This year, the coronavirus pandemic wreaked havoc on the South Florida hospitality industry, but attorneys expect next year to be different.
Marbet Lewis is expecting an increase in litigation on the commercial side. She said when the coronavirus pandemic struck “everyone moved so quickly, and a lot of businesses just accepted the regulations as they came out.”
(L to R) Mark J. Neuberger, a partner at Foley & Lardner in Miami; Marbet Lewis, a founding partner at Spiritus Law in Coral Gables; and,
Louis J. Terminello, the chair of the hospitality, alcohol and leisure industry group at GreenspoonMarder based in Miami. Photo: Courtesty Photo
And Louis J. Terminello, the chair of the hospitality, alcohol and leisure industry group at Greenspoon Marder, pinpointed a sector that will revive commerce.
“South Florida nightlife drives other segments of the hospitality industry here,” Terminello said. “Many tourists come here to party at our nightclubs and visit our restaurant and hotels as a result. All segments of hospitality will not fully recover until the nightlife industry recovers as well.”
Terminello teaches alcohol law at the University of Miami School of Law and previously served as a senior law enforcement investigator with the State of Florida’s Division of Alcoholic Beverages and Tobacco in Miami for more than a decade. Based on his work in the hospitality field, he cited research from Florida International University showing the immense monetary cost COVID-19 has had on South Florida this year.
Terminello estimated that since the start of the coronavirus pandemic, the hotel and restaurant industry has taken a $3.3 billion hit. And rules passed by local governments, such as the early curfew in Miami-Dade County, have decimated nightlife and has caused a domino effect on other businesses as tourists do not see Miami as the vacation destination it once was.
Marbet Lewis, a partner at Spiritus Law in Coral Gables, agreed with Terminello.
Lewis, who has focused her practice on laws governing the alcohol industry, including the manufacturing, importation and sale of these beverages since 2004, said players in the field are starting to come out of their state of shock. In turn, that will have broader implications on litigation in this area of the law.
“Everyone moved so quickly, and a lot of businesses just accepted the regulations as they came out,” Lewis said.
Now, Lewis is expecting an increase in litigation from both the commercial and plaintiff-side in the hospitality industry.
Lewis pointed to local orders, such as the curfew and social distancing orders in Miami-Dade, which are perceived by some on the commercial side as impractical and unfair, especially compared to other options. For instance, Lewis cited better usage of outside areas by restaurants and bars.
While on the plaintiff side, Lewis said businesses may be letting their guards down.
“There’s going to be a lot of litigation because people are starting to go out there and challenge businesses that are not following orders or businesses that are putting people at risk,” Lewis said. “What tends to happen as we’re coming out of this and people become less strict on how they themselves are following this, businesses tend to do it as well.”
Mark J. Neuberger, a partner at Foley & Lardner in Miami, is expecting a lot of litigation in other areas, such as on claims by restaurants and bars under their business interruption insurance policies, and mortgage and commercial foreclosures on hospitality businesses.
But, Neuberger said financial foreclosures could be avoided depending upon the level of financial aid Congress may allocate to struggling businesses in the upcoming weeks and months.
In the meantime, Neuberger said there is light at the end of the tunnel.
“There’s a lot of pent-up demand for vacation and leisure travel as people have been locked up in their houses, coming up on a year,” Neuberger said. “If people see the vaccine is safe and can be done, that should be good for the industry come summertime.”
###
About Spiritus Law:
Spiritus Law is an entrepreneurial law firm focused on business regulatory licensing, trade practice compliance and business conflict resolution for highly regulated industries including those dealing in alcohol production and distribution, hospitality services, commercial development and international business transactions. The Firm is founded on traditional principles of client counseling and teamwork with a cutting-edge twist on regulatory innovation and modern problem-solving. We focus on the business needs of individual clients and leading industry members so we can advance business objectives and influence regulatory changes that guide our clients’ business operations. Spiritus Law combines a unique blend of professionals, including attorneys, government consultants, licensing assistants and paralegals to assist its diverse clients. We leverage our unparalleled experience working with government agencies and judicial courts on the federal, state and local level to develop compliance business operation strategies and resolve business conflicts and disputes. Our modern approach to transparent client representation and employee engagement defines our collaborative spirit and progressive energy.
Core Services:
Primary service areas include Alcohol Licensing & Regulatory Compliance, Alcohol Production & Distribution Transactions, Food & Hospitality Industry Compliance, and Administrative Enforcement Defense. The Alcohol Industry Group focuses on providing complete business licensing and regulatory services and business operational guidelines for the manufacturing, importation, purchase and retail sale and service of alcoholic beverages and other regulated products. Our firm services an array of industries, including alcohol producers, sports teams, hotels, restaurants, theme parks, movie theaters, grocery stores, liquor stores, bars, commercial developers, security service providers, firearms suppliers and more.