The Marriott hotel empire has recently hit the headlines regarding a family dispute between father and son.
John Marriott III has filed a complaint in DC Superior Court claiming that his father, Bill Marriott, is attempting to drive him into financial ruin by cutting him off from the family’s trust and has forced him out of the family business. John believes that this is because he divorced his wife Angela in 2015 against his parents’ wishes. The Marriott family are devout Mormons, a religion that strongly discourages divorce.
It is not only Bill Marriott that has been included in this lawsuit, John’s uncle, Richard Marriott has also been named as a defendant because he shares control along with Bill of the family trust. The suit’s major allegation is that John’s father and uncle are in breach of their fiduciary duty by denying him his rightful share of the family fortune.
The almost $3 billion trust was set up by Bill and Richards’ parents and founders of the Marriott hotel brand, J. Willard and Alice Marriott
John started working the family business as a 15-year-old dishwasher at the Crystal City Marriott and worked his way up before becoming executive Vice President of Sales and Marketing and President of North American Lodging.
John and others in the company believe that he would be the one to succeed Bill as CEO, John claims in the lawsuit that his father started looking for alternatives in 2005. the complaint reads
“While John had performed at a high level in every one of his assignments, John’s appearance and demeanour did not meet his father’s exacting standards. Smoother and more polished candidates, and in particular a former litigation lawyer name Arne Sorensen, better fit the mold.”
John said in the lawsuit that he had struggled with alcohol and drug addiction his whole life but it never affected his work performance. It also states that Bill had been aware of this for years but tolerated it as it hadn’t caused damage to the family’s reputation.
During an interview with Washingtonian, John said
“This is really tough. To sue my dad and uncle is the last thing I want to do, and the last thing I ever expected to do. I’ve always looked up to them, and I’ve always trusted them, and they’ve always supported me and been there for me. And I love them.” He went on to say “Since the divorce, my dad has tried to take everything that I’ve earned and everything that my grandparents left for me, basically to punish me for not maintaining the image of the perfect Mormon family.”
A spokesperson for Bill and Richard Marriott said, “We have not yet read the complaint. The allegations of which we are aware at this time are untrue.”
John left Marriott in 2006 but remained on the board, focusing on JWM Family Enterprises, another family business that also develops hotels. The business was started in 1993 as part of creating a more tax-efficient estate plan.
The lawsuit alleges that Bill Marriott removed John as CEO of JWM, slashed his equity in the JWM hotels and diverted a “substantial part” of John’s trust to a “non-beneficiary”.
John says he misses his family, “I always looked up to my dad and trusted him. I idolised the guy.”
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