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partnership’s income. Although IRA and THC, as partners, also
received a combined 47.5 percent of the income of Essex
Partnership, IRA and THC, in contrast to MHM, provided no
services to GHM.
Eulich and MHM’s top management essentially viewed Essex
Partnership as a marketing and sales device whereby MHM
eventually might obtain more management contracts for large
hotels. In addition, MHM needed to increase its level of
experience and expertise in managing and operating large hotels.
Because of the substantial services that MHM was providing GHM,
Eulich considered the Gateway Hilton and Midland Hilton
management contracts to be part of MHM’s management business.
Connolly could not explain the benefits that GHM would
receive under the GHM/Essex representation and marketing
agreement; he did not expect anyone at Essex Partnership to
perform liaison functions between himself and Prudential. From
MHM’s standpoint, Formby did not know what liaison functions
Essex Partnership was expected to perform for GHM, and he
believed that no such activities occurred. James, MHM’s
president, could not identify a specific person or entity who
would have acted as a liaison between the owners and operators of
the hotel properties in question. James did not know that IRA
and THC were partners in Essex Partnership until he was shown the
partnership agreement at trial. Eulich had never seen the Essex
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