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Citing Contract Breach, GBTA Sics Lawyer On Seceding Georgia Chapter

By Jay Boehmer / July 24, 2012 / Contact Reporter
Business Travel News on X

The Global Business Travel Association last week claimed through a lawyer that the Georgia Business Travel Association, which previously announced plans to wind down "exclusivity" with the mother ship and partner with other entities, has breached its contract.

Additionally, GBTA has demanded that GeorgiaBTA cease and desist from using the GBTA trademark, logo and "proprietary and confidential information" and even shed its identity as a "business travel association" or BTA. The latter "strongly suggests a connection or affiliation to GBTA," according to the memo sent to ?GeorgiaBTA president Haley Johnson on behalf of GBTA by Morrison Cohen lawyer Y. David Scharf.

The Georgia chapter on June 8 notified GBTA that it would end its "exclusive affiliation" with the association, which, according to GBTA, went into effect July 23. In the run-up, the chapter has remained "an affiliated member of GBTA," therefore bound by member agreements, according to the memo.

?GeorgiaBTA's Johnson, who also works for United Airlines, in a July 17 memo to chapter members obtained by BTN indicated that the BTA has worked to establish partnerships with other entities, including the Association of Corporate Travel Executives "to produce an Executive Forum in Atlanta in March" and Georgia State University to develop an "academic" member category for students and faculty. Additionally, Johnson's memo also referred to a partnership with The BTN Group, which publishes Business Travel News.  

"Some of our people have been guest speakers at their events but we do not have a formal partnership with GeorgiaBTA," according to The BTN Group vice president and group publisher Tim Reid.

GeorgiaBTA's Johnson did not reply to requests to comment.

While GBTA counsel in the memo to Johnson asserted that "chapters are directly prohibited from entering into such agreements without the GBTA's permission," a source close to the chapter stressed that GeorgiaBTA has not violated any agreements with GBTA and has yet to sign official partnerships with other entities.

Regarding one such proposed partnership, ACTE executive director Ron DiLeo said the association this week expects to formalize an agreement with GeorgiaBTA, which he likened to partnerships ACTE has forged with others, including the French Association of Travel Managers and the Guild of Travel Management Companies. "The agreement that we submitted to Georgia's Business Travel Association is not dissimilar to other associations around the world," DiLeo said. "We do membership swaps. We write educations sessions for each other. We collaborate; we co-market."

GBTA on Friday claimed that the Georgia chapter's "actions and statements suggest that it intends to develop its future business on a model created by GBTA, and may plan to continue utilizing GBTA's confidential and proprietary information," according to a statement attributed to GBTA president and CEO Jim McMullan and executive director and COO Michael McCormick.

As such, GBTA is demanding that the GeorgiaBTA "return all confidential and proprietary property belonging to GBTA and cease and desist in using or disclosing any such information." Among those are GBTA marketing lists, computer programs, electronic data, research, reports, whitepapers and "all GBTA templates," including those for "RFPs, contracts, sponsor solicitations, chapter and member position descriptions, voting ballots, charts of accounts and record retention policies."

GBTA last week demanded that GeorgiaBTA by the close of business on July 20 affirm an "agreement to cease and desist in using GBTA's proprietary and confidential information in its future business," and demanded that the BTA "not share said information with other entities," according to the memo sent by GBTA counsel.

"Absent such compliance and written confirmation, GBTA will have no choice but to exercise all available legal remedies," according to the memo sent by GBTA's lawyer.

At press time, a GBTA spokesman said the association had "received no further communication from the Georgia Business Travel Association or its counsel."

Meanwhile, GeorgiaBTA leadership has proposed new bylaws for the chapter "to help build a structure to support the new collaborative direction," according to Johnson's memo to chapter members.

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