The Tokyo District Court on Tuesday ordered Prince Hotels Inc. and its 12 executives to pay some ¥290 million in compensation to Japan Teachers' Union (Nikkyoso) and 1,889 teachers for canceling a contract to let the union use rooms for an annual study meeting.

The ruling is significant because it unambiguously upholds people's right to free assembly and speech. It not only accepted in full the union's demand for compensation, including about ¥50,000 for individual teachers, but also ordered the firm to run an apology notice in major national newspapers.

Nikkyoso planned to hold its annual meeting in early February 2008. Teachers were to share their experiences and discuss wide-ranging issues related to education. The union made a contract with the hotelier in May 2007 for use of rooms for the meeting at Grand Prince Hotel Shin Takanawa in Tokyo. But the firm told Nikkyoso in November 2007 that it was canceling the contract, citing expected massive street protests by rightist groups against the union and subsequent inconvenience and safety problems for other hotel guests and neighboring residents.

Following a request from Nikkyoso, the Tokyo District Court issued a provisional injunction on Jan. 16, 2008, ordering the hotel chain to let Nikkyoso use the rooms. Two weeks later, the Tokyo High Court turned down the firm's appeal. But the firm continued to refuse to let Nikkyoso use the rooms.

The Tokyo District Court's ruling in the damages lawsuit said that Prince Hotels' nonfulfillment of a contract is clear. It noted that the hotel chain's illegality in refusing to follow the provisional court injunctions is "extreme" and that the firm "ignored the judiciary."

Significantly, the court pointed out that the planned Nikkyoso meeting would have contributed to development of thought and personality through exchanges of various opinions and thus deserved legal protection. It also said that Prince Hotels could have fulfilled the contract even if there had been protest activities by rightist groups. While Prince Hotels has chosen to appeal the ruling to the Tokyo High Court, the firm would do well to reflect on its behavior and honor contracts that involve the right to free assembly and speech.