The Texas Federal Tax Institute, a Dallas-based nonprofit, has filed a lawsuit over cancellation of its annual conference at the Signia by Hotel La Cantera Resort & Spa. The group attributed the cancellation to the hotel wanting to capture “more lucrative business” from the Spurs’ return to the NBA Finals.
Josie Norris, San Antonio Express-News / Staff photographer
The San Antonio Spurs aren’t defendants in a lawsuit filed this week, but their return to the NBA Finals figures prominently in it.
The Texas Federal Tax Institute alleged Signia at Hilton La Cantera Resort & Spa canceled the group’s annual conference less than 48 hours before attendees were due to arrive.
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The reason? La Cantera wanted to capture “more lucrative business” from the Spurs’ appearance in the championship series, the Dallas-based nonprofit group said in its complaint.
The group sought a temporary restraining order prohibiting La Cantera from canceling the conference and room booking. However, the parties reached an agreement, according a note signed by state District Judge Antonia Arteaga at 4:55 p.m. Tuesday. The note was made public Wednesday.
A La Cantera spokesperson confirmed a deal had been reached.
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“We worked closely with the group and we are pleased to share that the matter has been resolved,” the spokesperson said Wednesday. No further details were provided.
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The group’s website shows it’s now holding the conference from Wednesday to Friday at the Hilton Placio del Rio at 200 S. Alamo St.
It’s unclear if La Cantera had any hand in shifting the event to the Placio del Rio. Austin attorneys Judd Stone II and Christopher Hilton, who represent the group, didn’t immediately respond to a request for comment.
The lawsuit had not been dismissed as of early Wednesday afternoon.
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In laying out its allegations, the organization took a swipe at the team just vanquished by the Spurs in the Western Conference finals.
“In a display of sportsmanship on par with the Oklahoma City Thunder, La Cantera Resort & Spa is attempting to capitalize on the blood, sweat, and tears of the San Antonio Spurs by canceling a contract with” the group, the complaint said.
The Texas Institute for Federal Texas, which does business as the Texas Federal Tax Institute, provides continuing legal education to tax lawyers and accountants. It calls itself “the cream of the tax profession” in the state and the Southwest.
The organization said it entered into a contract three years ago to hold a conference from Tuesday through Sunday at the 496-room La Cantera. The conference, which regularly attracts more than 250 attendees, has been held at La Cantera since at least 2018.
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La Cantera agreed to provide 455 guest room nights at rates ranging from $165 to $265 a night. It also set aside meeting and event space for the conference.
The group said it fully performed under the contract and has paid nearly $250,000 to La Cantera.
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At 8 a.m. Monday, La Cantera gave notice that it was canceling the institute’s reservations and “refusing to honor its obligations under the contract,” the suit said.
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“La Cantera informed TFTI that the reason for its cancellation was the occurrence of the NBA Finals in San Antonio at the same time as the TFTI conference,” Kevin Thomason, the group’s chairman, said in a declaration attached to the lawsuit.
The group argued the contract did not give La Cantera the right to cancel the conference for any reason. The agreement contains a “force majeure” clause, which excuses a party from a contract when extraordinary events beyond its control — such as natural disasters, wars or government actions — make performance impossible.
“The occurrence of the NBA Finals is none of these things,” the group added in its suit. It was filed just after 5 p.m. Monday.
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The defendants are Benchmark LC San Antonio LLC, which does business as the La Cantera Resort & Spa; property owner LCR Hotel LLC, part of Ohana Real Estate Investors; and LCR Resort LLC.
In the breach of contract and tortious interference with a contract suit, the group had sought more than $1 million for what it said was the “irreparable injury” it suffered.