Discovery Failures Sink Booted Ritz Carlton Residences Partner

A suit over the removal of Nelson Hotels Inc. as manager of a Chicago skyscraper project was properly dismissed based on discovery violations, the U.S. Court of Appeals for the Seventh Circuit held Dec. 21.

Kenneth E. Nelson sued his former business partners after his company was removed from the project, called the Ritz-Carlton Residences, as Nelson’s allegedly negative net worth was causing financing problems, the court’s unsigned opinion said.

Nelson’s repeated failure to produce loan applications and financial statements requested in discovery justified dismissal of his suit, the court said.

The judge showed that he properly assessed whether dismissal ...