Expedia 2012 Annual Report Download - page 40

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alleges conversion and equitable claims. The court granted defendants’ motion to dismiss on October 25, 2010
and the county appealed. On August 4, 2011, the commonwealth court reversed and remanded the county’s
request for declaratory judgment, but affirmed the dismissal of the county’s other claims. The case was continued
pending a decision in the City of Philadelphia litigation.
Pine Bluff, Arkansas Litigation. On September 25, 2009, Pine Bluff Advertising and Promotion Commission
and Jefferson County filed a class action against a number of online travel companies, including Expedia, Inc.,
Hotels.com, and Hotwire. Pine Bluff Advertising and Promotion Commission, Jefferson County, Arkansas, and
others similarly situated v. Hotels.com LP, et. al. CV-2009-946-5 (In the Circuit Court of Jefferson, Arkansas).
The complaint alleges that defendants have failed to collect and/or pay taxes under hotel tax occupancy
ordinances. The court denied defendants’ motion to dismiss. Plaintiffs have filed a motion for class certification.
On January 12, 2012, the court entered an order staying the case for thirty days while it considers again whether
the plaintiff should be required to exhaust administrative remedies. The court lifted the stay. The plaintiffs then
filed a motion for class certification. A hearing on plaintiffs’ motion for class certification was held on
November 19, 2012.
Leon County, Florida et. al. Litigation. On November 3, 2009, Leon County and a number of other counties
in Florida filed an action against a number of online travel companies, including Expedia, Inc., Hotels.com,
TravelNow.com and Hotwire. Leon County, et. al. v. Expedia, Inc., et. al. Case No: 2009CA4319 (Circuit Court
of the Second Judicial Circuit, Leon County, Florida). The complaint alleges that defendants have failed to
collect and/or pay taxes under the county’s tourist development tax ordinances. Flagler, Alachua, Nassau,
Okaloosa, Seminole, Pasco, Pinellas, Hillsborough, Lee, Charlotte, Escambia, Manatee, Saint Johns, Polk,
Walton and Wakulla counties have been added as plaintiffs. On February 3, 2012, plaintiffs filed a motion for
summary judgment. On February 8, 2012, the defendant online travel companies filed a motion for summary
judgment. On April 19, 2012, the court granted the defendant online travel companies’ motion for summary
judgment, denied the plaintiffs’ motion and held that online travel companies have no obligation to remit hotel
occupancy taxes. The counties have filed an appeal of the court order granting the online travel companies’
motion for summary judgment and denying the plaintiffs’ motion for summary judgment. Oral argument on the
plaintiffs’ appeal is scheduled for February 12, 2013.
Leon County v. Expedia, Inc., Florida Department of Revenue Litigation, et al Litigation. On December 14,
2009, Leon County filed an action against a number of online travel companies and the State of Florida
Department of Revenue for recovery of state taxes for hotel occupancy. Leon County v. Expedia, Inc., et al., Case
No. 2009CA4882 (Circuit Court of the Second Judicial Circuit, Leon County, Florida). Leon County has sued the
online travel companies and the Florida State Department of Revenue for failure to collect state hotel occupancy
taxes. The court denied defendants’ motion to dismiss. On December 21, 2011, the Florida Department of
Revenue filed a motion for summary judgment. The online travel companies also moved for summary judgment.
On September 19, 2012, the court granted the online travel companies and the Florida Department of Revenue’s
motions for summary judgment dismissing all claims in the case on the basis that Leon County does not have the
right to seek recovery of state sales taxes. Leon County has appealed.
Florida Attorney General Litigation. On November 3, 2009, the Florida Attorney General announced a suit
against Expedia, Inc. and Orbitz, Inc. State of Florida, Office of the Attorney General, Department of Legal
Affairs v. Expedia, Inc., et al., Case No. 2009 CA (Circuit Court for the Second Judicial Circuit, Leon County,
Florida). The complaint includes one cause of action for hotel occupancy taxes under the Florida Deceptive and
Unfair Trade Practices Act. In November 2010, the complaint was amended to include other online travel
companies. The complaint has not been served.
City of Philadelphia Litigation. The city of Philadelphia appealed the administrative decision by its Tax
Review Board holding that Expedia is not obligated to pay hotel occupancy taxes. The Appeal of the City of
Philadelphia, Pennsylvania v. Tax Review Board, Case Nos. 00764 and 00363 (Court of Common Pleas of
Philadelphia County, First Judicial District). On January 14, 2011, the court of common pleas held in favor of
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