintiffs' action asserting pendent state claims under Florida's Unfair and Deceptive Trade Practices Act, Chapter 501, Part II. On January 18, 2000, the Court granted the State of Florida's Motion to Intervene.

    On December 16, 1999, the United States filed a complaint against defendant HBE Corporation d/b/a Adam's Mark Hotels, alleging violations of Title II of the Civil Rights Act of 1964, 42 U.S.C §2000a et seq. United States v. HBE Corporation d/b/a Adam's Mark Hotels, 99-1604-CIV-ORL-22C.

    In September 1999, all plaintiff parties and defendants voluntarily engaged in mediation for the purpose of resolving all of the parties' claims. This mediation was unsuccessful. However, shortly after the United States and the State of Florida filed its Complaint and Motion to Intervene, respectively, the parties renewed settlement discussions and reached resolution of all parties' claims. The parties fully expect interactive coordination and collaboration regarding the implementation of the injunctive provisions. Accordingly, the injunctive provisions for the United States' Settlement Decree in Civil Action Number 99-1604-CIV-ORL-22C and the Private Plaintiffs' and the State of Florida's Settlement Decree are nearly identical. The Private Plaintiffs' and State of Florida's Decree resolves additional claims raised in that case. The Decrees assign monitoring and compliance authority to the United States and the State of Florida. Such cooperative efforts shall avoid unnecessary duplication of efforts and unreasonable expense to defendants.

    Defendant HBE is a privately held Delaware corporation with its principal place of business in St. Louis, Missouri. Defendant HBE-Florida is a subsidiary of HBE and is a privately held Florida corporation with its principal place of business in St. Louis, Missouri.

    Defendants have at all times denied and continue to deny the allegations asserted above. The parties have agreed to resolve these actions voluntarily. The parties have agreed to the following terms upon which these actions will be fully and finally resolved and, as indicated by the signature of counsel at the end of this document, have consented to the entry of this Agreement by the Court.

    The parties agree to abide by all of the terms of this Agreement in good faith and to support it fully, and shall use their best efforts to defend this Agreement from any legal challenge, whether by appeal or collateral attack.

  2. PURPOSES OF DECREE

    The parties have entered into this Decree for the following purposes:

    1. To ensure that African American guests and visitors of Adam's Mark Hotels are provided equal treatment, service, and access to places of public accommodation at the hotels regardless of their race or color;
    2. To ensure that African Americans are provided with equal treatment regardless of their race or color while attending Special Events or Group Events at the Adam's Mark Hotels;
    3. To provide appropriate injunctive relief in furtherance of the public interest and to remedy the claims of the Settlement Class, the United States, and the State of Florida;
    4. To create an expedited procedure for distributing a monetary settlement to eligible members of the Settlement Class and resolve the monetary claims of the State of Florida; and
    5. To provide finality to the resolution of all claims and defenses asserted in this action.
  3. DEFINITIONS
    1. "African American" - shall mean all black persons.
    2. "Agent" -- shall include hourly and salaried employees, independent contractors, and security personnel.
    3. "Black College Reunion" or "BCR" - refers to an event that started in 1984 as a homecoming for students and alumni of two historically black colleges, Bethune-Cookman College and Florida A&M University. The event, which is attended primarily by black persons, has been held annually since 1984 in Daytona Beach, Florida. This past year, BCR was held over the April 9-11, 1999 weekend.
    4. "Class Counsel" - shall refer to Burr & Smith, LLP; Relman & Associates; the Washington Lawyer's Committee for Civil Rights & Urban Affairs; the General Counsel's Office of the National Association for the Advancement of Colored Persons; and Melehy & Melehy, LLC. Sam J. Smith of Burr & Smith and John P. Relman of Relman & Associates are designated as co-lead class counsel.
    5. "Complaint" - shall include any oral or written, formal or informal complaint, to any administrative, judicial or official body, including calls to the HBE toll-free complaint line, or to any officer, employee, or agent of HBE.
    6. "Effective Date" means either: (1) the date upon which the time expires for filing of a direct appeal from the Court's Final Approval of the Decree without the filing of a notice of appeal, or (2) if a timely direct appeal is filed, the date upon which that appeal is finally resolved (including any requests for rehearing and/or petitions for certiorari) resulting in final judicial approval of the Settlement Decree.
    7. "Final Approval Date" - shall refer to the date upon which the District Court gives final approval of this Decree, after having determined that it is fair, adequate, and reasonable to the Class as a whole, and after (1) notice to the Settlement Class, (2) an opportunity for putative Settlement Class members to opt out of the Settlement Class with respect to monetary relief, (3) an opportunity for putative Settlement Class members to submit timely objections to the Decree, (4) appropriate discovery of the specifics of any such timely objections, and (5) a hearing on the fairness of the settlement.
    8. "Group Events" - shall include any event at an Adams Mark Hotel where the sponsoring group makes reservations with the hotel and/or where individual guests or patrons make reservations at the group rate and as part of the group event.
    9. "HBE" - shall refer to the Adam's Mark Hotel chain.
    10. "Management-Level Personnel" - shall include corporate officers, corporate directors, executives, general managers, regional managers, directors, managers of restaurants, bars, clubs, and lounges, or any other individuals with management or supervisory responsibilities employed by HBE or its subsidiaries.
    11. "Non-managerial Employees" - shall include hourly employees and any other persons employed by HBE or its subsidiaries who do not fall within the definition of Management-Level Personnel described above.
    12. "Parties" or "party"- Unless otherwise specified, shall refer to the United States, State of Florida, Class Counsel, and defendants regarding the injunctive provisions of either the Settlement Decree in United States v. HBE Corporation d/b/a Adam's Mark Hotels, 99-1604-CIV-ORL-22C or the Settlement Decree in Gilliam et al. v. HBE Corporation d/b/a Adam's Mark Hotels, 99-596-CIV-ORL-22C.
    13. "Preliminary Approval Date" - shall refer to the date upon which the District Court preliminarily approves the decree for purposes of providing notice to the Settlement Class.
    14. "Private Plaintiffs" - shall mean Dante Gilliam, Jamie Morrison, Latoya Straughn, Napoleon Berrian, and Mark Simmonds.
    15. "Public Accommodations" - shall include hotels, restaur-ants, bars, clubs, lounges, and all facilities contained therein, which are held open to the public.
    16. "Special Event" - shall include events that take place only once a year or at similar intervals where the guests are generally transient including, but not limited to, events such as BCR, Bike Week, Spring Break, Biketoberfest, Daytona 500, Pepsi 400, and the Rolex 24-Hour Race.
  4. JURISDICTION, SCOPE, AND TERM OF DECREE
    1. Jurisdiction

      The parties stipulate and the Court finds that: (1) Adam's Mark Hotels are places of public accommodation within the meaning of 42 U.S.C. § 2000a(b)(1); (2) HBE is engaged in trade and commerce within the meaning of Section 501.203(8), Florida Statutes (1999); (3) this Court has personal jurisdiction over defendants for purposes of this action and jurisdiction over this action pursuant to 42 U.S.C. § 2000a-6 and 28 U.S.C. §§ 1331, 1343 and 1345.

    2. Scope

      All provisions of this Decree shall apply to HBE, its subsidiaries, officers, employees, agents, assigns, successors in interest in the ownership and/or operation of hotels doing business as Adam's Mark Hotels, and anyone acting in whole or in part under the direction of HBE or any HBE subsidiaries in connection with the treatment and/or service of customers in Adam's Mark Hotels.

    3. Term

      The injunctive provisions of this Decree shall be effective

      immediately upon the Preliminary Approval Date, and shall remain in effect for four (4) years from the Preliminary Approval Date. However, at the end of the third year, HBE may apply to the Court for an order dismissing the case. The United States and the State of Florida shall retain the right to oppose defendants' application for dismissal if they contend that HBE has failed to comply with any provision of this Decree. The Court may determine that dismissal of the case is appropriate based upon satisfactory compliance by HBE with the terms, provisions, and purposes of the Decree.

  5. ACTS AFTER COURT APPROVAL

    The provisions of this Agreement are not intended to eliminate or terminate any rights otherwise available to plaintiff parties for acts by defendants, their subsidiaries, directors, officers, agents, or employees, occurring after the date the Court preliminarily approves this Decree.

  6. NONDISCRIMINATION PROVISIONS
    1. Prohibitory Injunction

      HBE, together with its subsidiaries, officers, employees, agents, assigns, successors in interest in the ownership and/or operation of their respective places of Public Accommodation, and those persons in active concert or participation with them in connection with the treatment and/or service of customers, are HEREBY PERMANENTLY ENJOINED from:

      1. Denying to any person on the basis of race or color the full and equal enjoyment of the goods, services, facilities, privileges, advantages, and accommodations of its hotels, restaurants, bars, clubs, or lounges;
      2. Denying or providing inferior service, or offering less favorable or more restrictive terms and conditions of service, to any person based on race or color;
      3. Representing to any person, based on race or color, that services or the enjoyment of defendants' facilities are not available, when such are in fact so available;
      4. Assigning any person, based on race or color, to a particular hotel room;
      5. Increasing security measures, and the number of security personnel, based on the race or color of the hotel's guests;
      6. Requiring hotel guests to wear wristbands or to undergo other identification procedures based on their race or color;
      7. Excluding or limiting the number of patrons at its hotels, restaurants, bars, clubs, or lounges based on the race or color of the patrons;
      8. Implementing musical formats or other promotional events at its hotels, restaurants, bars, clubs, or lounges designed to exclude or limit the number of black persons patronizing these establishments;
      9. Denying or prohibiting persons from visiting hotel guests based on the race or color of the guests or visitors;
      10. Instructing or encouraging employees or staff members to discourage any person from visiting defendants' facilities or from enjoying the full benefits of defendants' facilities based on that person's race or color;
      11. Charging higher prices for food, beverages, or services based on race or color;
      12. Imposing room rates and methods of payment based on race or color;
      13. Retaliating against any officer, employee or agent for opposing or reporting alleged discrimination in the service and/or treatment of guests or patrons, in violation of applicable law and/or this Decree; and
      14. Engaging in any transaction, practice, or course of conduct which operates as a deceptive or unfair trade practice in violation of Chapter 501, Part II, Florida's Deceptive and Unfair Trade Practices Act.
    2. Nondiscrimination Policies and Procedures

      HBE's policies and procedures regarding customer and group service, including those related to reservations, service of food or beverages, parking services, room assignments, room rates, security deposits, check-in, guest identification, visitation, room maintenance and cleaning, and check-out, shall be applied equally to all customers regardless of their race or color.

      Within 90 days of the entry of this Decree, HBE shall submit to the Compliance Officer(1), the United States, and the State of Florida for review and approval, its revised customer service policies and procedures designed to effectuate the non-discrimination remedial goals of this Decree. Modifications made to these customer service policies during the term of the Decree shall be submitted to the Compliance Officer, the United States, and the State of Florida for review and approval within fifteen days from the date the modification to the policy is proposed.

      The revised customer and group services policies and procedures shall include, but not be limited to:

      1. Customer Service

        HBE shall ensure that all of its hotels employ uniform policies and procedures regarding the treatment of hotel guests regardless of the race or color of each guest. Standard policies and procedures shall address the assignment and reservation of available hotel rooms based on guest preferences. No hotel shall assign rooms, impose room rates, or require particular methods of payment based on the racial characteristics of hotel guests. The standard policies and procedures shall provide for the equal treatment of all patrons at HBE hotels, restaurants, bars, clubs, or lounges, without regard to race or color, with respect to all aspects of operation including, but not limited to, hours of service, cover charges, identification requirements, prepayment requirements, food and alcohol prices, and dress codes, if any.

      2. Group Events

        HBE shall adopt uniform policies and procedures regarding the treatment of hotel guests attending Group Events. Such policies and procedures shall be applied without regard to the race or color of such guests. The Compliance Officer shall be responsible for insuring that adequate records are maintained of the following aspects of each and every Group Event held at an Adam's Mark Hotel: (a) the racial makeup of the majority of the attendees of the Group Event determined by observation by HBE; (b) a description of the event; (c) the date and location of the Group Event; (d) the names of any and all sponsors or other persons primarily responsible for paying for the event; (e) payment and contract terms (i.e. deposits and billing procedures) offered and agreed to by the hotel for the Group Event; (f) the prices charged for food, beverages, and other commodities provided to the attendees; (g) the selection of food, beverages, and other commodities offered to the attendees; (h) room rates, including any and all complementary rooms or discounts offered to the attendees; and (i) rental rates offered to the attendees for meeting or entertainment facilities. The Compliance Officer shall analyze these records on a quarterly basis for the purpose of determining whether there is reason to believe that a predominately African American Group Event has been treated less favorably than a predominately white Group Event at any Adam's Mark Hotel. In the event the Compliance Officer concludes that there has been disparate treatment, HBE shall be given an opportunity to provide the United States and the State of Florida with a response to the Compliance Officer's findings. The United States and the State of Florida shall review the defendants' response for the purpose of determining whether HBE has complied with the terms of the Decree. Upon request, the United States and the State of Florida shall be provided with access to the Group Event records reviewed by the Compliance Officer.

    3. Specific Nondiscrimination Policies Regarding Special Events at Daytona Beach Adam's Mark Hotel ("DBAMH")
      1. The DBAMH shall use its best efforts to provide the same level and type of security for each Special Event. The parties agree that there may be circumstances related to the number of persons anticipated to be present in the hotel during certain Special Events which may require additional security personnel on the hotel premises. In such circumstances, the defendant shall utilize non-uniformed security personnel, including when reasonable police officers and/or deputies, to the greatest extent possible. Where lodging is offered to security personnel during a Special Event, the DBAMH shall use its best efforts to offer lodging to the same number of security personnel during each Special Event.
      2. If the DBAMH decides to enforce a maximum number of occupants per room or limit the number of visitors allowed per room, the hotel shall apply these policies equally to all Special Events and shall disclose such policies to guests before they register or pay any deposits to reserve a room with the hotel. The hotel may not use wristbands to identify guests during any Special Event or charge a fee for a visitor to enter the DBAMH.
      3. If the DBAMH decides to require a damage deposit for any Special Event, the amount of such damage deposit and the procedures used to collect and return this deposit shall be applied equally to all Special Events and such policies shall be disclosed to guests before they register or pay any deposits to reserve a room with the hotel.
      4. If the DBAMH decides to limit access to in-room telephones, mini-bars, or movies or to charge a deposit for the use of these amenities during any Special Events, such limitations shall be applied equally to all Special Events and such policies shall be disclosed to guests before they register or pay any deposits to reserve a room with the hotel.
      5. Valet parking procedures shall be applied in the same manner at the DBAMH for all Special Events. The availability of the hotel's covered parking shall be offered in the same manner during all Special Events. The DBAMH's security force and employees shall not park in the hotel's covered parking garage during all Special Events.
      6. The amount charged per room for each additional guest over two guests shall be the same during each Special Event. If the DBAMH requires advance payment of the room rate and/or a deposit in order to reserve a room during any Special Event, the procedures used for collecting such advance payment, including the type of advance payment accepted, the payment method required, the timeframe for receipt of the advance payment, and the hotel's policy regarding refunding the advance payment shall be the same for all Special Events and such policies shall be disclosed to guests before they register or pay any deposits to reserve a room with the hotel.
      7. If the DBAMH requires advance payment prior to serving any food or beverage products during any Special Event, such advance payment procedures shall be applied in the same manner during all Special Events and such policies shall be disclosed to guests before they register or pay any deposits to reserve a room with the hotel.
      8. The DBAMH shall use its best efforts to provide the same number of housekeepers per rooms rented, provide housekeeping service to rooms with the same frequency, and provide housekeepers with uniform procedures for cleaning rooms during all Special Events.
      9. Potential guests shall be given an opportunity to rent suites, plaza rooms, cabana rooms, hospitality rooms, terrace rooms, executive-level rooms, and presidential rooms on a first- come first-served basis during all Special Events. All rooms at all levels shall be consistently furnished as appropriate for each room level during all Special Events.
      10. The DBAMH shall not use bike racks or other objects as barricades during Special Events unless they are used in the same manner during all Special Events.
  7. GENERAL COMPLIANCE.

    HBE shall implement the plan described below to ensure compliance with federal and state public accommodation laws by HBE, its officers, employees, and agents. The plan includes, but is not limited to, provisions for the development and implementation of a non-discrimination training program for personnel, the retention of a Compliance Officer, establishing a complaint investigation procedure, testing of HBE hotels to ensure compliance with the Decree, implementation of a marketing plan to attract African American patrons to HBE hotels, and notification to the public that HBE hotels will operate in a non-discriminatory manner consistent with this Settlement Decree. In order that compliance with the Decree may be monitored appropriately, HBE shall maintain appropriate records. HBE shall cooperate with the parties in providing complete, accurate and current information as required under the Decree regarding its hotels, restaurants, bars, clubs, or lounges, and compliance with the terms of the Decree.

    1. Compliance Officer
      1. Purpose and Duties of Compliance Officer

        In order to ensure that all customers of HBE are provided accommodations and service on a non-discriminatory basis, a Compliance Officer shall be selected to oversee the implementation of the Settlement Decree.(2) The Compliance Officer shall be responsible for full oversight of defendants' fulfillment of the requirements of the Decree to ensure that it is implemented fully and effectively, and to assist in monitoring HBE's compliance with the Decree. Specifically, the Compliance Officer's duties shall include, but not be limited to:

        1. Monitoring and supervising HBE's compliance with the Decree;
        2. Investigating complaints by customers who allege that they have been discriminated against, or subjected to unequal treatment, due to their race or color, or have witnessed others being discriminated against because of their race or color;
        3. Investigating complaints by HBE officers, employees or agents who allege that they have witnessed discriminatory actions regarding customer service or treatment by other HBE employees and/or managers, or allege that they have been encouraged or pressured to discriminate against customers by HBE employees and/or managers, or allege retaliation for reporting a violation of the Decree;
        4. Reviewing, approving, and monitoring the training program and marketing plan, and overseeing the testing program provided for in the Decree;
        5. Preparing reports as required by the terms of the Decree;
        6. Providing to the United States and the State of Florida any relevant information known, or available to the Compliance Officer under any provision of the Decree upon reasonable request;
        7. Meeting and conferring with counsel for the parties to consider suggestions for implementing the spirit and letter of the Decree;
        8. Reviewing and approving HBE's revised customer service policies and procedures designed to effectuate the non-discrimination remedial goals of the Decree; and
        9. gathering, reviewing, and analyzing data with respect to Group Events.
      2. Qualifications of Compliance Officer

        The Compliance Officer shall be an individual or organization which is wholly independent from defendants. The Compliance Officer's qualifications shall include, but not be limited to, familiarity with, and experience in, the enforcement of civil rights, specifically in the areas of race and ethnicity. In the event that an organization is selected to perform the functions of a Compliance Officer, the United States and the State of Florida will have exclusive approval authority for the individual(s) within the organization who will have principal responsibility for implementing the terms of this Decree and carrying out the Compliance Officer's duties under the United States' and the State of Florida's supervision.

      3. Selection of Compliance Officer

        The parties have agreed that Project Equality, with headquarters in Kansas City, Missouri, shall serve as the Compliance Officer. Project Equality shall designate an individual, subject to the United States' and the State of Florida's approval, who shall have primary responsibility and accountability for the implementation of this Decree. Although HBE must pay the costs and expenses associated with the Compliance Officer and his or her staff and consultants, the Compliance Officer shall be responsible to the United States and the State of Florida. The Compliance Officer may at any time directly consult with the United States and the State of Florida regarding HBE's compliance with the Decree without HBE's counsel being present. Such consultation may be deemed confidential and unable to be disclosed to any representative of HBE at the request of the United States and the State of Florida. The Compliance Officer shall provide the United States and the State of Florida with any information and documentation regarding the provisions of the Decree without prior approval from defendants. The Compliance Officer shall make reports to the United States and the State of Florida, and shall make all records available in accordance with the terms of this Settlement Decree.

      4. Retention and Supervision of Compliance Officer

        HBE shall pay the salary, costs, and expenses associated with the Compliance Officer and shall provide sufficient funds to permit the Compliance Officer to hire staff and consultants to assist him or her in carrying out the Compliance Officer's duties and responsibilities under the Decree. Although the Compliance Officer shall independently contract with HBE, compensation, bonuses, or other forms of payments or benefits, and charges, debts, or other decreases in compensation or benefits of the Compliance Officer and his or her staff and/or consultants shall be negotiated between HBE and the Compliance Officer, subject to approval by the United States and the State of Florida. If these parties are unable to agree upon such terms and conditions, these parties shall use the Dispute Resolution Procedure set forth in the Settlement Decree. The defendants, their officers, agents, or employees shall not retaliate against the Compliance Officer or his or her staff and/or consultants for actions taken in accordance with the Decree. The Compliance Officer and staff may consult with any HBE employees or agents without informing HBE's counsel or officers.

      5. Implementation of Decisions by Compliance Officer

        The Compliance Officer shall implement the Decree in consultation with the United States and the State of Florida. If HBE objects to any decisions made by the Compliance Officer, such objection shall be resolved through the Dispute Resolution Procedure set forth in the Decree.

      6. Termination of Compliance Officer

        If the United States and the State of Florida, in their discretion, determine that the Compliance Officer has failed to perform adequately any duties established by this Decree in such a manner as to undermine the achievement of the purposes and provisions of the Decree, it may, upon thirty (30) days written notice to HBE, terminate the Compliance Officer.

        In such instance, the United States, the State of Florida, and defendants shall attempt to select a new Compliance Officer by reaching a consensus on the most qualified person available. If this process does not result in an agreement as to the selection of the new Compliance Officer, the selection of a new Compliance Officer shall be made by HBE subject to the approval of the United States and the State of Florida, which approval shall not be unreasonably withheld. The United States and the State of Florida, in their discretion, may interview the person proposed by HBE. If the United States or the State of Florida has any objection to HBE's proposed appointment, it shall notify HBE within ten (10) days of receipt of the name and resume. If a dispute arises concerning the appointment of a new Compliance Officer, the Dispute Resolution Procedure shall be used to resolve the dispute.

    2. Complaint Investigation

      The Compliance Officer shall establish a complaint investigation procedure. The procedure shall be submitted to the United States and the State of Florida for approval within 30 days of the Preliminary Approval Date of the Decree, or retention of the Compliance Officer, whichever is later. The Compliance Officer shall be responsible for investigating: (1) all complaints of discrimination occurring after the Preliminary Approval Date of the Decree against guests or patrons on the basis of race or color, and (2) all complaints of retaliation occurring after the Preliminary Approval Date of the Decree against officers, employees, or agents who reported discrimination against guests or patrons on the basis of race or color at Adam's Mark Hotels. Within three (3) days of receipt, HBE is required to provide the Compliance Officer with any and all information regarding any complaints, formal or informal, of discrimination against its guests or patrons on the basis of race or color, whether they involve guests, patrons, visitors, employees, or contractors. The Compliance Officer shall complete his or her investigation of all complaints within 60 days of receipt of the complaints.

      If the Compliance Officer concludes after investigation that there are reasonable grounds for believing that racial discrimination or retaliation may have occurred, the Compliance Officer shall recommend appropriate remedial measures, including, but not limited to, disciplining HBE employees, terminating HBE employees, revising training procedures or other policies, or requiring additional training for the alleged discriminator or other employees connected with the incident. The Compliance Officer shall promptly report to the United States and the State of Florida in writing all details regarding the complaint, its investigation and findings, and any proposed action or resolution of the complaint within ten days of the completion of the investigation. Any disagreement between the United States and the State of Florida and HBE concerning the disposition and resolution of such complaints shall be resolved pursuant to the Dispute Resolution Procedure.

      HBE agrees to toll any applicable state or federal statutes of limitation related to the complaint for the period that the complaint is under investigation by the Compliance Officer. Nothing in this section shall affect the right of the United States and the State of Florida to investigate independently any complaint received from any source alleging illegal discrimination by HBE. Defendants may investigate independently any such complaint only with the agreement of the Compliance Officer and subject to any conditions the Compliance Officer may impose; and such investigation shall not interfere with or compromise the Compliance Officer's investigation. Moreover, nothing in this section shall prohibit any person from exercising their rights protected under state or federal law.

    3. Meetings or Teleconferences

      Periodically throughout the term of the Decree, the Compliance Officer, after consultation with the United States and the State of Florida, shall schedule meetings or teleconferences at times and places designated by the Compliance Officer for the purpose of assessing the progress of the Decree, discussing any outstanding disputes or other issues regarding the Decree's implementation, and devising ways that the Decree's goals can be more effectively achieved. The parties shall meet or confer no less than quarterly during the term of the Decree. The Compliance Officer shall endeavor whenever appropriate to schedule the quarterly meetings at different Adam's Mark Hotels in order to address outstanding problems or issues regarding that particular hotel. If, at any time after quarterly meetings have been held for two years, the Compliance Officer determines that a smaller number of meetings per year is sufficient to accomplish the purposes of the Decree, the Compliance Officer may reduce the number of meetings after consultation with the United States and the State of Florida, provided that a minimum of two meetings per year are conducted for the remaining term of the Decree.

  8. NOTICE TO EMPLOYEES AND TRAINING
    1. Notification to Officers, Employees and Agents

      Within 60 days of the Preliminary Approval Date, HBE shall send each of its officers, employees and agents a letter accompanied by: (1) a Summary of the Decree as set forth in Exhibit A; and (2) a copy of the Employee Notice set forth in Exhibit B, explaining the employee's and/or agent's duties and obligations under Title II of the Civil Rights Act of 1964, Section 1981 of the Civil Rights Act of 1866, other applicable laws related to discrimination in public accommodations, and this Decree. In addition, HBE shall inform its officers, employees and agents that any breach of, or failure to comply with, the terms and conditions set forth in the Decree shall subject them to appropriate disciplinary action, including dismissal. Each person receiving the Summary and Notice shall execute a statement acknowledging that he or she has received and read the Summary and Notice and that he or she understands and agrees to act in accordance with the requirements contained therein. Such statement shall be in the form of Exhibit C to this Decree, and copies thereof shall be retained at the hotel or HBE office where the officer, employee, or agent works.

      Within 60 days of the Preliminary Approval Date of the Decree, HBE shall inform each current officer, employee and agent that HBE shall not reprimand, penalize, or otherwise retaliate in any way against any officer, employee or agent for opposing or reporting alleged discrimination in the service and/or treatment of customers in violation of applicable law and/or this Decree.

    2. Notice of Incentive and Evaluation Program

      Within 60 days of the Preliminary Approval Date of the Decree, all HBE officers and employees shall be notified, consistent with this section, that: (1) failure to comply with the obligations of this Decree shall affect the eligibility of any management employee to receive any benefits under any of defendants' incentive programs for management employees to the extent discretion is involved in deciding such benefits; and (2) failure to comply with the obligations of this Decree shall affect the eligibility of an employee to receive a promotion to any position within HBE.

    3. Training
      1. General

        HBE shall provide training with regard to its obligations under this Decree for all HBE employees. All costs and fees associated with the training shall be paid by defendants. The training shall be developed by Project Equality and approved by the United States and the State of Florida.

        The training program shall be developed within 30 days of the Preliminary Approval Date of this Decree. The program shall consist of both live training and video training as set forth below, and shall be submitted to the United States and the State of Florida for approval.

      2. Training of HBE Executives, and Management-Level Personnel

        Within 30 days of the date that the training program is approved by the United States and the State of Florida, and every 180 days thereafter for the first two years of the Decree, HBE shall provide live training to all Management-Level Personnel, and all persons with managerial responsibilities within the Public Accommodations of the hotels, regarding their duties and obligations under Title II of the Civil Rights Act of 1964, §1981 of the 1866 Civil Rights Act, and applicable state and local public accommodations laws.

        Thereafter, management level training shall occur once a year unless the training organization determines that more frequent training is necessary. All new HBE executives and newly-hired management level personnel shall participate in the next regularly scheduled live training session occurring after his or her date of hire. These individuals shall also view the training video as described below within ten days from the commencement date of their employment.

      3. Training of Non-Managerial Employees

        Within 30 days from the date that the training program is approved by the United States and the State of Florida, and annually thereafter during the term of the Decree, all persons subject to the terms of this Decree engaged in the service or treatment of Adam's Mark Hotel customers, who are not required to attend live training as set forth above, shall be required to undergo video training regarding their duties and obligations under Title II of the Civil Rights Act of 1964, §1981 of the 1866 Civil Rights Act, and applicable state and local laws regarding public accommodations. Thereafter, all new employees or agents engaged in the service or treatment of Adam's Mark Hotel customers not required to attend live training shall be required to receive video training within ten days from the commencement date of their employment or retention. General managers shall attend each group video training session for their respective hotels in order to answer questions and reinforce the non-discrimination training.

      4. Content of Training

        At a minimum, the non-discrimination training shall include the following: (a) instruction in the requirements of all applicable federal and state public accommodations laws; (b) a review of HBE's non-discrimination policies and of the specific requirements of this Settlement Decree; (c) notice that HBE shall not reprimand, penalize, or otherwise retaliate in any way against any officer, employee or agent for opposing or reporting alleged discrimination in the service and/or treatment of customers in violation of applicable law and/or this Decree; (d) instruction in procedures designed to ensure that race or color do not enter, either directly or indirectly, into business decisions concerning the treatment and/or service of customers; (e) a discussion of the business advantages of serving all persons on a non-discriminatory basis; (f) training in racial sensitivity; (g) training of management in handling and responding to discrimination complaints; and (h) a question and answer session for the purpose of reviewing each of the foregoing areas.

      5. Training Records

        HBE shall record the date, time, duration, agenda, and attendees for each training session.

      6. Acknowledgment of Training

        Each officer, employee or agent who participates in and receives instruction through the non-discrimination training program set forth above shall sign a statement in the form of Exhibit D to this Settlement Decree, acknowledging that he or she has participated in, understands, and has completed the non-discrimination training program.

      7. Training Materials

        HBE shall include instruction regarding HBE's duties and obligations under Title II of the Civil Rights Act of 1964, §1981 of the 1866 Civil Rights Act, applicable state and local public accommodations laws, and this Settlement Decree in all training materials and formal training sessions dealing with treatment of the public that it provides to its officers, employees or agents in the ordinary course of business. Within 120 days of the Preliminary Approval Date, HBE shall revise its current training materials, including training videos, to ensure that such materials convey the message that African Americans are welcome at HBE facilities. Within ten days thereafter, HBE shall submit all of its training materials to the United States, the State of Florida, and the Compliance Officer for approval.

    4. Disciplinary Policy

      Within 30 days after the Preliminary Approval Date of the Decree, HBE shall provide the United States, the State of Florida, and the Compliance Officer with a proposed written disciplinary policy for racially discriminatory or retaliatory conduct. The policy shall include, but not be limited to, the following: (1) a description of specific disciplinary measures that may be imposed, such as reprimands, suspensions, or dismissals, should an employee be found to have violated the terms of the Decree; and (2) a description of the procedure by which the disciplinary measures will be considered and imposed. The proposed disciplinary policy shall go into effect once it has been approved by the United States, the State of Florida, and the Compliance Officer.

  9. NOTICE TO PUBLIC, ADVERTISING, AND OUTREACH
    1. Posting of Equal Opportunity Signs

      Within 30 days after the Preliminary Approval Date, HBE will post behind the registration desk of each of its hotels a sign indicating that the facilities are open to, and that service will be provided to, all persons without regard to race or color. An additional sign shall also be posted within each of the hotel's restaurants, bars, clubs, and lounges, in a location clearly lighted and visible to patrons, up to a maximum of five signs. The sign shall have dark letters at least one-inch high on a contrasting background. The sign shall state that patrons can make complaints of racial discrimination to the Compliance Officer and shall provide HBE's toll-free number for complaints. HBE shall provide the United States and the State of Florida with a draft of the proposed signs for comment and approval prior to publishing such signs. HBE shall maintain these signs at all times for the term of this Decree. HBE shall cause such signs to be posted in any new Adam's Mark Hotels as soon as they are opened to the public. HBE shall also print this notice conspicuously on the bottom of each folio or final bill given to guests of the hotel at check-out, as well as on the guest comment cards.

    2. Nondiscrimination Statement

      The nondiscrimination statement described above in paragraph A shall be prominent and readily legible in all written media advertising (newspapers, magazines, posters, brochures, fliers, websites, etc.), as well as all nationally distributed brochures. This statement shall appear on all Adam's Mark Hotel brochures no later than 180 days after the preliminary approval of this Decree.

    3. Targeting Minority Markets

      A goal of this Decree is to increase the visibility in the African American community of Adam's Mark Hotels and facilities as desirable places of Public Accommodation. To facilitate this goal, the Compliance Officer and HBE shall design appropriate programs of affirmative outreach to African American markets. The Compliance Officer and HBE shall establish a marketing program, subject to the United States' and the State of Florida's approval, for identifying, targeting, and reaching African American markets, and for attracting African American Group Events to Adam's Mark Hotels. This plan shall be implemented for all Adam's Mark Hotels within 60 days of the Preliminary Approval Date of this Decree.

      In order to help ensure that African Americans are notified that they are welcome at, and encouraged to be patrons of Adam's Mark Hotels, its restaurants, bars, clubs, and lounges, the marketing plan shall provide for HBE to place newspaper and radio advertisements that target primarily African American audiences. The written and visual content of this media advertising should convey the message that African Americans are welcome at all Adam's Mark Hotels.

      The placement of such advertisements shall begin no later than 30 days following completion of development of the marketing plan. Newspaper and radio advertisements shall be run for 3 days at least 12 times per year. For print media, the size of the advertisement shall equal or exceed one-quarter of a page. The preceding parameters regarding the number of days the advertisements are to run and the size of the advertisements are subject to change upon recommendation of the Compliance Officer and approval by the United States and the State of Florida.

  10. TESTING
    1. General

      The Compliance Officer shall oversee "testing" of Adam's Mark Hotels nationwide. For purposes of this Decree, "testing" refers to an investigative process in which a white person and a black person, who are similarly situated, or groups of similarly situated white and black individuals, are sent to, or contact an Adam's Mark Hotel location, in person or by telephone, under controlled circumstances to determine if HBE's employees at that location are treating guests and patrons equally without regard to race or color. All hotels, restaurants, bars, clubs, lounges, or any other facilities operated by the hotel as Public Accommodations shall be tested. The costs, fees, and expenses of all tests shall be paid by HBE. The organization selected to perform testing shall be subject to the confidentiality provisions of the Decree set forth in Section XI(A).

      The Compliance Officer shall select an independent organization, different from any organization stipulated to by the parties pursuant to Section VII(A)(3) above, which is experienced in civil rights testing, preferably in the area of Public Accommodations, to conduct the tests. The organization selected to conduct the training shall be an organization which is wholly independent from defendants.

      Within 60 days of the retention of the Compliance Officer, the Compliance Officer shall notify the United States and the State of Florida of the name of an independent organization[s] it proposes to use to satisfy the requirements of this section. If the United States or the State of Florida does not object to the proposed organization within fifteen days of receipt of this proposal[s], the Compliance Officer may retain the organization[s] proposed. If the United States or the State of Florida objects to the proposed organization within such time, the Compliance Officer shall use its best efforts to propose another organization within thirty (30) days thereafter. In no event shall the Compliance Officer retain a testing organization without the approval of the United States and the State of Florida. Test procedures developed by any testing organization shall be submitted to the United States and the State of Florida for review, comment, and approval prior to the implementation of any test. The number, timing, and location of tests to be carried out by the testing organization[s] shall be determined by the United States and the State of Florida. At no time shall any employee or agent of HBE, including the Compliance Officer, be provided with any information concerning a test site, location, procedure, or test plan prior to the implementation of the test.

    2. Frequency and Location of Tests

      No fewer than six tests per Adam's Mark Hotel per year shall be conducted during the term of the Settlement Decree. The tests conducted at a particular site shall include a comparable number of tests for both discrimination against persons seeking to rent room(s) or other facilities at the hotel, either as individuals or as groups, and for discrimination against persons at the hotel's restaurants, bars, clubs, or lounges. If, at any time after tests have been conducted for two years, the Compliance Officer determines that a smaller number of tests per year is adequate to accomplish the purposes of the Decree, the Compliance Officer may, subject to the approval of the United States and the State of Florida, reduce the number of tests conducted.

      A test will count toward the annual totals described in this Section only if it is complete. A test is "complete" if all the testers assigned to visit the location have in fact visited the location, have been able to make contact with a HBE representative, either in person or by telephone, and have submitted a test report. Notwithstanding the provisions of this section, the parties agree that the United States and the State of Florida may take additional steps to monitor defendants' compliance with this Decree including, but not limited to, conducting independent tests at any Public Accommodation owned or operated, in whole or in part, by defendants.

    3. Results of Testing

      The results of all tests conducted by the selected testing organization[s] pursuant to this section, along with supporting documentation, shall be reported to the Compliance Officer, the United States, and the State of Florida within fifteen days of the conclusion of completed tests. The testing organization, however, need not report its results within fifteen days if follow up tests are required to verify a testing result and premature reporting of earlier results would compromise the testing process. Where testing results indicate a possible violation of this Settlement Decree, the Compliance Officer shall conduct an investigation of the facts and circumstances underlying such test[s] within fifteen days of receipt of the testing evidence. Within fifteen days of the completion of his or her investigation, the Compliance Officer shall provide HBE, the United States, and the State of Florida with a report containing the testing results, and his or her conclusions and recommendations. HBE shall respond to or implement the Compliance Officer's recommendations within fifteen days of receipt. If HBE disagrees with the Compliance Officer's recommendations, it shall notify the United States and the State of Florida and the matter shall be resolved pursuant to the Dispute Resolution Procedure set forth herein.

  11. RECORD-KEEPING
    1. General

      The parties acknowledge that certain information provided pursuant to this Decree is required for the sole purpose of investigating, monitoring and enforcing defendants' compliance with this Decree. The confidentiality requirements previously ordered by this Court shall remain in place. All records, reports and other documents maintained or produced pursuant to the terms of this Decree shall be kept confidential and used and/or disclosed solely for the purposes of this Decree. The Compliance Officer and the parties shall not disclose such information to any person not a party, except as is reasonably necessary to enforce, monitor or administer the provisions of this Decree or to comply with otherwise applicable laws. Any inadvertent disclosure of such confidential information to a person not a party shall not constitute contempt unless such disclosure was willful.

      If the Compliance Officer or the defendants desire[s] to disclose information made confidential by this section for any purpose other than to enforce or monitor the purposes and provisions of this Decree or to comply with otherwise applicable laws, that party shall notify the United States and the State of Florida of the information it seeks to disclose and the reasons for disclosing it. The party shall provide to the United States and the State of Florida the nature of the information proposed to be disclosed, and appropriate documentation, no later than ten (10) business days before the information is intended to be disclosed. If the United States and the State of Florida object to the disclosure of such information, the parties shall attempt to resolve all issues concerning the disclosure of such information pursuant to the Dispute Resolution Procedure.

    2. Discrimination Complaints

      The Compliance Officer shall maintain all records of any oral or written, formal or informal complaints of discrimination on the basis of race or color concerning HBE's service and treatment of customers filed or submitted by any customer, potential customer, employee, former employee, or received from any other source, including calls made to the HBE toll-free complaint line. This paragraph shall apply to all complaints, letters, or notices filed or submitted to any HBE officers, employees or agents, including, but not limited to, all complaints submitted to Adam's Mark Hotels as well as to the corporate headquarters. These records shall also include the databases currently used by HBE's corporate headquarters and legal departments to record customer complaints. Those databases shall be modified to include data fields showing complaints alleging discrimination based on race or color, and the race of such complainants. This information shall be forwarded to the Compliance Officer regularly, and upon request, in a computer-readable form.

    3. Training Materials

      The Compliance Officer shall maintain records relating to all training conducted pursuant to the Decree, including, but not limited to, training program materials, instructions, directives, guidelines, policy statements, and formal training sessions provided to all HBE personnel.

    4. Advertising/Promotional Materials

      The Compliance Officer shall maintain representative copies of all advertisements and promotional materials and, as appropriate, all records relating to the dates and/or times and media where such advertisements or promotional material appeared and where and how such materials were disseminated and distributed.

    5. Testing Materials

      The Compliance Officer shall maintain all records relating to any tests conducted by the selected testing organization[s] pursuant to the terms of the Decree.

    6. Other Records

      The Compliance Officer shall maintain all other records relating to implementation of the provisions of this Settlement Decree, including the provisions outlined in Section VI(B)(2) of this Decree. The Compliance Officer and HBE shall retain all documents and records related to the Decree for a period of six months following the expiration of the Decree. At any time between the Preliminary Approval Date and six months following the expiration date of the Decree, the United States and the State of Florida shall be permitted to inspect and copy any records or documents related to this Settlement Decree upon reasonable notice.

  12. REPORTING REQUIREMENTS
    1. Quarterly Reports

      No later than 90 days after the Preliminary Approval Date, and every three months thereafter for the duration of the Decree, the Compliance Officer shall serve on the United States, the State of Florida, Class Counsel, and HBE a report containing the following information:

      1. Advertising Information

        Representative copies of all advertisements and promotional materials which were published, printed, disseminated or aired during the reporting period, together with a statement indicating, as appropriate, the dates and media where they appeared and where and how promotional materials were disseminated or distributed.

      2. Training Information

        The first report shall include a certification that the initial non-discrimination training program set forth in this Decree has been completed, or is scheduled for completion, and shall specify the location of all signed employee acknowledgments (hereto attached as Exhibit D). Each report thereafter shall contain a description of all training activity conducted pursuant to the Decree which has occurred during the preceding 90 day reporting period.

      3. Discrimination Complaints

        Each report shall contain details of any complaint received by the Compliance Officer during the preceding 90 days, charging or alleging discrimination on the basis of race or color with respect to service or treatment of customers at any HBE hotel, restaurant, bar, club, or lounge, including a description of the recommendations of the Compliance Officer and any action taken by HBE in response to such recommendations.

  13. DISPUTE RESOLUTION PROCEDURE
    1. General

      If differences arise between any of the parties with respect to compliance with, interpretation of, or implementation of the terms of this Decree, the parties shall make best efforts to resolve such differences promptly.

      Class Counsel will defer to the United States Department of Justice and/or the State of Florida for purposes of enforcing the injunctive terms of this Decree and will not file a motion to enforce the injunctive portions of the Decree unless the United States Department of Justice and/or the State of Florida agree to join such motion.  Nothing in this Decree shall constitute a waiver of plaintiffs' right to petition the Court for attorneys' fees and costs incurred in pursuing an enforcement motion should plaintiffs and the State of Florida and/or United States Department of Justice file such a motion and prevail.

    2. Written Exchange and Consultation

      Subject to Section XIII(A), if a party believes that an issue is not capable of resolution through informal discussions, it shall promptly provide written notification to the other party of the issue and the facts and circumstances relied upon in asserting its position. The party notified of the issue shall be given a reasonable period of time (not to exceed 30 days) to review the facts and circumstances and to provide the party raising the issue with its position, including the facts and circumstances upon which it relies in asserting its position. Within a reasonable period of time thereafter (not to exceed 15 days), the parties shall meet, by telephone or in person, and attempt to resolve the issue informally. The Compliance Officer may be involved in this meeting or teleconference at the invitation of a party.

    3. Resolution by the Mediator

      If the parties are unable to resolve the issue among themselves, they shall notify the Mediator and seek his or her assistance in resolving the dispute. The parties shall agree on the selection of the Mediator. All fees and costs associated with the Mediator shall be paid by defendants. The Mediator shall attempt to mediate the dispute and reach an amicable agreement among the parties. If at any point the Mediator believes in his or her discretion that the parties are at an impasse, the Mediator shall notify the parties in writing of his or her recommended resolution of the dispute. This resolution shall be binding on the parties unless, subject to Section XIII(A), one of the parties seeks a contrary ruling from the Court within 10 days following receipt of the Mediator's proposed resolution. The Court shall uphold the Mediator's recommendation as long as it is reasonable, supported by the facts, and not predicated on a mistake of law or a clearly erroneous interpretation of the terms of the Decree.

    4. Exigent Circumstances

      Subject to Section XIII(A), nothing in this section shall prevent any party from promptly bringing an issue before the Court when, in the moving party's view, the facts and circumstances concern issues of such importance that they require immediate attention by the Court. The moving party's papers shall explain the facts and circumstances that necessitate immediate Court action. If any party brings a matter before the Court requiring immediate action, the other parties shall be provided with appropriate notice under the Local Rules of this District and the Federal Rules of Civil Procedure.

  14. SETTLEMENT CLASS

    The parties agree and stipulate that for purposes of settlement of claims for monetary relief, the Settlement Class defined below shall be certified under Rules 23(a) and 23(b)(3) of the Federal Rules of Civil Procedure; and that for purposes of settlement of claims for injunctive relief the Settlement Class defined below shall be certified under Rules 23(a) and 23(b)(2) of the Federal Rules of Civil Procedure.

    Accordingly, the Court hereby approves and certifies the following plaintiff class pursuant to Rules 23(a), 23(b)(2), and 23(b)(3) of the Federal Rules of Civil Procedure:

    1. Guests

      All black persons who were registered guests at the DBAMH during 1999 BCR (defined as April 9-10, 1999), or who stayed in a room at the DBAMH overnight as part of a rooming group with a registered guest during 1999 BCR. This includes, but is not limited to, every black guest at the DBAMH who, during 1999 BCR, on the basis of race or color, has allegedly been:

      1. Required to purchase and/or wear an identification wristband;
      2. Subjected to hostile or threatening security measures;
      3. Provided substandard housekeeping services or amenities;
      4. Required to prepay for food purchased on the premises of the DBAMH;
      5. Denied access to visitors;
      6. Denied access to the in-room mini-bar;
      7. Denied access to in-room telephone services;
      8. Denied access to in-room pay per view movies;
      9. Denied the use of valet parking services;
      10. Denied an opportunity to reserve or rent Plaza rooms, Cabana rooms, King Suite rooms, Hospitality/Terrace rooms, or Presidential rooms;
      11. Denied the use of conference or business rooms or facilities;
      12. Provided a substandard room lacking basic equipment, fixtures, or other amenities;
      13. Subjected to racially derogatory remarks;
      14. Ejected from the DBAMH, or encouraged to leave the hotel through discriminatory application of the DBAMH check out policy;
      15. Required to pay higher room rates or deposits, or denied the use of a credit card to pay for hotel services or amenities;
      16. Provided substandard or discourteous treatment; or
      17. Charged higher prices for food, beverages, or services.
    2. Visitors

      All black persons who visited, or attempted to visit the DBAMH during 1999 BCR (defined as April 9-11, 1999) and who did not stay overnight in a room (hereinafter "Visitors"). This includes, but is not limited to, every black person who, during 1999 BCR, on the basis of race or color, has allegedly been:

      1. Denied entry to the DBAMH;
      2. Required to purchase or otherwise obtain an identification wristband in order to enter the DBAMH;
      3. Subjected to hostile or threatening security measures on the premises of the DBAMH;
      4. Required to prepay for food purchased on the premises of the DBAMH;
      5. Denied access to hotel guests;
      6. Subjected to racially derogatory remarks;
      7. Ejected from the DBAMH, or encouraged to leave the hotel;
      8. Denied access to services, facilities, or amenities on the premises of the DBAMH;
      9. Discouraged from using services, facilities, or amenities on the premises of the DBAMH;
      10. Provided substandard or discourteous treatment; or
      11. Charged higher prices for food, beverages, or services.
  15. MONETARY RELIEF FOR SETTLEMENT CLASS:
    NOTICE AND CLAIMS PROCEDURE
    1. Establishment of Monetary Settlement Funds
      1. Within ten (10) business days following the Final Approval Date, the defendants shall pay $3,100,000 into a settlement fund to compensate members of the Settlement Class deemed to be Guests (hereinafter the "Guest Fund"), and shall pay $1,300,000 into a settlement fund to compensate members of the Settlement Class deemed to be Visitors (hereinafter the "Visitor Fund"). The Guest Fund and the Visitor Fund shall be deposited into a trust account (hereinafter the "Account") with a national banking association designated by Class Counsel. Expenditures from the Guest Fund and the Visitor Fund shall be utilized exclusively for the following purposes:
        1. To pay the Private Plaintiffs in accordance with the provisions of this section upon final Court approval of the Decree;
        2. To pay members of the Settlement Class in accordance with the provisions of this section upon final Court approval of the Decree;
        3. To pay any expenses or tax obligations of the Account; and
        4. To pay the expenses of claims administration and processing to the extent such expenses exceed the amount allocated for claims administration and processing under the preliminary approval order.
      2. All interest earned on the Account between the time that the Funds are deposited and the time that the Funds are dispersed to class members and Private Plaintiffs shall be used to pay members of the Settlement Class and the Private Plaintiffs in accordance with the provisions of this section.
      3. If the Decree is not finally approved by the district court or is overturned on a direct appeal, all principal and all interest remaining in the Account, the Claims Administration Fund, or the Notice Fund, minus amounts already paid for notices, expenses, taxes, or claims processing shall be returned to defendants within ten (10) days of the date the Decree is not approved or is overturned on direct appeal.
      4. In the event a timely direct appeal is filed after the Final Approval Date, funds deposited into the Account shall not be used to pay the expenses of claims administration and processing unless and until the appeal is finally resolved resulting in final judicial approval of this Settlement Decree.
    2. Selection and Duties of Claims Administrator

      Poorman-Douglas Corporation, 10300 SW Allen Blvd., Beaverton, Oregon 97005-4833 shall be designated as the Claims Administrator. As discussed more fully below, the duties of the Claims Administrator shall include, but not be limited to: the mailing of the Court-approved notice; the mailing of claim forms; receipt and processing of objections, opt-outs, and claim forms; determining eligibility for participation in the Guest Fund and Visitor Fund; transmitting disputed claims to Class Counsel and the Claims Arbitrator where required by the procedures discussed below; mailing checks to qualified class members; processing all telephone inquiries from potential class members; preparing and filing all tax forms necessitated by the creation of the Guest Fund and/or Visitor Fund; sending W-9 forms and preparing 1099 forms for the qualified class members who receive portions of the Funds; and providing Class Counsel with regular reports concerning the status of the claims administration process. Within five business days following the Preliminary Approval Date, the defendants shall deposit $100,000 into a Claims Administration Fund to pay the fees, costs and expenses of the Claims Administrator. Dispersal of these funds to the Claims Administrator shall be the responsibility of Class Counsel. Defendants will have no further responsibility or liability for any costs related to claims administration.

    3. Allocation of Settlement Funds
      1. Within ten (10) days after the Effective Date, $100,000 of the Guest Fund shall be used to pay $25,000 each to Private Plaintiffs Dante Gilliam, Jamie Morrison, Latoya Straughn, and Napoleon Berrian and $25,000 of the Visitor Fund shall be paid to Private Plaintiff Mark Simmonds.
      2. The remainder of the Guest and Visitor Funds, excluding the sums to be paid to the Private Plaintiffs, shall remain deposited in the Account and shall accrue interest and shall not be dispersed until after the Effective Date and not until the final list of qualified class member claimants participating in the Guest and Visitor Funds is approved by the Claims Arbitrator. Immediately following approval of the final list, the balance of the Guest and Visitor Funds shall be distributed to qualified class member claimants on the final list. The failure of any class member to cash his or her settlement check within 180 days of mailing shall waive the class member's entitlement to a share of the Fund. To the extent any money remains in the Guest Fund, Visitor Fund, Notice Fund or Claims Administration Fund 180 days after distribution of checks from the Funds to the final list of qualified class member claimants, all remaining money shall be donated to such non-profit organizations dedicated to the furtherance of the civil rights of African-Americans as the parties agree at that time.
    4. Opt-outs
      1. Consistent with Section XV of the Decree certifying the Settlement Class under Federal Rule of Civil Procedure 23(b)(3), and in accordance with the requirements of Federal Rule of Civil Procedure 23(c)(2), any putative member of the class may request exclusion from the class by notifying the Claims Administrator in writing of his or her desire for exclusion pursuant to the procedures set forth in the Court's Order preliminarily approving the Decree. Only those persons who request exclusion in the time and manner set forth in the Court's order preliminarily approving the Decree shall be excluded from the Settlement Class.
      2. Pursuant to Federal Rule of Civil Procedure 23(b)(3) and (c)(2), the terms and provisions of this Decree concerning monetary relief shall have no binding effect on any person who makes a timely request for exclusion that satisfies all requirements for making such requests contained in the Court's order preliminarily approving the Decree.
    5. Notice
      1. Following preliminary approval of the Decree by the Court, Class Counsel shall cause to be published the notice of settlement pursuant to the media plan and notice attached at Exhibit ___. Payment of the costs associated with notice shall be accomplished by defendants depositing $150,000 in a separate escrow account (hereinafter "the Notice Account") with a national banking association designated by Class Counsel. Defendants shall deposit these funds in the Notice Account within five business days following the Preliminary Approval Date. Dispersal of the funds contained in the Notice Account shall be made by the Claims Administrator to the appropriate third party vendor at such time as the bill for each element of the media plan comes due. Defendants shall have no further responsibility or liability for any costs associated with notice.
      2. In addition to published notice, within ten (10) days after preliminary approval of the Decree, Class Counsel and defendants shall each prepare and deliver to the Claims Administrator a computer disk containing the names and last known addresses and/or last known telephone numbers of all guests registered at the Daytona Beach Adam's Mark during April 9 or 10, 1999, as well as the names and last known addresses and/or telephone numbers of all potential class members who contacted Class Counsel or defendants, respectively, concerning complaints of discrimination regarding customer service and treatment occurring at the DBAMH during April 9-11, 1999 (hereinafter the "Putative Class Member List"), to the extent such names, addresses and/or telephone numbers are available in Class Counsel's and/or Defendants' records.
      3. Within twenty-one (21) days after receipt of the Putative Class Member List from Class Counsel and the defendants, the Claims Administrator shall cause to be mailed, via first class mail, a notice, in the form of Exhibit ___, and a Claim Form with instructions, in the form of Exhibit ____, to each person on the Putative Class Member List. The costs of the mailing shall be paid out of the Notice Fund.
      4. For each notice and claim form mailed to persons on the Putative Class Member List and returned as undeliverable, the Claims Administrator shall, within ten (10) days after receipt of the undeliverable notice and claim form, arrange through IRSC or a comparable service, for a computer database trace for such potential class members and mail the notice and claim form to any additional address obtained for these potential class members. The costs of the IRSC or other comparable search shall not exceed an average of $15.00 per trace, and shall be paid out of the Claims Administration Fund.
    6. Receipt of Claim Forms
      1. Beginning on the day following the mailing of notice to Settlement Class Members or the publishing of the first published notice and continuing until thirty (30) days after the claim filing deadline established in the preliminary approval order, the Claims Administrator shall maintain and staff with live persons a toll free telephone line to receive calls from potential claimants seeking claim forms between the hours of 9:00 a.m. and 6:00 p.m. (Eastern Standard Time), Mondays through Fridays. At all other times, the line should be answered by a voicemail message listing the hours the toll-free number will be answered by live persons. These hours of telephone coverage shall be subject to revision and modification upon agreement of the parties based on the recommendation of the Claims Administrator.
      2. The Claims Administrator shall be responsible for mailing claim forms to all potential claimants who request such forms in writing, and serving as a repository for the receipt of claim forms upon their return by all potential claimants. From the Preliminary Approval Date until three weeks prior to the claim filing deadline established in the preliminary approval order, the Claims Administrator shall mail a claim form to the potential class member within seven (7) days after receiving a written request for a claim form. Thereafter, and until the claim filing deadline, the Claims Administrator shall mail a claim form within twenty-four hours after receiving a written request for a claim form.
      3. The Claims Administrator shall initially review every claim form received to determine if the form is an original claim form and shall determine whether the claim form is complete and properly signed and notarized. If the claim form is not an original claim form, it shall be rejected. If the claim form is incomplete, is not properly signed and notarized, or a state-approved photo identification card is not attached, the Claims Administrator shall return the claim form to the claimant or request additional information from the claimant. Such requests for additional information shall be sent to the claimant via First Class mail. The claimant shall be given thirty (30) days from the date of mailing of the information request within which to return the information requested by the Claims Administrator. The failure of a claimant to complete, sign, have notarized, or return the information request within thirty (30) days of mailing shall result in a denial of the claim. It shall be the sole responsibility of the Claims Administrator to determine whether a claim form is incomplete and to send an information request to potential claimants who file incomplete claim forms along with instructions as to how to provide the missing information.
      4. In the event that Class Counsel, the Department of Justice, the State of Florida, or defendants receive requests from potential claimants for claim forms, those requests shall be recorded and transmitted promptly to the Claims Administrator, who shall retain sole responsibility for the mailing of all claim forms.
      5. The Claims Administrator shall, on a periodic basis, submit reports of its activities to Class Counsel. Upon the request of Class Counsel, the Claims Administrator shall provide copies of claim forms, rejected claim data, and any and all other documents or information related to the claims procedure.
      6. All of the costs associated with the requirements of this section shall be paid out of the Claims Administration Fund.
    7. Eligible Class Members
      1. For all persons other than the Private Plaintiffs, eligibility to receive payment from the Guest Fund or Visitor Fund shall depend upon:
        1. Submission of a copy of a state-approved identification card and a completed notarized claim form, see Exhibit ___, signed under oath under penalty of perjury and postmarked on or before the claim filing deadline established in the preliminary approval order;
        2. A determination by the Claims Administrator (or Claims Arbitrator, in the event of a disputed claim) that the person meets the class definition set forth in Section VIII for either the Guest Fund or Visitor Fund; and
        3. A determination that the person has not opted out of the lawsuit, or previously released his or her claim.
      2. The defendants stipulate and agree that they will have no role in claims determination and will not challenge any determination made by the Claims Administrator, Class Counsel or the Claims Arbitrator concerning a potential claimant's eligibility to receive a monetary award from the Guest Fund or Visitor Fund.
      3. Defendants and their counsel shall have no responsibility in connection with: (a) the administration of the settlement or the disbursement of the Guest or Visitor Funds, (b) the administration or disbursement of the Claims Administration Fund or Notice Fund, or (c) giving notice to the Class. HBE and its counsel shall not be liable to any Class members or any other person in any way for the administration or disbursement of the Guest or Visitor Funds or for any failure of Class Counsel or of the Claims Administrator to provide notice or properly administer or disburse funds.
      4. The date of return for all claim forms shall be determined by U.S. Postal Service postmark. In the event a postage meter stamp conflicts with a U.S. Postal Service postmark, the U.S. Postal Service postmark shall be determinative. Failure to return the completed claim form postmarked on or before the claim filing deadline established in the preliminary approval order shall bar the potential class member from having his or her claim considered and from receiving a monetary award from the Fund. Each potential class member must sign his/her own claim form under oath and subject to the penalty of perjury, have the claim form notarized, and supply the Claims Administrator with a copy of a state-approved photo identification.
      5. It shall be the responsibility of the Claims Administrator in the first instance to determine a claimant's eligibility to receive a monetary share of the Guest Fund or Visitor Fund. Upon receipt of a timely filed claim form, the Claims Administrator shall notify the claimant by first class mail, postage pre-paid, that the claim form has been timely received and that all further processing of the claim will be made by the Claims Administrator. The claimant shall be further advised by the Claims Administrator that it shall be the sole responsibility of each potential member of the Settlement Class to keep the Claims Administrator advised of every change of his or her address and/or telephone number. Neither the Claims Administrator nor Class Counsel shall have any obligation to attempt to locate or contact an individual if a mailing to that individual's last known address is returned as undeliverable. However, if a qualified claimant's award check is returned as undeliverable, the Claims Administrator shall conduct a computer database tracing and send a notice of the availability of the claimant's award check to the address(es) identified by the tracing service.
      6. Wherever possible, determinations of eligibility to receive a monetary award from the Guest Fund or Visitor Fund shall be made solely upon the information supplied by the claimant on the Claim Form. However, the Claims Administrator or Class Counsel may request supporting information and documents from a potential claimant to assess the validity of the claim. Failure to respond to a request for additional information within thirty (30) days from the date of mailing of such request shall result in denial of the claim. The Claims Administrator shall have discretion to determine the order and timing in which specific claim forms will be reviewed and evaluated. The Claims Administrator shall use its best efforts to resolve expeditiously the merits of all claims.
      7. If the Claims Administrator determines that a claimant is not eligible to participate in the Guest or Visitor Fund, the Claims Administrator shall send the claimant a written notice that states the reason(s) for the determination. This notice shall be sent to the claimant's last-known address by first-class mail, postage prepaid, and shall inform the rejected claimant of his or her right to challenge the determination, as well as the procedures for doing so. To file a challenge, a rejected claimant must notify the Claims Administrator in writing of his or her desire to challenge the determination. The written challenge must be received by the Claims Administrator on or before thirty (30) days after the date of the mailing of the Claims Administrator's letter notifying the claimant of the adverse determination. Written challenges received after the thirty (30) day time period shall be deemed waived, regardless of whether the claimant received the notice finding the claimant not eligible to participate in the Fund.
    8. Disputed Claims
      1. In the event that a rejected claimant submits a timely written challenge to the determination made by the Claims Administrator, the Claims Administrator shall submit the claim to Class Counsel for review. Class Counsel shall have thirty (30) days from receipt of the claim and written challenge to decide whether the determination of the Claims Administrator should be reversed. If Class Counsel affirms the decision denying the claim, the claim shall then be submitted to the Claims Arbitrator for final resolution.
      2. The Claims Arbitrator shall be selected by Class Counsel with approval by the Court. All claims shall be resolved by the Claims Arbitrator based solely on relevant written documents timely submitted by the claimant and any other relevant information obtained by Class Counsel. All decisions issued by the Claims Arbitrator shall be in writing and shall state briefly the reason(s) for the decision. The Claims Arbitrator shall resolve all disputed claims within forty-five (45) days of the time that the claim is submitted for resolution.
      3. The Claims Administrator shall mail a copy of the decision of the Claims Arbitrator to the last known address of the claimant by first-class mail, postage prepaid. All determinations by the Claims Arbitrator shall be final, binding, and non-appealable. The fees and expenses of the Claims Arbitrator shall be paid out of the Claims Administration Fund.
    9. Class Monetary Distribution
      1. After the Claims Arbitrator has resolved all timely filed written challenges to the Claims Administrator's determination of claimant eligibility to receive a monetary award from the Guest Fund and Visitor Fund, the Claims Administrator shall submit a final list of qualified Guest claimants and a final list of qualified Visitor claimants and their respective shares of the Guest and Visitor Funds to the Claims Arbitrator for review and approval. Upon approval of the final list by the Claims Arbitrator, the remainder of the Guest and Visitor Funds, plus interest accrued on the respective remainders from the time of deposit into the Account, shall be distributed to all persons included on the final lists. All persons on the final Guest list shall share equally in the Guest Fund and all persons on the final Visitor list shall share equally in the Visitor Fund. A claimant shall not be permitted to recover from more than one Fund. If a claimant qualifies for both funds, that claimant shall receive an award only from the Guest Fund.
      2. The administration and disbursements of all checks from the Account shall be the responsibility of the Claims Administrator. The Claims Administrator shall mail all checks to the last known address of each person included on the final list. The Claims Administrator shall use its best efforts to complete the disbursement of the Funds as expeditiously as possible following the completion of the final lists and approval by the Claims Arbitrator. The Claims Administrator shall be responsible for providing each qualified claimant with all appropriate tax reporting forms and for filing all appropriate tax reporting forms with the appropriate government entities.
  16. ADDITIONAL RELIEF RELATED TO CLAIMS OF THE
    STATE OF FLORIDA

    Defendants shall make a one-time contribution in the amount of $1,500,000 to be divided among Florida Agricultural and Mechanical University, Bethune-Cookman College, Edward Waters College, and Florida Memorial College to assist in developing tuition scholarships, internships, and cooperative education programs designed to train students in hotel and hospitality managements. If there is no hotel or hospitality program, the schools shall use the contribution to assist students studying business management and/or administration. The defendants are directed to divide this contribution among the foundations of the schools as follows:

    Florida Agricultural and Mechanical University $500,000
    Bethune-Cookman College $400,000
    Edward Waters College $300,000
    Florida Memorial College $300,000

    Defendants shall also make a contribution of $100,000 to the Florida Agricultural and Mechanical University's Foundation to assist in developing community forums and college coordination for future Black College Reunions. Payment shall be made directly to the above schools within 10 days from the Effective Date. HBE shall also contribute $1,000 to each school, each year, for the next three years to Florida Agricultural and Mechanical University, Bethune-Cookman College, Edward Waters College, and Florida Memorial College to be used in assisting such institutions in promoting BCR 2001, 2002, and 2003.

    HBE shall place a sign[s] and/or banner[s] on the front of the DBAMH which welcomes BCR participants. Such signs and/or banners shall measure no less than 7' x 3' with contrasting colors and shall be displayed for the entire BCR weekend.

  17. ATTORNEYS' FEES, COSTS, AND EXPENSES
    1. Plaintiffs, the State of Florida and the Settlement Class shall be deemed prevailing parties under applicable law for purposes of the recovery of statutory attorneys' fees, costs and expenses in this case. Class Counsel are entitled under applicable law to recover their reasonable attorneys' fees, litigation expenses, and costs that they have expended in this case.
    2. Defendants have agreed to pay Class Counsel $1,750,000 as their reasonable attorneys' fees, litigation expenses, and costs for work performed through and including the Effective Date, and as compensation for attorneys' fees, expenses and costs that will be incurred in monitoring or assisting the Claims Administrator in administering the claims determination process on behalf of the Settlement Class before and after the Effective Date.

      This amount satisfies any obligation the defendants may have to pay reasonable attorneys' fees, expenses and costs to the plaintiffs and any members of the Settlement Class for any and all work performed through and including the Effective Date of the Decree, and for any and all work needed to monitor the Decree and assist with the administration and processing of claims, regardless whether the claims administration and processing work is performed before or after the Effective Date of the Decree.

      Payment of this amount shall be made directly to Class Counsel within five (5) business days following the Effective Date of the Decree.

      The State of Florida agrees to waive its claim for prevailing party attorneys' fees and costs incurred in connection the investigation and prosecution of its claims herein. This waiver shall not apply to any litigation that may be necessary to enforce the terms of this Decree.

  18. NOTICES

    All notices and other communications required under this Decree shall be in writing and delivered either personally or by depositing the same postage prepaid, by overnight mail, to the parties at the following addresses:

    TO:

    Plaintiff United States of America
    Chief, Housing and Civil Enforcement Section
    U.S. Department of Justice
    P.O. Box 65998
    Washington, D.C. 20035-5998

    Plaintiff Class
    Sam J. Smith
    Burr & Smith LLP
    442 W. Kennedy Blvd. Suite 300
    Tampa, FL 33606

    John P. Relman
    Relman & Associates
    1350 Connecticut Ave
    Suite #304
    Washington D.C. 20036

    Plaintiff State of Florida
    Office of the Attorney General
    Department of Legal Affairs
    Civil Rights Division
    110 SE 6th Street, 10th Floor
    Ft. Lauderdale, FL 33301

    Defendants
    HBE General Counsel
    11330 Olive Street Road
    P.O. Box 419039
    St. Louis, MO 63141

    The parties shall give written notice of any change of address for purposes of this section to the other parties.

  19. RELEASE OF CLAIMS

    Upon the Effective Date of the Decree, the defendants, their subsidiaries, directors, officers, agents, and employees shall be, and hereby are, fully released and forever discharged from any and all claims, demands, charges, complaints, rights and causes of action of any kind, known or unknown, relating to 1999 BCR, that were or could have been raised in the Private Plaintiffs' Second Amended Complaint by the Private Plaintiffs or members of the Settlement Class who do not timely request exclusion from the Settlement Class. This release shall survive the termination of the Decree.

  20. MODIFICATION

    The provisions of this Decree may be modified by written agreement of the parties. The parties shall file any such written agreement with the Court. The modification will be effective as of the date of filing the written agreement and

    shall remain in effect for the duration of the Decree or until such time as the Court indicates through written order that it has not approved the modification.

    It is so ORDERED this ________ day of ________________, 2000

________________________________
United States District Judge

CHARLES G. BURR
Bar No: 0689416
SAM J. SMITH
Fla. Bar No: 0818593
KAREN M. DOERING
Fla Bar No: 0060879
BURR & SMITH, LLP
442 W. Kennedy Boulevard, Suite 300
Tampa, FL 33606
(813) 253-2010
fax (813) 254-8391

JOHN P. RELMAN
CHRISTINE R. LADD
RELMAN & ASSOCIATES
1350 Connecticut Avenue
Suite #304
Washington, D.C. 20036

OMAR V. MELEHY
MELEHY & MELEHY, LLC
8630 Fenton Street, Suite 110
Silver Spring, MD 20910
(301) 587-6364
fax (301) 587-6308

DENNIS COURTLAND HAYES
BRUCE GEAR
NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE
4805 Mt. Hope Drive
Baltimore. MD 21215-3297
(410) 358-8900
(410) 358-9350

LARS WALDORF
WASHINGTON LAWYER'S COMMITTEE FOR CIVIL RIGHTS AND URBAN AFFAIRS
11 Dupont Circle N.W., Suite 400
Washington, D.C. 20036
(202) 319-1010
fax (202) 319-1010

ATTORNEYS FOR PLAINTIFFS

ROBERT A. BUTTERWORTH
ATTORNEY GENERAL OF FLORIDA
Fla. Bar No. 114422

PAUL HANCOCK
DEPUTY ATTORNEY GENERAL

ALLISON K. BETHEL
ASSISTANT DIRECTOR OF CIVIL RIGHTS

KATHLEEN BURGENER
ASSISTANT ATTORNEY GENERAL
DEPARTMENT OF LEGAL AFFAIRS
OFFICE OF ATTORNEY GENERAL
CIVIL RIGHTS DIVISION
110 SE 6th Street, 10th Floor
Ft. Lauderdale, FL 33301
(954) 712-4605
fax (954) 712-4826

ATTORNEYS FOR THE STATE OF FLORIDA

MICHAEL M. BAYLSON
TERESA CAVENAGH
DUANE, MORRIS & HECKSCHER LLP
One Liberty Place
Philadelphia, PA 19103-7396
(215) 979-1150
Fax: (215) 979-1020

JERRY A. MOORE, III
MICHAEL J. POLLACK
ARTER & HADDEN, LLP
1801 K Street, N.W.
Washington D.C. 20006-1301
(202) 775-7100
Fax: (202) 857-0172

ROBERT H. KOESTER
GENERAL COUNSEL
HBE CORPORATION
11330 Olive Street Road
P.O. Box 419039
St. Louis, MO 63141
(314) 567-9000
Fax: (314) 567-0602

DUNCAN DOWLING, III
ROGERS, DOWLING, FLEMING, & COLEMAN, P.A.
P.O. Box 3427
34 East Pine Street
Orlando, FL 32802
(407) 849-6459
Fax: (407) 425-8536

ATTORNEYS FOR THE DEFENDANTS


EXHIBIT A Gilliam et al.HBE Corporation, d/b/a Adam's Mark Hotels
State of FloridaHBE Corporation, d/b/a Adam's Mark Hotels
United States.HBE Corporation, d/b/a Adam's MarkHotels
SUMMARY OF SETTLEMENT DECREE

On May 20, 1999, Plaintiffs Dante Gilliam, Jamie Morrison, Latoya Straughn, Napoleon Berrian, and Mark Simmonds (hereafter "the Private Plaintiffs") filed a complaint against defendant HBE Corporation d/b/a Adam's Mark Hotels (hereafter "HBE" or "defendant") seeking to represent a class of black persons who experienced race discrimination at the Daytona Beach Adam's Mark Hotel (hereafter "the DBAMH") during Black College Reunion (hereafter "BCR") in violation of Title II of the Civil Rights Act of 1964, 42 U.S.C. §2000a et seq. and 42 U.S.C. §1981. On December 3, 1999, the Private Plaintiffs filed their Second Amended Complaint, which added HBE-Florida Corporation (hereinafter "HBE-Florida") as a defendant.

On December 16, 1999, the Florida Attorney General's Office ("State of Florida") filed a complaint against HBE, HBE-Florida, and Frederick S. Kummer, Jr., the Chief Executive Officer of HBE, and an unopposed Motion to Intervene in Private Plaintiffs' action against HBE asserting pendent state claims under Florida's Unfair and Deceptive Trade Practices Act, Chapter 501, Part II. On January 18, 2000, the Court granted the State of Florida's Motion to Intervene.

On December 16, 1999, the United States filed a complaint in Federal District Court in Florida, alleging that HBE Corporation, d/b/a Adam's Mark Hotels, has engaged in a pattern or practice of discrimination on the basis of race or color in the treatment and/or service of guests and patrons at the Adam's Mark Hotels (AMH), in violation of Title II of the Civil Rights Act of 1964 (Public Accommodations Act), 42 U.S.C. §§2000a et seq. The private plaintiffs, State of Florida, and the United States contend that HBE Corporation (hereinafter "HBE") treats African American guests and patrons less favorably than white guests and patrons.

HBE denies the allegations but, in the interest of resolving this matter without the necessity or expense of litigation, has elected to enter into a global settlement with all three plaintiffs, which includes the filing of a Settlement Decree ("Decree"). This document is intended to be a summary of that Decree. If you desire to have a complete copy of the Decree, you may secure one by writing to:

HBE CORPORATION
11330 Olive Street Road
P.O. Box 419039
St. Louis, MO 63141

The Decree, which has been signed by a Federal Judge, requires HBE to advise you that it does not discriminate on the basis of race or color. The Decree provides that HBE, together with its subsidiaries, officers, employees, agents, assigns, and successors in interest in the ownership and/or operation of any Adam's Mark Hotel, must not:

  1. Deny to any person on the basis of race or color the full and equal enjoyment of the goods, services, facilities, privileges, advantages, and accommodations of its hotels, restaurants, bars, clubs, or lounges;
  2. Deny or provide inferior service, or offer less favorable or more restrictive terms and conditions of service, to any person based on race or color;
  3. Represent to any person, based on race or color, that services or the enjoyment of defendant's facilities are not available, when such are in fact so available;
  4. Assign any person, based on race or color, to a particular hotel room;
  5. Increase security measures, and the number of security personnel, based on the race or color of the hotel's guests;
  6. Require hotel guests to wear wristbands or to undergo other identification procedures based on their race or color;
  7. Exclude or limit the number of patrons at its hotels, restaurants, bars, clubs, or lounges based on the race or color of the patrons;
  8. Implement musical formats or other promotional events at its hotels, restaurants, bars, clubs, or lounges designed to exclude or limit the number of black persons patronizing these establishments;
  9. Deny or prohibit persons from visiting hotel guests based on the race or color of the guests or visitors;
  10. Instruct or encourage employees or staff members to discourage any person from visiting defendant's facilities or from enjoying the full benefits of defendant's facilities based on that person's race or color;
  11. Charge higher prices for food, beverages, or services based on race or color;
  12. Impose room rates and methods of payment based on race or color; and
  13. Retaliate against any officer, employee or agent for opposing or reporting alleged discrimination in the service and/or treatment of guests or patrons, in violation of applicable law and/or this Decree.

In order to meet our obligations under the law and to ensure that our minority guests and patrons are treated fairly, we will, among other things, be: (1) retaining a Compliance Officer who will be responsible for monitoring HBE's compliance with the Decree; (2) advising all subsidiaries, officers, employees, agents, assigns, and successors in interest in the ownership and/or operation of any Adam's Mark Hotel of the contents of the Decree and the fact that HBE cannot and will not retaliate against any officer, employee or agent for opposing or reporting alleged discrimination in the service and/or treatment of guests and patrons of the Adam's Mark hotels, restaurants, bars, clubs, or lounges, in violation of applicable law and/or the Decree; (3) training all officers, employees and agents of their duties and obligations under federal law and the Decree; (4) notifying our guests and patrons through appropriate advertisements of the HBE's non-discrimination policy; and (5) implementing a testing program to monitor service provided to guests and patrons of the Adam's Mark hotels, restaurants, bars, clubs, or lounges.


EXHIBIT B Gilliam et al.HBE Corporation, d/b/a Adam's Mark Hotels
State of FloridaHBE Corporation, d/b/a Adam's Mark Hotels
United States.HBE Corporation, d/b/a Adam's MarkHotels
NOTICE OF NON-DISCRIMINATION POLICIES AND PROCEDURES

As part of our effort to ensure compliance with federal anti-discrimination laws, particularly public accommodation laws, I take this opportunity to remind all officers, employees, and agents of our policies concerning non-discrimination. It is important for each officer, employee, and agent to review his or her actions in light of these requirements and for everyone to keep in mind the importance of treating all persons equally. Non-discrimination in all aspects of our hotel operations is not only required by law, it is good business, and, above all, the right thing to do.

In reaffirming that policy, I want to remind you that under the applicable state and federal public accommodations laws, you must at all times and in every part of your work ALWAYS:

  1. Provide to any person, irrespective of race or color, the full and equal enjoyment of the goods, services, facilities, advantages, and accommodations of Adam's Mark Hotels;
  2. Provide service at the same favorable terms and conditions of service irrespective of the customer's race or color;
  3. When requiring prepayment or presentment of identification as a condition of service, that must be done irrespective of race or color;
  4. Negotiate terms and conditions for group events and conventions irrespective of race or color;
  5. Refrain from making any statements which may be construed as discouraging guests or other patrons from patronizing any Adam's Mark hotel or its outlets based upon race or color;
  6. Instruct employees and staff not to discourage any person, on the basis of his or her race or color, from patronizing any Adam's Mark hotel or its outlets;
  7. Ensure that there never is any notice, statement, or advertisement with respect to the service or equal enjoyment of any Adam's Mark hotel or its outlets that is made, printed, published, or cause to be made, that indicates any limitation or discrimination based on race or color, or an intention to make any such limitation or discrimination; or
  8. Ensure that there is never any representation to any person, because of race or color, that service or enjoyment of any Adam's Mark hotel or its outlets, is unavailable when such is in fact so available.

Failure to comply with our non-discrimination policy will result in appropriate disciplinary action which may include termination. Any action taken by you that results in the unequal service, treatment or behavior to guests or patrons of any Adam's Mark hotel or its outlets on the basis of race or color may constitute a violation of state and federal public accommodations laws. You are expected to report to the Compliance Officer or your supervisor any instances that you have witnessed that may constitute discrimination by other Adam's Mark hotel personnel or any attempts by other personnel to encourage or coerce you to discriminate against guests or patrons of the Adam's Mark hotels. Our company will not retaliate against you or any officer, employee, or agent for opposing or reporting any such instances of alleged discrimination.

Sincerely,

Fred S. Kummer, Jr.
President and CEO
Adam's Mark Hotels


EXHIBIT C Gilliam et al.HBE Corporation, d/b/a Adam's Mark Hotels
State of FloridaHBE Corporation, d/b/a Adam's Mark Hotels
United States.HBE Corporation, d/b/a Adam's MarkHotels
ACKNOWLEDGMENT AND AGREEMENT TO ABIDE BY SETTLEMENT DECREE AND NON-DISCRIMINATION POLICIES

I have read the "Summary of Settlement Decree" and the "Notice of Non-Discrimination Policies and Procedures" provided to me on __(date here)____________. I understand the requirements of the Settlement Decree and the non-discrimination policies and procedures, and recognize that my failure or refusal to adhere to them could result in possible sanctions against me by a court as well as disciplinary action, including termination of employment, by my employer. Additionally, I understand that I will not be reprimanded, penalized, or otherwise retaliated against in any way for opposing or reporting alleged discrimination in the service and/or treatment of guests and patrons of any Adam's Mark hotel or its outlets, in violation of applicable law and/or the Settlement Decree.

Dated this ____ day of ________, _____.

_____________________________
Employee or Agent Signature
_____________________________
Employee or Agent --Printed Name
_____________________________
Street Address
______________________________
City, State, Zip Code

Dated this ____ day of ____________, ____.

_______________________________
Company Representative


EXHIBIT D Gilliam et al.HBE Corporation, d/b/a Adam's Mark Hotels
State of FloridaHBE Corporation, d/b/a Adam's Mark Hotels
United States.HBE Corporation, d/b/a Adam's MarkHotels
COMPLETION OF TRAINING PROGRAM

On __________________, ____, I participated in and completed the diversity/racial sensitivity training program. I have been instructed about my duties and obligations as an officer, employee or agent of the Adam's Mark under federal, state, and local public accommodations laws and the Settlement Decree entered into by HBE. I understand my duties and obligations and am aware that my failure or refusal to adhere to them could result in possible sanctions against me by a court as well as disciplinary action, including termination of employment, by my employer. Additionally, I understand that I will not be retaliated against in any way for opposing or reporting alleged discrimination in the service and/or treatment of guests or patrons of any Adam's Mark hotel or its outlets, in violation of applicable law and/or this Decree.

Dated this _____ day of ________, _____.

_____________________________
Employee or Agent Signature
_____________________________
Employee or Agent --Printed Name
_____________________________
Street Address
______________________________
City, State, Zip Code

Dated this ____ day of ____________, ____.

_______________________________
Company Representative


1. The Compliance Officer is discussed in detail in Section VII infra.

2. Defendants may select an employee (e.g. Director of Diversity) to act as the corporate compliance official within the company and to participate in the implementation of this Decree for purposes of continuing such practices after the termination of this Decree. It is contemplated that defendants' corporate compliance official will work cooperatively and constructively with the Compliance Officer. However, with respect to implementation of this Decree, such employee shall be under the direct supervision of the Compliance Officer and shall have no authority to override, limit, or change the terms of this Decree or the Compliance Officer's authority provided in this decree. Furthermore, such employee shall be subject to the same confidentiality requirements as required of the Compliance Officer regarding such matters as, complaint investigation and testing. If such employee fails to comply with the confidentiality requirements and/or the terms of this Decree to the satisfaction of the Compliance Officer, or the United States and the State of Florida, he/she shall be excluded from any further participation in the implementation of the terms of this decree.

Filed 2001-12-03 > >
Updated August 6, 2015

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