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.