-139-
a large hotel through Kanter’s efforts. Eulich, Transcr. at
1647-1648.
Kanter and Eulich were aware Connolly would need assistance
organizing a hotel management company for the Gateway Hilton.
Ballard was also aware of Connolly’s needs, and he introduced
Eulich to Connolly as someone who would assist Connolly with the
support services he needed to properly manage the Gateway Hilton.
Connolly, Transcr. at 2620-2621, 2631. Ballard believed Connolly
also met with Kanter. Ballard, Transcr. at 184. As discussed
below, Eulich (probably with Kanter’s assistance) organized
Gateway Hotel Management Co. (GHM) for Connolly.68
In 1981, Eulich and Kanter organized a corporation called
Essex Hotel Management Co. (Essex Corp.). Formby, Transcr. at
1502-1503; Eulich, Transcr. at 1650; Clifford, Transcr. at 1669-
1670. By letter dated October 16, 1981, Eulich informed Connolly
that (1) GHM had been organized, (2) GHM was capitalized with
$10,000, and (3) Connolly would be expected to pay $2,000 to
Eulich from GHM’s first distribution to cover his share (20
68 The STJ report, at 55, included a recommended finding of
fact that “Mr. Connolly, nevertheless, proceeded to organize a
hotel management company and incorporated Gateway Hotel
Management Corp. (GHM) some time in 1981.” This recommended
finding of fact is manifestly unreasonable. As discussed in the
Court’s additional findings of fact in the text that follows,
John Connolly did not organize a hotel management company, and he
was largely ignorant of the existence and function of the various
business entities with which he was associated.
Page: Previous 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 NextLast modified: May 25, 2011